Sharekhan's research report on Tata Consultancy Services
Q4FY21 was the third consecutive quarter of strong all-round performance, led by robust demand, market share gains and deal ramp-ups. Deal win TCVs remained highest for a quarter. Continued investments in building newer capabilities, relationships and talent help TCS capture opportunities in growth and transformation related spends. USD revenue and earnings are likely to clock a 12%/17% CAGR over FY2021-23E; we prefer TCS on account of its full-service business model, solid execution and higher payout policy.
Outlook
We maintain a Buy rating on TCS with a revised PT of Rs. 3,750, given its full service model to increase its share in the growth and transformation opportunity and industry-leading profitability.
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