Tata Consultancy Services

Buy TCS with a target of Rs 1700

Posted by : my_money

Dear,

I have been bearish for the last couple of years because I am working in this sector and also involved in mid level activities.
IT sector will no more be an outperformer in near future due to the following reasons.
i) IT biggies are unable to move up the value chain
ii) India does not have salary advantages any more. In fact, I believe that we are overpaid!!
iii) MNCs have been doing backward integration. So, they are now competing with Indian companies but Indian companies are not able to move up. so, they can`t compete with MNCs.
iv) All world leading companies have built their competencies based on domestic market. Unfortunately, our domestic IT demand is not matured enough to build leader.
v) IT biggies have grown too much too fast. Pyramid is not proper anymore. Everyone is manager!!

However, this are my personal opinion. Stock market may react differently.

Rgds,

Buy TCS with a target of Rs 1700

Posted by : KARUNAS

Dear,

IT is the only sector where I am actually in loss.
the reason may be I started investing in this secter in, may be Mid 2005.

Now what to do with the holdings in IT?

thanks for the nice opinion.

Buy TCS with a target of Rs 1700

Posted by : my_money

Dear Karunas,

You are more experienced than me. You are one of the few boarders whom I respect.
One little advice, keep away from IT sector. I know that you don`t need my advice but IT sector can be worse than we can think of. We are still unaware of the impact of crash in financial sector.
There is high probability of losing the existing job than that of getting a new one. This is happening the first time since the beginning of IT sector. It is not comparable to dot com burst. IT sector has not seen this before. Trust me!

Rgds,

Buy TCS with a target of Rs 1700

Posted by : Guest

tcs is expected to post eps of rs 61 to 63 this year.

with 25 - 30 percent growth, it should get a pe of atleast 20.

target of tcs can be rs 1300 by march.

Buy TCS with a target of Rs 1700

Posted by : my_money

Dear Karunas,

You are more experienced than me. You are one of the few boarders whom I respect.
One little advice, keep away from IT sector. I know that you don`t need my advice but IT sector can be worse than we can think of. We are still unaware of the impact of crash in financial sector.
There is high probability of losing the existing job than that of getting a new one. This is happening the first time since the beginning of IT sector. It is not comparable to dot com burst. IT sector has not seen this before. Trust me!

Rgds,

Buy TCS with a target of Rs 1700

Posted by : my_money

Dear Karunas,

You are more experienced than me. You are one of the few boarders whom I respect.
One little advice, keep away from IT sector. I know that you don`t need my advice but IT sector can be worse than we can think of. We are still unaware of the impact of crash in financial sector.
There is high probability of losing the existing job than that of getting a new one. This is happening the first time since the beginning of IT sector. It is not comparable to dot com burst. IT sector has not seen this before. Trust me!

Rgds,

Buy TCS with a target of Rs 1700

Posted by : KARUNAS

Now the market is really testing the patience, I dont know for how long this may go on, IT biggies are bottoming every day, earlier it was due to INR appreciation, and now the INR depreciation has not made any effect at all. If one is havi ng patience since Feb-Mar, now he just cannot do anything.

Buy TCS with a target of Rs 1700

Posted by : Varner

3 to 5 years is a little long.

Buy TCS with a target of Rs 1700

Posted by : Varner

Dear vk,

TCS may be still available cheaper than current price, is it better to wait a little to enter this share for long term?

Buy TCS with a target of Rs 1700

Posted by : vkk43

In some cases, one has to keep patience for 3-5 years in order to get decent returns. Those periods hv gone when u could make money in 3-5 days. Forget those days for the time being.

Buy TCS with a target of Rs 1700

Posted by : vkk43

In some cases, one has to keep patience for 3-5 years in order to get decent returns. Those periods hv gone when u could make money in 3-5 days. Forget those days for the time being.