Buy TCS; target of Rs 1328: Firstcall Research

99811 Investors following TCS. Share this News with them.

0

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

Buy TCS; target of Rs 1328: Firstcall Research

Firstcall Research is bullish on Tata Consultancy Services (TCS) and has recommended buy rating on the stock with a target of Rs 1328 in its December 3, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Buy BHEL; target Rs 400: Hedge Equities Buy Siyaram Silk Mills; target Rs 296: Firstcall Research Buy Coal India at every dip: R K Global ALSO READ See previous views by Firstcall Research See what other Experts & Brokerages are saying about TCS See messages about TCS TCS BSE | NSE 29/05/12 Are Mutual Funds betting on TCS?

Firstcall Research is bullish on Tata Consultancy Services (TCS) and has recommended buy rating on the stock with a target of Rs 1328 in its December 3, 2011 research report.

"Established in 1968, Tata Consultancy Services (TCS), a member of the Tata Group is considered as the largest IT services firm in Asia based on its record of outstanding service, collaborative partnerships, innovation and corporate responsibility. TCS Ltd. is an Indian IT services, business solutions and outsourcing company headquartered in Mumbai, India. The service is delivered through its unique Global Network Delivery Model™ (GNDM), recognized as the benchmark of excellence in software development. TCS has over 214,000 of the world's best-trained consultants in 42 countries. The company has generated consolidated revenues of US $8.2 billion for year ended March 31, 2011. It is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India."

"TCS Ltd has reported consolidated net profit of Rs 23010.00 million for the quarter ended on September 30, 2011 as against Rs 21692.10 million in the same quarter last year, an increase of 6.08%. It has reported net sales of Rs 116334.90 million for the quarter ended on September 30, 2011 as against Rs 92863.90 million in the same quarter last year, a rise of 25.27%. Total income grew by 33.42% to Rs.117561.80 million from Rs. 93571.40 million in the same quarter last year. During the quarter, it reported earnings of Rs 11.76 a share, registering 6.08% growth over prior year period. During the quarter, Net sales rose by 25.27% to Rs. 116334.90 million from Rs.92863.90 million in the same quarter last year and the Total Profit for the quarter ended September 2011 was Rs. 23010.00 million grew by 6.08% from Rs.21692.10 million compared to same quarter last year."

"At the current market price of Rs.1175.50, the stock is trading at 22.60 x FY12E and 19.34 x FY13E respectively. Earning per share (EPS) of the company for the earnings for FY12E and FY13E is seen at Rs.52.01 and Rs. 60.78 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 21% and 19% over 2010 to 2013E respectively. On the basis of EV/EBITDA, the stock trades at 16.19 x for FY12E and 13.92 x for FY13E. Price to Book Value of the stock is expected to be at 6.63 x and 4.93 x respectively for FY12E and FY13E. We expect that the company will keep its growth story in the coming quarters also. We recommend 'BUY' in this particular scrip with a target price of Rs 1328 for medium to long term investment," says Firstcall Research report. 

Bodies Corporate holding more than 50% in Indian cos

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 on the attachment