3354.25 -20.20 (-0.60%)
NSE Aug 10, 2022 15:49 PM
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Tata Consultancy Services Ltd.    
09 Jul 2021, 06:49AM
HDFC Securities
Our target price of INR 3,650 is based on 30x Jun-23E EPS with EPS CAGR at 14% over FY21-24E. Tata Consultancy Services: We maintain ADD on TCS, supported by strength in core segments (Q1 miss on India revenue to reverse) and continuity in market share gains (book-to-bill at 1.3x as compared to 1.2x for Accenture outsourcing). Growth drivers for the company include (1) calibrated focus on upstream/consulting business (larger share of G&T;) increasing the addressable market/pipeline, (2) increased outsourcing (Europe), core transformation deals, and strong growth in public hyperscaler services, (3) strong deal wins in retail & CPG vertical and increased deal volumes (not TCV) in BFSI, and (4) near-term lift-off with recovery in regional market segment (India revenue). Increasing the supply-side pressure (attrition headed towards double digits, yet industry-best) and return of discretionary spend (ex-travel) will cap margin gains despite operating leverage and differential pricing.
Tata Consultancy Ser.. has an average target of 3744.00 from 14 brokers.
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