Durability score
70 /100
Valuation score
15.8 /100
Momentum score
49.9 /100
Market Capitalizati...
791,212.5 Cr.
AVG Broker Target
2,164.2
PE TTM Price to Ear...
24.5
2109.90
1.59%
buy
Hold: TCS
Axis Direct
Tata Consultancy Services (TCS) largest IT exporter in India has witnessed strong demand but reported sluggish growth in revenue terms, TCS reported sluggish growth of 0.4% for Q1 FY20 on QoQ basis in constant currency terms and 11.4%on YoY basis in rupee terms at Rs. 38,172 crs.
Tata Consultancy Services Ltd. is trading below it's 30 day SMA of 2199.04
2109.90
1.59%
default
Number of FIIs/FPIs holding stock rose by 26 to 1470 in Jun 2019 qtr.
2109.90
1.59%
buy
Hold: TCS
Geojit BNP Paribas
Tata Consultancy Services (TCS) provides a comprehensive range of IT services globally. The company serves clients across diverse industries, including finance and banking, insurance, telecommunication,...
Axis Direct downgraded Tata Consultancy Services Ltd. to Hold with a price target of 2150.0 on 12 Jul, 2019.
2109.90
1.59%
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 Services Ltd. is trading above it's 200 day SMA of 2033.99
2109.90
1.59%
buy
Hold: TCS
ICICI Securities Limited
Uphill task to achieve double digit revenue growth in FY20E The growth in banking & financial services tapered mainly due to weakness in capital markets and European banks. This trend is expected to continue, which will be a key dragger for revenue growth in the near term. In addition, 8.1% QoQ dip in deal TCV at US$5.7 billion does not augur well for the revenue growth trajectory. Further, a weak revenue performance in a seasonally strong Q1 will make it an uphill task for the company to achieve double digit growth rate in FY20E. To achieve double digit growth in FY20E,...
Tata Consultancy Services Ltd. is trading above it's 200 day SMA of 2033.99
2109.90
1.59%
buy
Hold: TCS
Arihant Capital
TCS came out with mixed set of numbers in Q1FY20, revenue and EBIT margin were slightly below our as well as street estimate; however PAT for the quarter was ahead of our estimate owing to higher other income. Digital business continued to show traction, though BFSI vertical remained on a weak footing. We are positive on the stock from longer term perspective, however in the near term we see limited upside due to expensive valuation and tepid management commentary. We maintain our...
Tata Consultancy Ser.. has an average target of 2164.18 from 18 brokers.
2109.90
1.59%
buy
Accumulate: TCS
IDBI Capital
We factor Q1FY20 revenue miss and fine-tune our forecast. We now forecast revenue (US$)/EPS CAGR of 10%/9.1% over FY19-21E. We also fine-tune our TP to Rs2,195 (vs. Rs2,228 earlier) based on 22x FY21E. We believe that any decline in the stock due to revenue growth miss in Q1FY20 should be used to ACCUMULATE. Key Highlights and Investment Rationale Q1FY20 see another quarter of double-digit growth at 10.6% YoY in CC Revenue growth of 1.6% QoQ in US$ (~2.1% in CC) missed our forecast of 3% QoQ in US$ (3.5% in CC). As expected, BFSI (30.8% of revenue, +1.3% QoQ in US$), impacted...
Tata Consultancy Services Ltd. is trading above it's 200 day SMA of 2033.99
2109.90
1.59%
Nirmal Bang Institutional
TCS' 1QFY20 was disappointing with revenue growth of 2.2% QoQ (10.6% YoY) in constant currency (CC) terms, underperforming our estimate of 3%. This was due to greater-than-expected softness in BFSI and Retail verticals. Despite the strong TCV bookings in the last few quarters, the softer growth points to weaker conversion of these deals due to deferrals in execution by customers. That is what is apparent in the data although TCS publicly denies deferrals by clients. A strong 2Q - ~4%5% QoQ growth - would be required for TCS to deliver on its non-guidance' double digit YoY growth in CC terms. To us it looks a tall order considering that global economy has deteriorated during the last six months and is set to worsen further in the coming days. The BFSI space looks a lot tougher with flatter/inverted yields and negative yields across a broad swathe of European...
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Number of FIIs/FPIs holding stock rose by 26 to 1470 in Jun 2019 qtr.
2109.90
1.59%
BOB Capital Markets Ltd.
TCS had a mixed Jun'19 quarter with a miss on operating performance but healthy deal wins (US$ 5.7bn, +16.3% YoY). Softness in the BFSI and retail verticals led to below-estimated revenue growth of 2.3% QoQ CC, while onsite supply pressure weighed on operating margins. With a slow start to the year, double-digit growth in FY20 looks a tough ask. We trim FY20/FY21 EPS by ~7% each on revised revenue and currency assumptions, roll over to a Jun'21 TP of Rs 2,360...
Axis Direct downgraded Tata Consultancy Services Ltd. to Hold with a price target of 2150.0 on 12 Jul, 2019.
2109.90
1.59%
Emkay
TCS's Q1 performance was a tad weaker than our/Street estimates. CC revenue growth of 2.3% qoq, coupled with ~90bps qoq fall in EBIT margins to 24.2%, missed expectations slightly, although net profit beat was supported by higher other income. The company indicated that Q1 was impacted by weak macros but it continues to strive for double-digit' growth in FY20E, and hopes remain pinned on a strong Q2. Mid-term confidence reflected from strong hiring and continued deal win momentum in Q1FY20. We continue to believe that FY20 is a relatively difficult growth year for the sector after the rebound through CY17 and CY18. Prefer Tier-I names over Tier-II on a relative basis....
Tata Consultancy Services Ltd. is trading below it's 30 day SMA of 2199.04