Sharekhan has given Buy recommendation for Tata Consultancy Services with a target price of Rs. 3800 in its research report issued on Jun 16, 2022
Sharekhan’s research report on Tata Consultancy Services
Demand stayed robust led by higher spending on growth & transformation (G&T) initiatives, technologies and operations. G&T initiatives are likely to offer TCS huge growth opportunities given its robust contextual knowledge and full service model. TCS has a proven track record of gaining market share in the fragmented IT industry across cycles. Hence, we believe TCS will be considered as a preferred partner for any strategic vendor consolidation exercise in an inflationary environment. Margin levers such operating leverage, pyramid balancing, improved realisations and currency tailwinds are expected to offset the margin headwinds to a large extent in FY2023. COLA and better pricing would drive margin gradually. We continue to prefer TCS led by its robust business model, healthy order intake, excellent payout ratios and a strong client base.
Hence, we maintain a Buy on the stock with a revised PT of Rs. 3,800.
At 14:19 hrs Tata Consultancy Services was quoting at Rs 3,049.80, down Rs 92.55, or 2.95 percent.
It has touched an intraday high of Rs 3,110.55 and an intraday low of Rs 3,023.35.
It was trading with volumes of 237,370 shares, compared to its thirty day average of 120,495 shares, an increase of 97.00 percent.
In the previous trading session, the share closed down 2.01 percent or Rs 64.45 at Rs 3,142.35.
The share touched its 52-week high Rs 4,045.50 and 52-week low Rs 3,133.20 on 18 January, 2022 and 28 July, 2021, respectively.
Currently, it is trading 24.61 percent below its 52-week high and 2.66 percent above its 52-week low.
Market capitalisation stands at Rs 1,115,937.49 crore.