Accumulate TCS, says Sandeep Shah

Shah told CNBC-TV18, "TCS has guided that they will actually grow in line with National Association of Software and Services Companies (NASSCOM) or faster than NASSCOM whereas Cognizant has of course given a more robust guidance as they have been in the past. Cognizant perhaps is a slightly bigger price warrior than perhaps even TCS has been. TCS’s margins if you look at it are actually now almost in line with Infosys. So they have the flexibility to actually grow their volumes. They did take a 1% price cut in their overall realizations last quarter."

He further added, "So I think that TCS though is perhaps not cheap, so here again you may want to wait for some bad news to buy. But I think TCS have created a fairly solid business model. They have more offshore development centers or onshore development centers than actually most of the other companies have. They are present in more geographies than any other company and they have demonstrated growth across verticals. So TCS is certainly a stock you want to accumulate for the long-term."