TCS may test Rs 2525; Infosys, Tech Mahindra top pick: Kotak

Kawaljeet Saluja, Executive Director & Head of Research at Kotak Institutional Equities told CNBC-TV18, "Tata Consultancy Services' margin band is 26-28 percent but they have always maintained that if the market demands them to take a hit on margins for future growth, they are more than willing to. However, I do not think the business dynamics are such that TCS would have to compromise on 26-28 percent. So what the management was essentially alluding to is that they are no fixated on margin band. If the business environment changes, which requires them to take a hit on profitability, they are more than willing to." "Our fair value is Rs 2,525 which is 10 percent upside from the current level. Our pecking order in the sector is Infosys, it is our top pick followed by Tech Mahindra," he said.