Hold TCS; target of Rs 2530: Centrum

Centrum recommended hold rating on TCS with a target price of Rs 2530 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 17, 2016, 05.30 PM | Source: Moneycontrol.com

Hold TCS; target of Rs 2530: Centrum

Centrum recommended hold rating on TCS with a target price of Rs 2530 in its research report dated October 13, 2016.

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

Hold TCS; target of Rs 2530: Centrum

Centrum recommended hold rating on TCS with a target price of Rs 2530 in its research report dated October 13, 2016.

Post Your Comments

Share Cancel

Centrum Broking (more)

, Centrum Broking |


Centrum's research report on TCS

TCS delivered a USD revenue miss in the seasonally strong quarter led by softness in core verticals and weaker traction in developed markets. However, strong EBIDTA margins and higher other income led to PAT beat our estimates by 4.5%. Tepid traction in developed markets in the seasonally strong quarter (UK down 0.1% QoQ in cc, North America up 1.4% in cc) is key negative. Core verticals( BFSI, Retail, CPG) stumbled owing to weak discretionary spend and delay and postponement in decision making . While TCS cited that 2HFY17 could relatively be better than 2HFY16, we believe that this still doesn’t suffice to compensate for the 2Q revenues miss.  We downgrade our USD revenue growth estimate to 7.2% for FY17 (vs 10.5% modelled earlier). This is led by steep 2Q revenues miss and cross currency woes. We revise our EPS estimates to Rs 133.5/144.5/sh which represents a 0.6/3.6% downgrade in our estimates. Our earnings cut is predominantly led to downgrade in USD revenue growth assumptions.  Our TP is revised lower by 4% to Rs 2530/sh (17.5x FY18E EPS) led by earnings downgrade.  Maintain Hold.

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
Hold TCS; target of Rs 2530: Centrum

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