TCS has target of Rs 1065: R Ravi

R Ravi of Karvy Stock Broking is of the view that TCS has target of Rs 1065.

Ravi told CNBC-TV18, "The results of TCS in revenue terms are pretty much in line, but in terms of margin contraction it is a little more sever than what I anticipated. The company is not able to improve the utilization rate since the top clients account did not grew in anticipation, it didn’t not grew as much anticipated so definitely to an extent the Q1 results are a bit disappointing. The bigger disappointment was the severity of the treasury loss; I didn’t expect treasury loss of around close to Rs 72 crore, which is a bit surprising."
 
He further added, "I haven’t changed the price target it is at Rs 1065, and I am maintaining with that and I am also giving a buy rating on the stock. I think what is going in the favor of the sector at this point in time is going to be the rupee because it is probably going to keep sliding and if it stabilizes at around Rs 43 levels, companies like TCS should at least get around Rs 2,500 crore of extra revenue just on account of the rupee depreciation itself. So rupee probably on the slide mode, larger IT companies should benefit and as they have a larger operating leverage to play out, I think these companies should be viewed positively in the current environment."