Buy TCS; target Rs 1893: Firstcall Research
Brokerage house Firstcall Research is bullish on Tata Consultancy Services (TCS) and has recommended buy rating on the stock with a target price of Rs 1893 in its July 22, 2013 research report.
July 23, 2013 / 12:39 IST
Firstcall's research report on Tata Consultancy Services (TCS)
"TCS' net profit jumps to Rs.38306.40 million against Rs.33176.80 million in the corresponding quarter ending of previous year, an increase of 15.46 percent. Revenue for the quarter rose 20.97 percent to Rs.179870.70 million from Rs.148687.10 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.19.57 a share during the quarter, registering 15.46 percent increase over previous year period. EBITDA is Rs.182455.60 millions as against Rs.150549.70 millions in the corresponding period of the previous year."Outlook and Conclusion: "At the current market price of Rs.1736.20, the stock P/E ratio is at 16.08 x FY14E and 13.92 x FY15E respectively. Earning per share (EPS) of the company for the earnings for FY14E and FY15E is seen at Rs.84.35 and Rs.97.44 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 21 percent and 22 percent over 2012 to 2015E respectively. On the basis of EV/EBITDA, the stock trades at 11.57 x for FY14E and 10.03 x for FY15E. Price to Book Value of the stock is expected to be at 5.51 x and 4.52 x respectively for FY14E and FY15E. TCS is helping enterprises to standardise, rationalise and transform their business operations to become operationally efficient and remain cost competitive in the market place. The Company is working closely with its customers, helping them to gain deeper insights into their customers' needs and enabling them to realign their offerings accordingly. We recommend 'BUY' in this particular scrip with a target price of Rs 1893 for Medium to Long term investment," says Firstcall Research report.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. 
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