TCS has target of Rs 1580: JM Financial

Tata Consultancy Services (TCS) has target of Rs 1580, says Govind Agarwal, Senior Analyst - IT Sector at JM  Financial.

Agarwal told CNBC-TV18, "Even though TCS has run up in the last few days, over the next six months we expect  about 15 percent upside. Our price target is now Rs 1,580 based on 17 times FY15 earnings per share (EPS). We  have raised our EPS around 6 percent for 14 and 15 each."
He further added, "FY14 is now Rs 82 and FY15 is about Rs 93. We are ahead of the street by almost 6 percent on  both 14 and 15. I think the street should go to these numbers over the next two quarters and the bigger delta will come  in terms of discretionary spending coming back in calendar year '13. So, that should be a revenue boost for fiscal '14.  There was hardly any discretionary spend in the last calendar year in the industry and now discretionary spending is  coming back."
"One common theme in both TCS and Infosys' results was consulting, which grew by 8 percent for Infosys and 5  percent for TCS. So, it is a positive sign for overall growth and it should boost FY14 growth to more than 15 percent for  TCS."