TCS: Blended views on TCS on weak Q3 margins

MUMBAI: Brokerages have combined views on Tata Consultancy Companies because the IT firm posted better-than-expected revenues within the December quarter however missed margin estimates.

Whereas Credit score Suisse, Jefferies, Bernstein, Nomura and BNP Paribas elevated their goal worth for TCS, Goldman Sachs decreased it. JP Morgan and Morgan Stanley maintained their goal costs.

Whereas sustaining a ‘maintain’ score with a goal worth of ₹4,180, Jefferies mentioned TCS’s wealthy multiples provide restricted scope for revaluation relative to its development. “The corporate posted first rate development, although weak margins disillusioned,” the agency mentioned.

Morgan Stanley mentioned there’s higher development than miss margin. It added that income development after a niche of two quarters is stunning, which ought to result in some optimism in the direction of the inventory. Morgan Stanley sees room for an upside valuation and has a goal of ₹4,400 on the inventory.

In response to Edelweiss, TCS delivered sturdy development numbers, and the general pipeline stays sturdy. “We imagine core transformation demand stays sturdy, and that is prone to drive sturdy earnings development with exemplary execution,” Edelweiss mentioned in a be aware.

Given the sturdy development outlook, Motilal Oswal has maintained a constructive stance on TCS. The brokerage, whereas decreasing its FY22, mentioned, “We’re inspired by sturdy topline development within the seasonally weak quarter. We anticipate this efficiency to offset its development potential and potential pullback from an rising share of small offers out there.” will cut back it.” EPS 2%.

Shares of TCS rose 1.05% to ₹3,897.65 on Thursday.

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