Geojit has given Buy recommendation for Tata Consultancy Services with a target price of Rs. 3635 in its research report issued on Oct 13, 2022

Geojit’s research report on Tata Consultancy Services

Tata Consultancy Services (TCS), a subsidiary of Tata Sons Ltd, is a global IT services organisation. It provides a comprehensive range of services to its clients in diverse industries. The company caters to finance and banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical and utility industries. Revenue of TCS in Q2FY23 grew a significant 18.0% YoY to Rs 55,309 cr, mainly due to solid gains across verticals. Operating margin expanded 90 bps QoQ to 24.0% (-160 bps YoY), supported by operational efficiencies, improved realisations and favourable currency changes. The PAT margin stood at 18.9%. Despite the economic headwinds in the quarter, TCS rebounded on strong demand for its services. The growth was primarily driven by higher demand for cloud platforms and continued customer interest in technology services as reflected in deal wins.


We expect revenue to rise further, supported by operating efficiencies and cost optimisation. We upgrade our rating to BUY on the stock with a revised target price of Rs 3,635 based on 28x FY24E adjusted EPS.

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At 16:01 hrs Tata Consultancy Services was quoting at Rs 3,097.65, down Rs 3.40, or 0.11 percent.

It has touched an intraday high of Rs 3,149.00 and an intraday low of Rs 3,071.05.

It was trading with volumes of 127,684 shares, compared to its thirty day average of 233,720 shares, a decrease of -45.37 percent.

In the previous trading session, the share closed up 0.01 percent or Rs 0.30 at Rs 3,101.05.

The share touched its 52-week high Rs 4,045.50 and 52-week low Rs 2,926.00 on 18 January, 2022 and 26 September, 2022, respectively.

Currently, it is trading 23.43 percent below its 52-week high and 5.87 percent above its 52-week low.

Market capitalisation stands at Rs 1,133,446.05 crore.

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