Upside for Tata Communications hinges on data growth, esp newer segments

Land monetisation could be a short term trigger

After falling 14 per cent on lower than expected results in the December quarter, the stock of Tata Communications more than erased the losses gaining 26 per cent since then. Half of those gains came in the last two trading sessions due to an increase in target price. The triggers being land bank monetisation and robust growth in data services.

With the government looking to offload its 26 per cent stake in the company through an offer for sale, the company will have the option to monetise the 756 acres of surplus land across the country. Analysts at CLSA peg