ICICI Direct's research report on Tata Consultancy Services
Tata Consultancy Services (TCS) reported a healthy set of Q3FY21 numbers that were above our estimates on all fronts. Growth happened across geographies and verticals. The QoQ growth in revenues was led by healthy demand in core transformation services and conversion from earlier deals. US$ revenues grew 5.1% QoQ to $5,702 million, above our estimate of 3.6% QoQ growth and $5,619 million estimate. EBIT margins expanded 42 bps QoQ to 26.6%, above our estimates of 25.1%. TCS has declared an interim dividend of Rs 6 per share. The company aspires to register double digit revenue growth in FY22E.
Outlook
Hence, we maintain our BUY rating on the stock with a revised target price of Rs 3,600/share (PE of 29x on FY23E EPS) (from an earlier target price of Rs 3,410).
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.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
Read More
