Buy Tata Consultancy Services; target of Rs 3882: Religare Retail Research

Religare Retail Research is bullish on Tata Consultancy Services has recommended buy rating on the stock with a target price of Rs 3882 in its research report dated April 13 2023.

Broker Research

April 13, 2023 / 18:11 IST

Buy

26 Aug, 2025 12:21

Volume

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Religare Retail Research report on Tata Consultancy Services

TCS revenue in rupee term came in at Rs 59,162cr, up by 1.6% QoQ, below our expectation of 3.5% growth QoQ, while it grew by 16.9% YoY. Its dollar revenue stood at USD 7,195Mn, up by 1.7% QoQ and 7.5% YoY. The growth in revenue was because of continuous demand from cloud and data transformation services along with growth in Europe region as well as growth from Retail and Life Science & Healthcare segment. Further for FY23, rupee revenue grew by 17.6% to Rs 2,25,458cr while dollar revenue came at USD 27,927Mn with a growth of 8.6% YoY and it also witnessed a growth of 13.7% in constant currency for the year.

Outlook

However, in the near term there may be some challenges for orders from BFSI and the American region but things will improve from a medium to long term perspective. Thus, we have estimated its revenue/EBIT to grow at 16.1/18.2% CAGR over FY23-25E and have maintained a Buy rating with a target price of Rs 3,882.

For all recommendations report, click here