3390.4000 -3.20 (-0.09%)
NSE Jun 24, 2025 15:31 PM
Volume: 3.4M
 

3390.40
-0.09%
HDFC Securities
TCS' growth, scale and durability are its key strengths. Growth in digital, momentum in deal wins and strong hiring trend are positive demand indicators. TCS' offshore leverage in digital (location independent Agile framework), outperformance in BFSI (vs. Accenture) and superior execution (margin/attrition differential) stand out. We expect 10/9% rev/EPS CAGR over FY19-22E. Strong FCF generation (90% FCF/PAT), payout policy (80-100% of FCF) and >4% FCF yield will support valuations. Key risks include INR appreciation, adverse macros and increase in onsite workforce crunch. We maintain BUY on TCS following a miss on revenue and an inline margin performance. Our TP is Rs 2,420 at 24x Jun-21E EPS, with ~2% cut in earnings estimates.
Tata Consultancy Ser.. has an average target of 4063.82 from 11 brokers.
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