ICICI Direct has given Buy recommendation for Tata Consultancy Services recommended buy rating on the stock with a target price of Rs 4530 in its research rep with a target price of Rs. 4530 in its research report issued on Oct 10, 2021
ICICI Direct’s research report on Tata Consultancy Services
Tata Consultancy Services (TCS) is one of the leading IT service providers with a presence in BFSI, communication, manufacturing, retail & hi tech. Consistent organic revenue growth and industry leading margins (>25%) • Stable management, robust return ratios (>RoCE 40%) & payouts (~70%). TCS’ share price has grown by ~3.6x over the past five years (from ~Rs 1,077 in October 2016 to ~Rs 3,976 levels in October 2021).
Outlook
We continue to remain positive and retain our BUY rating on the stock. We value TCS at Rs 4,530 i.e. 34x P/E on FY23E EPS.