Durability score
60 /100
Valuation score
16.8 /100
Momentum score
54.9 /100
Market Capitalizati...
742,800 Cr.
AVG Broker Target
2,076.6
PE TTM Price to Ear...
24.5
1980.80
-1.24%
Nirmal Bang Institutional
Hints At Momentum For Double-digit Growth In FY20, But BFSI Is Flatlining SELL We had a meeting with the management of Tata Consultancy Services (TCS) recently. We came away from the meeting a tad bit more positive on its FY20 revenue outlook. While it stated that the current momentum in most verticals would take TCS to double-digit growth in FY20, we still believe it may fall a tad shy off double digit. We understand that about 200bps-250bps of FY19 revenue growth came from major orders that it won in 2HFY18 connected with its insurance platform. We have not seen announcement of similar kind of deals so far in 4QFY19. We therefore expect growth in FY20 to be a tad slower than in FY19. Some of the other key takeaways from the meeting include the following: (1) After a...
Number of FIIs/FPIs holding stock rose by 32 to 1397 in Dec 2018 qtr.
1980.80
-1.24%
Motilal Oswal
While growth momentum remains intact for now, one needs to be cautious on the likelihood of the same sustaining through the course of CY19. Barring Automotives and Hi-tech, traction is sanguine in other segments of the business
Tata Consultancy Services Ltd. is trading below it's 30 day SMA of 2003.76
1980.80
-1.24%
buy
Hold: TCS
Geojit BNP Paribas
Currency fluctuations weighed on dollar revenue growth TCS delivered muted performance in Q3FY19 with consolidated revenue growth of 0.7% QoQ in dollar terms due to cross-currency headwinds. However, constant currency (CC) revenue growth stood at 1.8% QoQ/12.1% YoY in an otherwise seasonally weak quarter. The CC growth YoY (the highest in 14 quarter) was driven by continued acceleration across key verticals and geographies. Vertically, the growth was powered by BFSI (8.6% YoY), retail (10.5%), Telecom (10.8%) and life-sciences (15.7%), while UK (25.1%) & Europe (18%) led growth geographically. Further sustained momentum in digital business (grew strongly...
Number of FIIs/FPIs holding stock rose by 32 to 1397 in Dec 2018 qtr.
1980.80
-1.24%
SMC online
Other income jumped 59% to Rs 1163 crore and interest cost fell 88% to Rs 16 crore. After providing for depreciation (up 2% to Rs 519 crore), PBT went up 3% to Rs 10711 crore. Provision for taxation grew 6% to Rs 2590 crore after which PAT grew 2% to Rs 8121 crore....
Nirmal Bang Institutional increased Sell price target of Tata Consultancy Services Ltd. to 1607.0 on 18 Mar, 2019.
1980.80
-1.24%
buy
Buy: TCS
Axis Direct
Tata Consultancy Services (TCS) the largest IT services exporter in India has witnessed strong demand in Q3FY19 across segments. Strong traction was also seen in digital space, digital space reported strong growth of 53% for Q3 FY19 on YoY basis.
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Tata Consultancy Services Ltd.'s price crossed below SMA30 today
1980.80
-1.24%
HDFC Securities
Maintain BUY with TP of Rs 2,430, at 24x Dec-20E EPS, supported by leading organic growth within tier-1 IT and >60% RoIC, >4% FCF yield & >3.5% dividend yield. TCS posted acceleration in revenue (in-line) supported by strong digital traction (53% YoY) and continued revival in BFSI. However, margins were lower on increased hiring and higher sub-contracting expense (both indicative of buoyant demand). Rev came at USD 5,250mn, 1.8/12.1% QoQ/YoY CC with digital at 30.1% of rev (USD 6.3bn rev annualised).
Tata Consultancy Services Ltd. is trading below it's 30 day SMA of 2003.76
1980.80
-1.24%
buy
Hold: TCS
ICICI Securities Limited
There was disappointment at the margin level as EBIT margins declined 90 bps QoQ to 25.6% (vs. our 27% estimate). The margin decline was mainly on account of net cross currency headwind and increase in employee and sub-contractor cost (negative 60 bps) Macro uncertainty clogs visibility of double digit growth beyond FY19E TCS had a weak show in the quarter with a miss at revenue growth mainly on account of 2.1% QoQ decline in traditional business. Growth was a miss due to de-growth in BFSI (0.6% QoQ) and flat growth in retail...
Tata Consultancy Services Ltd.'s price crossed below SMA30 today
1980.80
-1.24%
buy
Accumulate: TCS
IDBI Capital
We largely maintain our FY19E/20E revenue (in US$) and tweak EPS forecast by -1.0%/1.7% (FX of Rs70 for Q4FY19 and FY20). We maintain ACCUMULATE with new TP of Rs2,084 (vs. Rs2,121 earlier) based on 22x FY20E. Q3FY19 CC revenue growth of 1.8%/12.1% QoQ/YoY despite seasonal weakness Both QoQ CC growth and US$ growth of 0.7% was in-line with our forecast. While smaller verticals like Life Sciences & Healthcare (7.6% of revenue; +15.7% YoY in CC) and Energy & utilities (4.7% of revenue; +18.1% YoY) grew faster, larger verticals like Retail & CPG (16.5% of revenue; +10.5% YoY) also saw good growth. Importantly, BFSI (30.8% of revenue) saw improvement in growth to +8.6% YoY....
Tata Consultancy Ser.. has an average target of 2076.60 from 18 brokers.
1980.80
-1.24%
buy
Neutral: TCS
Angel Broking
TCS posted a 0.7% sequential growth in USD revenues to US$5,250mn v/s US$5,215mn in 2QFY2019. In rupee terms, revenues came in at `37,338cr V/s `36,854cr, up 1.3% QoQ. In Constant Currency (CC) terms, the company posted a 1.8% QoQ growth. On profitability front, EBIT margin showed a dip of ~90bps QoQ to 25.6%. Consequently, PAT
Tata Consultancy Services Ltd. is trading above it's 200 day SMA of 1958.59
1980.80
-1.24%
Nirmal Bang Institutional
A Double-digit FY20? Not Yet. Talent Hoarding Impacts Margins In 3QFY19, TCS' constant currency (CC) QoQ revenue growth at 1.8% (12.1% YoY) was in line with expectations. However, EBIT margin slipped to 25.6% (our estimate 27.2%). This has been because of lower gross margin and higher-than-expected SG&A; expenses as a significantly talentconstrained market for new age services, primarily in the US, led to what we believe as talent hoarding by TCS. That, in our view, is a pre-emptive move by TCS to handle demand fulfilment problem that players like DXC, Hexaware and Persistent Systems specifically and the industry in general has talked of in recent times (Refer: Onsite Supply Bottleneck Unlikely A One-Off). It also potentially addresses a tighter market for H1-B visas under the new rules (Refer: Likely Change In...
Tata Consultancy Services Ltd. is trading above it's 200 day SMA of 1958.59