IT shares shares extend fall on outlook worries

Indian technology shares fall for a second day, with Cognizant's SEC filing clouding revenue outlook for the sector.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Travelcafe
moneycontrol.com
SENSEX NIFTY

Home » News » Business

Dec 06, 2012, 12.25 PM | Source: Reuters

IT shares shares extend fall on outlook worries

Indian technology shares fall for a second day, with Cognizant's SEC filing clouding revenue outlook for the sector.

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

IT shares shares extend fall on outlook worries

Indian technology shares fall for a second day, with Cognizant's SEC filing clouding revenue outlook for the sector.

Post Your Comments

Share Cancel

IT shares shares extend fall on outlook worries
Indian technology shares fall for a second day, with Cognizant's SEC filing clouding revenue outlook for the sector.

Cognizant Technology Solutions Corp , in a filing to the SEC on Tuesday, said its top executives will receive 100 percent of their performance-linked shares if the company achieves revenue of USD 8.5 billion next year, a 16 percent rise over its projected 2012 revenue.

The filing implies that CY13 growth would be lower than the company's outlook for CY12.

"Based on historical trends, Cognizant's annual guidance corresponds with revenue growth corresponding to 100 percent of performance units," IDFC said in a note.

Barclays Capital, however, feels that while Cognizant may see a slowdown, it does not pose an incremental risk to Barclays' FY14 growth forecasts of 15 percent for TCS and 13 percent for HCL Tech.

"Cognizant's growth premium to Indian IT vendors has diminished in the past two years due to its larger revenue and growth base," Barclays Capital said in a note.

An additional negative may come from the rupee. Credit Agricole believes the government winning the vote on foreign direct investment in multi-brand retail will continue to help rupee. It expects the rupee could rise to 52 per dollar by end 2013.

Infosys  down 2.4 percent, Tata Consultancy Services is down 2 percent, while HCL Technology is down 2.1 percent.

TCS stock price

On May 06, 2016, Tata Consultancy Services closed at Rs 2472.15, down Rs 1.85, or 0.07 percent. The 52-week high of the share was Rs 2769.00 and the 52-week low was Rs 2119.00.


The company's trailing 12-month (TTM) EPS was at Rs 115.69 per share as per the quarter ended March 2016. The stock's price-to-earnings (P/E) ratio was 21.37. The latest book value of the company is Rs 346.63 per share. At current value, the price-to-book value of the company is 7.13.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
IT shares shares extend fall on outlook worries

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