Geojit's research report on Tata Consultancy Services
Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization that provides a comprehensive range of IT services to its clients in industries. The Company caters to finance and banking, insurance, telecommunication, and transportation among others. Q3FY22 revenue up 16.4% YoY (+4.3% QoQ, +15.4% YoY on constant currency (CC) basis) as segments continued to record strong growth. EBIT margin recorded a 60bps sequential contraction to 25.0% owing to increase in backfilling costs, targeted increments and subcontractor expenses. PAT however surged 12.3% YoY on higher other income. Company added 28,238 new employees during Q3FY22 bringing the total headcount to 556,986. Attrition in the quarter stood at 15.3%. Company managed to sustain its strong growth momentum, recording robust performance across all verticals, with pace expected to continue in the coming quarters.
Outlook
We reiterate our BUY rating on the stock with a rolled forward target price of Rs. 4,457 based on 33x FY24E adj. EPS.
More Info
At 15:59 hrs Tata Consultancy Services was quoting at Rs 3,990.25, down Rs 28.85, or 0.72 percent.
It has touched an intraday high of Rs 4,045.50 and an intraday low of Rs 3,981.00.
It was trading with volumes of 110,328 shares, compared to its thirty day average of 118,298 shares, a decrease of -6.74 percent.
In the previous trading session, the share closed up 1.26 percent or Rs 49.85 at Rs 4,019.10.
The share touched its 52-week high Rs 4,043.00 and 52-week low Rs 2,701.00 on 17 January, 2022 and 24 February, 2021, respectively.
Currently, it is trading 1.3 percent below its 52-week high and 47.73 percent above its 52-week low.
Market capitalisation stands at Rs 1,476,013.97 crore.For all recommendations report, click here
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