During the October to December quarter of 2022, Rekha Jhunjhunwala increased her stake in a Tata Group stock that gave multibagger returns to its shareholders.
According to the latest shareholding data available on the exchanges, Tata Communications’ shareholding pattern shows that Rekha Jhunjhunwala has increased her stake from 1.6% to 1.79%. In the September quarter, she held 45,75,687 shares of the company, however, she currently holds 51,00,687 shares.
Tata Communications shares were trading at ₹ 1381.25 apiece at 01:32 PM on Friday. Therefore her holding in the company was worth ₹ 7,04,53,23,919 (₹ 704.53 crores).
Tata Communications was incorporated as VSNL. The Government of India, in February 2002 sold a 25% stake in it as per their divestment plan. Consequently, the company was taken under the administrative control of the Tata Group.
It provides communication, collaboration, cloud, mobility, connected solutions, network and data centre services. In fact, Tata Communications partners with more than 300 of the Fortune 500 companies.
Tata Communications is a large-cap company with a market capitalization of ₹ 39,806 crores. It has given multibagger returns of 216% in the past three years. If an investor would have invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 3.16 lakhs today.
However, it has a high debt-to-equity ratio of 9.74. Its shares were trading at a price-to-earnings ratio of 21.67, which is higher than the industry average of 16.35, indicating that the stock might be overvalued as compared to its peers. Investing