Accumulate TCS; target of Rs 3000: Dolat Capital

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Dolat Capital`s research report on Tata Consultancy Services“Post the earnings call we turn incrementally positive on TCS in view of its sustained confident stance on the business outlook supported by its confidence on its client’s budgets (expects trends to continue in CY15 as well), strong deal intake across the verticals/geos, deal win across traditional as well as digital/SMAC areas and also view on the discretionary demand. It also has a well-planned strategy in terms of geographic drive up in regions such as Japan (Mitsubishi deal), LATAM and Nordics which would ensure strong incremental revenue run rates. We maintain TCS as our preferred Pick among Tier I IT space and expect it to maintain its outperformance over peers in the near term given its strong deal pipeline and broad based performance factor with a Target price of Rs 3000 valued at 24x of its FY16E earnings.” “TCS’s delivered better than expected operating results with a topline growth of 6.4% driven by 6.1% volume growth at $3.9bn. Revenues were up by 7.4% in constant currency terms. Growth was strong across the verticals/service lines and Geographies and management expect sustained momentum across the board over next couple of quarters. It is confident to maintain strong momentum given its strong client intimacy, Order book, quality of engagement, its bouquet of offering in the digital space and ability to execute in terms of talent/domain strength. It has planned to amalgamate CMC with share transfer of 100 TCS share for 79 shares in CMC – likely to be done by year end. The amalgamation would not have any major financial implications as it is 51% subsidiary already and given the current swap ratio it would be marginally EPS accretive.” “The company is witnessing higher demand for its service delivery model and better/ faster closure on deals across the verticals and geographies. The financial performance has been rising high over and above peers at all parameter reflecting the delivery strength, lead in the fast growing Digital space, and focused client strategy along with disciplined marketing investments. We believe it to continue to remain best player among the Tier I space to leverage the improving demand outlook also its strong volume confidence of 16%+ would keep it immune of any risk on sharp Rs appreciation to a large extent and thus we maintain TCS as our preferred Pick among Tier I IT players with a Target price of Rs 3000 valued at 24x of its FY16E earnings,” says Dolat Capital research report.

For all recommendations, 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.

Read More