172@29@17@137!~!172@29@0@53!~!|news|business|stocks|buy-tata-consultancy-services-target-of-rs-3300-icici-direct-5937801.html!~!news|moneycontrol|com!~!|controller|infinite_scroll_article.php!~!is_mobile=false
Moneycontrol
Subscribe to Moneycontrol Pro and get 365 bonus InterMiles! Use Code: INTERMILES
Last Updated : Oct 08, 2020 03:50 PM IST | Source: Moneycontrol.com

Buy Tata Consultancy Services; target of Rs 3300: ICICI Direct

ICICI Direct is bullish on Tata Consultancy Services recommended buy rating on the stock with a target price of Rs 3300 in its research report dated October 08, 2020.

Broker Research

ICICI Direct's research report on Tata Consultancy Services


Tata Consultancy Services (TCS) reported healthy Q2FY21 results that were above our estimates. The company reported 4.8% QoQ growth in dollar revenues (in constant currency terms), above our estimate of 2.6% QoQ growth. The growth was broad based across geographies and verticals. Margins increased 260 bps mainly due to an improvement in gross margins and lower SG&A expenses. The TCS board has approved a buyback of Rs 16,000 crore to buy back ~5.33 crore shares at Rs 3,000/share. The company has also declared an interim dividend of Rs 12/share (the record date is October 15, 2020 while payment date is November 3, 2020).


Outlook


Hence, we now assign 28x P/E to the company’s FY23E EPS. Based on this, we arrive at a target price of Rs 3300/share and upgrade the stock from HOLD to BUY.


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.

First Published on Oct 8, 2020 12:21 pm
Sections