While maintaining reduce call on the stock and raising target to Rs 2,020 (from Rs 1,900), Kotak Institutional Equities cut its revenue growth forecast marginally, but raised EBIT margin forecast by 20-30 bps.
For Q3FY20, Motilal Oswal expects a 2.3% YoY or 3.3% QoQ rise in the PAT for TCS to the tune of Rs 8,305 crore.
Net Sales are expected to increase by 2.1 percent Q-o-Q (up 6.6 percent Y-o-Y) to Rs. 39,788.5 crore, according to Motilal Oswal.
Key things to watch out for would be increase in deal sizes & tenures in digital; demand commentary, specifically BFSI & retail; and commentary on the improving geopolitical scenario.
Credit Suisse has trim revenue estimates by 1 percent and EPS estimates by 5-7 percent adding that the company has a high-quality franchise but is not immune to an uncertain environment.
With an increase of 5.7 percent, revenue from operations stood at Rs 38,977 crore in the September quarter of FY20 against Rs 36,864 crore in the same quarter of the previous year.
Net Sales are expected to increase by 3.6 percent Q-o-Q (up 7.3 percent Y-o-Y) to Rs. 39,536.6 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 2.7 percent Q-o-Q (up 6.4 percent Y-o-Y) to Rs. 39,206.7 crore, according to Motilal Oswal.
Nifty companies will deliver revenue growth of 5.2 percent and net profit growth of 8.2 percent for Q1FY20
Prabhudas Lilladher expects EBIT margins to decline around 90bps on account of wage hike, INR appreciation and visa cost
Net Sales are expected to increase by 1.3 percent Q-o-Q (up 12.4 percent Y-o-Y) to Rs. 38,513.2 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 1.4 percent Q-o-Q (up 12.5 percent Y-o-Y) to Rs. 38,559.2 crore, according to Kotak.
The return on Equity for Infosys is expected to increase from 20.7 percent in FY17 to 24.3 percent in FY20 while for TCS, the RoE is expected to increase marginally from 33.5 percent in FY17 to 34.8 percent in FY20.
Profit for the quarter is expected to decline in the range of 2-6 percent sequentially while operating margin is likely to be steady or see marginal contraction quarter-on-quarter in Q4.
But non-auto consumer discretionary companies like Titan and Zee Entertainment are expected to report relatively stronger growth, Deutsche said.
Net Sales are expected to increase by 1.3 percent Q-o-Q (up 17.9 percent Y-o-Y) to Rs. 37,808.6 crore, according to Prabhudas Lilladher.
Net Sales are expected to increase by 1.2 percent Q-o-Q (up 22.3 percent Y-o-Y) to Rs. 37,785.4 crore, according to Kotak.
CLSA said strong growth in US is positive for most firms, but more for Infosys & Cognizant while strong growth in CMT is positive for Tech Mahindra, Wipro & HCL Technologies
Kotak advised adding HCL Technologies, L&T Infotech, Mindtree and Tech Mahindra which could return 8-12 percent
With the hefty payout limiting downside, we recommend buying Infosys
We expect modest return from the stock in the medium term and recommend accumulation only on correction.
Net Sales are expected to increase by 23.5 percent Y-o-Y (up 3.5 percent Q-o-Q) to Rs. 38,159.4 crore, according to Dolat Capital.
Net Sales are expected to increase by 24.3 percent Y-o-Y (up 4.2 percent Q-o-Q) to Rs. 38,401.8 crore, according to ICICI Direct.
Edelweiss estimates that TCS will deliver QoQ revenue growth of 2.2 percent in constant currency terms and 1.6 percent in US dollar terms.