Bhavin Shah, CEO at Equirus Securities told CNBC-TV18, "Tata Consultancy Services (TCS) is very richly valued by historical standards. However, what we are seeing is very strong demand environment in which TCS is the best positioned company today. They have very strong momentum with clients especially with large clients. They are offering in terms of capabilities, in terms of breadth and depth definitely now puts them right at the top."
"As a result, they have sort of gone ahead of their FY14 hiring targets already and then completed that by December which suggests that they are looking at a very strong year ahead. If there has been one issue for us with TCS that has been their working capital. It has been a little bit on a high side and we understand that company is also working to address that. So, that will improve the free cashflows further," he added.
"We think that from these levels taking a March 2015 view TCS can still move up to something close to Rs 2600 which suggests a decent upside from current levels and that is why we are recommending TCS."
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