We largely maintain our FY20E revenue (in US$). We cut our EBIT margin forecast to 25.2% vs. 26.4% and also cut our EPS forecast by 4.3%. We introduce FY21 financials and forecast revenue (US$)/EPS CAGR of 11%/9.9% over FY19-21E. We maintain ACCUMULATE with new TP of Rs2,228 (vs. Rs2,084 earlier) based on 22x FY21E. Key Highlights and Investment Rationale Q4FY19 see strong revenue growth of 2.4%/12.7% QoQ/YoY in CC Both QoQ CC growth and US$ growth of 2.8% was in-line with our forecast. Life Sciences & Healthcare (7.7% of revenue; +18.2% YoY in CC) and Regional markets &...

Tata Consultancy Services Ltd. has lost -31.95% in the last 1 Year

Tata Consultancy Services Ltd.

15 Apr 2019

3048.30

-1.53%

TCS

Buy: Tata Consultancy Services ...

Sharekhan

alluded at continuing of growth momentum in FY2020E, despite witnessing macro challenges in the environment. FY2019 was a strong broadbased growth year, driven by strong mega deal wins in FY2018. Stepping into FY2020E, management has stated at strong TCV wins in FY2019 ($22 billion), which give comfort on the growth trajectory. However, management has resented from giving any growth statement...

IDBI Capital upgraded Tata Consultancy Services Ltd. to Buy with a price target of 3450.0 on 20 Aug, 2025.

Tata Consultancy Services Ltd.

15 Apr 2019

3048.30

-1.53%

Tata Consultancy Services

Hold: Tata Consultancy Services ...

Target

ICICI Securities Limited

Deal TCV enhances revenue visibility for FY20E Banking & financial services continued to have momentum in Europe besides a few banks facing company specific issues. Sub-segments such as softness in capital markets can keep vertical growth in check. Commentary on demand in retail & CPG vertical was positive from a medium term perspective. The key positive was continued trajectory in order win TCV, growth of 5% QoQ at $6.2 billion ($21.9 billion in FY19). This implies book to bill ratio of 1.15x indicating better revenue visibility for FY20E. Hence,...

Tata Consultancy Services Ltd. is trading below all available SMAs

Tata Consultancy Services Ltd.

15 Apr 2019

3048.30

-1.53%

Tata Consultancy Services Limited

Results Update: Tata Consultancy Services ...

SMC online

Sequentially TCS registered a 2% rise in consolidated sales to Rs 38010 crore for the quarter ended March 2019. OPM fell 50 basis points to 26.5% which saw OP stagnant at Rs 10074 crore. Margin was down 50 bps qoq on a reported basis, but remained largely in line, adjusting for a...

Tata Consultancy Services Ltd. has lost -31.95% in the last 1 Year

Tata Consultancy Services Ltd.

14 Apr 2019

3048.30

-1.53%

Tata Consultancy Services (BUY): Good on all count, BUY stays

Buy: Tata Consultancy Services ...

Target

BOB Capital Markets Ltd.

TCS delivered strong Mar'19 quarter performance with 2.4% QoQ CC growth, 25.1% EBIT margins and US$6.2bn worth deal wins. BFSI growth returned to double digit trajectory and marked its strongest performance in 11 quarters. Digital revenues at US$6.7bn run rate increased by 46% YoY. TCS remains our preferred pick amongst IT large-caps due to its (1) systematic and timely investment in digital capabilities, (2) growth visibility buoyed by robust...

IDBI Capital upgraded Tata Consultancy Services Ltd. to Buy with a price target of 3450.0 on 20 Aug, 2025.

Tata Consultancy Services Ltd.

13 Apr 2019

3048.30

-1.53%

Tata Consultancy Services (4QFY19): Leader, across parameters. Maintain BUY

Buy: Tata Consultancy Services ...

Target

HDFC Securities

TCS' growth and scale leadership in digital (USD 6.7bn annualized) are key differentiators. Continuity in strong deal wins, broad-based growth across verticals (esp. core) and geographies are driving double-digit growth. Margin/attrition differential vs. peerset reflects superior execution. Payout policy (80-100% of FCF), 90% FCF/PAT, ~4% FCF yield and 11/10% USD rev/EPS CAGR over FY19-21E support valuations (currently at 20x FY21E). We maintain BUY on TCS following an inline 4QFY19. Our TP is Rs 2,410 implying 24x FY21E EPS, with ~1% change in est. TCS is our top large cap IT pick.

Tata Consultancy Ser.. has an average target of 3930.82 from 11 brokers.

Tata Consultancy Services Ltd.

13 Apr 2019

3048.30

-1.53%

Deal win, BFSI acceleration suggest intact momentum

Neutral: Tata Consultancy Services ...

Target

Motilal Oswal

13 April 2019 TCS ended FY19 with full-year constant currency (CC) revenue growth of 11.4% YoY, EBIT margin of 25.6% (+80bp YoY) and net income growth of 22.5% YoY. In FY19, TCS paid out 93% of its free cash flows to shareholders via dividends/buybacks. For 4QFY19, revenue in CC grew 12.7% YoY (in line), EBIT margin shrank 50bp QoQ to 25.1% (in line after adj. for 60bp one-off) and net income at INR81.3b grew 17.7% YoY a 3.6% beat due to INR3.4b forex gains. TCS signed USD6.2b worth of deals in total contract value (TCS) in 4Q, making it the strongest quarter in FY19 on that front.

Tata Consultancy Services Ltd. is trading below all available SMAs

Is Tata Consultancy Services Ltd. worth buying?

2435 Votes:

Buy 73.18%

Sell 13.88%

Hold 12.94%

RESEARCH REPORTS

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