Moneycontrol
Apr 20, 2017 05:04 PM IST | Source: Moneycontrol.com

Hold TCS; target of Rs 2395: Edelweiss

Edelweiss recommended hold rating on TCS with a target price of Rs 2395 in its research report dated April 18, 2017.

Hold TCS; target of Rs 2395: Edelweiss

Edelweiss' research report on TCS


Tata Consultancy Services’ (TCS) Q4FY17 revenue at USD 4,452mn, moved up 1.5% QoQ versus 1.6% Street estimate. EBIT margin at 25.7% (down 30bps QoQ) came below Street’s estimate of 26.0%. Revenue miss was due to the decline in retail and US markets, while margin miss was led by currency volatility.


Outlook


We continue to believe that limited margin levers will cap TCS’ earnings growth to revenue growth. Maintain ‘HOLD’ with revised TP of INR 2,395 (INR 2,475 earlier).


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