Sharekhan's research report on Tata Consultancy Services
Revenues grew by 4% q-o-q and 15.4% y-o-y in CC terms ahead of our expectations of a 3.1% q-o-q growth and street expectations of 3.5%. Despite intensifying macro headwinds, management seems comfortable on demand visibility. Expect H2 to witness normal seasonality as seen in the earlier years owing to furloughs. Management remains watchful of the situation. EBIT margin stood at 24% vs our estimate of 23.6%, rising by 90 bps q-o-q. Beat was led by better operational efficiencies and productivity. Management remains optimistic on achieving 25% EBIT margin by Q4 FY2023 as supply-side pressure is easing.
Outlook
We maintain a Buy on TCS with an unchanged PT of Rs. 3,650 given comforting demand commentary, scope of margin improvement and undemanding valuations.
More Info
At 10:56 hrs Tata Consultancy Services was quoting at Rs 3,066.40, down Rs 54.80, or 1.76 percent.
It has touched an intraday high of Rs 3,144.55 and an intraday low of Rs 3,054.75.
It was trading with volumes of 1,287,110 shares, compared to its thirty day average of shares, a decrease of percent.
In the previous trading session, the share closed up 1.84 percent or Rs 56.25 at Rs 3,121.20.
The share touched its 52-week high Rs 4,045.50 and 52-week low Rs 2,926.00 on 18 January, 2022 and 26 September, 2022, respectively.
Currently, it is trading 24.2 percent below its 52-week high and 4.8 percent above its 52-week low.
Market capitalisation stands at Rs 1,122,011.51 crore.
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