Information technology major TCS reported disappointing revenue numbers in the second quarter but analysts tracking the stock are not much surprised considering the entire industry is facing multiple challenges structurally.
Commenting on the results, Karan Taurani, Senior Analyst at Dolat Capital told CNBC-TV18 none of the large cap companies are likely to grow revenues more than 8-9 percent this year.
While TCS did manage to surprise on the margins front, Taurani and Sarabjit Kour Nangra, VP - Research at Angel Broking believe it could have come from productivity gains, which may not be sustainable for long.
Apurva Prasad, IT Research Analyst at HDFC Securities says growth still remains a concern with TCS and "focus should currently be on growth than margins."
While Nangra feels most of the growth concerns are priced into the stock, Dilip Bhat, Joint MD at Prabhudas Lilladher has a differing view. He feels there is scope for the stock to lose another 8-10 percent at which point investors might choose to pick it up as a defensive bet.
Moshe Katri, Managing Director at Wedbush Securities says it might take a long time for the companies to adapt to technological advances as it involves changes to the entire business model. Prakash Diwan of prakashdiwan.in does not expect any major hit on the stock in trade Friday. Watch video for more...
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