TCS: Combined 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 value for TCS, Goldman Sachs decreased it. JP Morgan and Morgan Stanley maintained their goal costs.

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

Morgan Stanley mentioned there’s higher progress than miss margin. It added that income progress after a spot of two quarters is shocking, 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 line with Edelweiss, TCS delivered robust progress numbers, and the general pipeline stays robust. “We imagine core transformation demand stays robust, and that is prone to drive robust earnings progress with exemplary execution,” Edelweiss mentioned in a observe.

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

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

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