Tata Consultancy Services Ltd. News and Updates

Name: Latest research reports of Tata Consultancy Services Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Tata Consultancy Services Ltd.
Rating: 1
Author: HDFC Securities

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Tata Consultancy Services Ltd.

17 Apr 2020

3463.40

-0.99%

Tata Consultancy Services (4QFY20): Tough times ahead. Maintain REDUCE

Sell: Tata Consultancy Services ...

Recommendation Target

HDFC Securities

We continue to believe that TCS' trinity of growth-scale-durability is challenged as risks to large deal ramp-up and cut in discretionary spend have increased. While TCS' supply metrics are resilient, demand dent is overwhelming with a deeper NorthAm/BFS impact and limited exposure to higher velocity verticals. Gains arising out of vendor consolidation/market-share, pipeline conversion and new business opportunities (accelerated cloud migration, remote solution & cybersecurity) will be offset by cuts to IT budgets, we've factored 6.1/8.5% decline in FY21 Rev/PAT. Valuations at 19.4x FY22E is in-line with its 10-yr avg. We maintain REDUCE on TCS following a miss on rev and slightly better operating performance. Demand-related factors to worsen while supply constraints are expected to recover ahead. The parallels to GFC are apparent (similar trajectory expected in 1HFY21), although this will be more broad-based. TCS estimation of recovery in 3Q-4QFY21 is a steep ask in context of 1HFY21 decline, but premised on its order-book and pipeline. Our TP of Rs 1,680, is based on 19x FY22E EPS (~5% cut in EPS est).

Tata Consultancy Services Ltd. is trading below all available SMAs

Tata Consultancy Services Ltd.

17 Apr 2020

3463.40

-0.99%

Tata Consultancy Services

Hold: Tata Consultancy Services ...

Target

ICICI Securities Limited

Tata Consultancy Services (TCS) reported a poor set of Q4FY20 numbers on the back of challenges posed by Covid-19. Revenues across geographies declined QoQ. Vertical wise, revenue declined in BFSI, retail and manufacturing. The decline in BFSI was due to supply side challenges and lower client approval on work from home. On the deal front, TCS won TCV worth US$8.9 billion in this quarter on the back of two large deals won in...

Tata Consultancy Services Ltd. is trading below all available SMAs

Tata Consultancy Services Ltd.

17 Apr 2020

3463.40

-0.99%

Tata Consultancy Services: Q4FY20 Result Review

Hold: Tata Consultancy Services ...

Target

IDBI Capital

TCS's Q4FY20 revenue decline of 2.5% QoQ in US$ was a miss. However, EBIT margin remained resilient at 25.1%, +7bps QoQ and inline with our forecast. As a result, EPS of Rs21.5, -0.8%/-0.9% QoQ/YoY was in-line with our forecast. In Q4, TCS has secured deals with TCV of US$8.9 bn (a new high) taking the TCV for FY20 to US$26.9 bn. TCS believes that the worst as regards the impact of Covid-19 pandemic is yet to come. It expects the peak impact in Q1FY21, however, given its deal wins and pipeline it expects its performance to improve in H2FY21. We factor Q4FY20 miss and cut FY21E/22E revenue (US$) by 2.8%/2.6% and EPS by...

Number of FII/FPI investors decreased from 1828 to 1797 in Mar 2025 qtr

Tata Consultancy Services Ltd.

17 Apr 2020

3463.40

-0.99%

First Light | Tata Consultancy Services, Oil & Gas Q4FY20 Preview

Sell: Tata Consultancy Services ...

Recommendation Target

BOB Capital Markets Ltd.

TCS: Prelude to darker Q1FY21. Oil & Gas: Q4FY20 Preview Pressure on cyclical earnings.

Tata Consultancy Services Ltd. is trading below all available SMAs

Tata Consultancy Services Ltd.

17 Apr 2020

3463.40

-0.99%

Tata Consultancy Services (ADD): Prelude to darker Q1FY21

Buy: Tata Consultancy Services ...

Target

BOB Capital Markets Ltd.

Despite only a partial impact in the last two weeks of March, Covid-19 fuelled 1.2% QoQ CC revenue contraction at TCS in Q4FY20, missing consensus estimates.

Number of FII/FPI investors decreased from 1828 to 1797 in Mar 2025 qtr

Tata Consultancy Services Ltd.

16 Apr 2020

3463.40

-0.99%

Impressive deal wins despite COVID-19 headwinds

Neutral: Tata Consultancy Services ...

Target

Motilal Oswal

In 4QFY20, revenue (USD) / EBIT (INR)/PAT increased 1%/5%/-1% YoY (v/s TCS deal win TCV of USD8.9b (+44% YoY, ex-Phoenix deal) despite the COVID-19 shock during 4QFY20 was impressive. The pandemic is expected to pose continued near-term challenges on demand, supply, pricing and working capital fronts. The COVID-19 pandemic is expected to pose continued near-term challenges on demand, supply, pricing and working capital fronts. In 4QFY20, revenue (USD) / EBIT (INR)/PAT increased 1%/5%/-1% YoY (v/s our estimates of 3%/4%/-2% YoY). For FY20, revenue (USD) / EBIT (INR) / PAT grew BFSI saw sharp revenue decline (~4.8% QoQ, USD); we understand this is due to difficulty in securing approvals for work from home (WFM). Life Sciences and Healthcare (+3.3% QoQ, USD), Technology and Services (+0.9% QoQ, USD) and Communications (+0.2% QoQ, USD) remained outliers to the Despite an expected stretch on working capital cycle, the company increased its.