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Last Updated : Sep 18, 2018 04:59 PM IST | Source: Moneycontrol.com

Hold Tata Consultancy Services; target of Rs 1943: Edelweiss

Edelweiss recommended hold rating on Tata Consultancy Services with a target price of Rs 1943 in its research report dated July 10, 2018.

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Edelweiss' research report on Tata Consultancy Services

Tata Consultancy Services (TCS) reported Q1FY19 revenue and operating margin of USD5,051mn (up 1.6% QoQ, 4.1% in cc) and 25.0%, respectively, exactly in line with our estimates and ahead of Street’s. Key highlights: 1) strong BFSI revival—up 3.7% QoQ; 2) best Q1 growth of ~10% YoY in last three years; and 3) robust growth in UK and Europe of ~19% YoY.

Outlook

However, despite the sector-leading multiple of 22x FY20E EPS (20x earlier), CMP (21.2x FY20E EPS) factors in all positives. Maintain ‘HOLD/SP’ with a revised target price of INR1,943 (INR1,661 earlier).

For all recommendations report, click here

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First Published on Jul 13, 2018 05:20 pm
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