Buy Tata Consultancy Services; target of Rs 4200 Sharekhan

Sharekhan is bullish on Tata Consultancy Services has recommended buy rating on the stock with a target price of Rs 4200 in its research report dated November 29, 2023.

Broker Research

November 30, 2023 / 20:45 IST

Buy

26 Aug, 2025 12:21

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Sharekhan's research report on Tata Consultancy Services

Buyback Details (October 2023): TCS announced a buyback of Rs 17,000 crore at a premium price of Rs 4,150 per share through the tender route. Opportunity for small shareholders: Shareholders with a maximum of 57 shares as on the record date (25-Nov-2023) could participate in the buyback and benefit from the gap in current market price and buyback price. Expected Acceptance Ratio: Official entitlement ratio is ~17% based for small investors. However, the past experience shows that all shareholders do not participate in buyback and the final acceptance ratio could be at 30-35%. Investor Strategy Post-Buyback: Given the potential acceptance ratio and possible upside for retail/small investors, it is advisable to tender shares in buyback. After the buyback, investors have the option to reinvest in the same number of accepted shares at relatively lower prevailing market price.

Outlook

Fundamentally, we have Buy rating on TCS, with an unchanged Price Target (PT) of Rs. 4,200.

For all recommendations report, click here