Geojit has given Buy recommendation for Tata Consultancy Services with a target price of Rs. 4457 in its research report issued on Jan 17, 2022
Geojit’s research report on Tata Consultancy Services
Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization that provides a comprehensive range of IT services to its clients in industries. The Company caters to finance and banking, insurance, telecommunication, and transportation among others. Q3FY22 revenue up 16.4% YoY (+4.3% QoQ, +15.4% YoY on constant currency (CC) basis) as segments continued to record strong growth. EBIT margin recorded a 60bps sequential contraction to 25.0% owing to increase in backfilling costs, targeted increments and subcontractor expenses. PAT however surged 12.3% YoY on higher other income. Company added 28,238 new employees during Q3FY22 bringing the total headcount to 556,986. Attrition in the quarter stood at 15.3%. Company managed to sustain its strong growth momentum, recording robust performance across all verticals, with pace expected to continue in the coming quarters.
We reiterate our BUY rating on the stock with a rolled forward target price of Rs. 4,457 based on 33x FY24E adj. EPS.