Dolat Capital recommended accumulat rating on Tata Consultancy Services with a target price of Rs 2100 in its research report dated January 10, 2019.
Dolat Capital's research report on Tata Consultancy Services
TCS reported a USD revenue growth of 0.7% QoQ (1.8% QoQ in CC terms) to USD 5,250 million (DCMe: USD 5,298 million), a marginal rise due to cross currency headwind. INR revenue grew 1.3% QoQ at ` 373.4 billion (DCMe: ` 381.6 billion), helped by INR depreciation. The EBIT margin declined 90bps QoQ at 25.6% (DCMe: 26.7%), due to the negative impact of cross currency movement and cost on account of headcount addition, which offset the positive impact of rupee depreciation. PAT grew 2.6% QoQ to ` 81.1 billion (DCMe: ` 82.7 billion) as other income rose.
TCS is currently trading at a fair valuation of 20.3x/17.6x based on FY20/FY21 earnings. However, the stock has corrected by 5% from our last quarter update, which leads us to upgrade the stock to ACCUMULATE with a TP of ` 2,100 based on 20x rolling one-year fwd. PER.
For all recommendations report, 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.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.