Accumulate TCS; target of Rs 2650: Prabhudas Lilladher

Prabhudas Lilladher has recommended accumulate rating on TCS with a target price of Rs 2650 in its research report dated October 13, 2016.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney IThe Winning Leap SME Special
Moneycontrol

Home » News » Recommendations

Oct 18, 2016, 05.55 PM | Source: Moneycontrol.com

Accumulate TCS; target of Rs 2650: Prabhudas Lilladher

Prabhudas Lilladher has recommended accumulate rating on TCS with a target price of Rs 2650 in its research report dated October 13, 2016.

Like this story, share it with millions of investors on M3

Accumulate TCS; target of Rs 2650: Prabhudas Lilladher

Prabhudas Lilladher has recommended accumulate rating on TCS with a target price of Rs 2650 in its research report dated October 13, 2016.

Post Your Comments

Share Cancel

(more)

, Prabhudas Lilladher |


Prabhudas Lilladher's research report on TCS

Tata Consultancy Services' (TCS') Q2FY17 revenues were 1.7% below expectations, while margins were in line with our expectations. Q2FY17 revenues were impacted by a) softness in BFS vertical, b) delay of ramp-ups in retail vertical and c) decline in India. Q2FY17 CC revenues are up only 7% YoY. USD revenues are up 5.2% YoY; however, ~100bps YoY EBIT margin drop resulted in just 1% EBIT growth. BFS growth was soft in the quarter and that could be a cause of concern. Overall, TCS had an unusually slow H1 led by cyclical challenges. Management expects H2FY17 to be better than historical trend. Management is also confident of return to higher growth once the cyclical challenges abate.

We have marginally tweaked our EPS estimates and retain our below consensus earnings estimates and "Accumulate" rating with a target price of Rs2,650 (earlier Rs 2,685) based on 18x Sep-18 EPS. Short-term challenges aside, we like TCS for its best-in-class execution, early investments in digital and leadership in most business segments. TCS remains well poised to grow at or above industry growth in the medium-to-long term.

For all recommendations, click here

Disclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.


To read the full report click here

Buy, Hold, Sell ? Hear it first on M3
Accumulate TCS; target of Rs 2650: Prabhudas Lilladher

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login