2686.80 15.65 (0.59%)
NSEOct 23, 2020 03:31 PM
The 52 reports from 14 analysts offering long term price targets for Tata Consultancy Services Ltd. have an average target of 2823.62. The consensus estimate represents an upside of 5.09% from the last price of 2686.80.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2020-10-13||Tata Consultancy Ser..||Geojit BNP Paribas||2763.30||3236.00||2763.30 (-2.77%)||20.44||Buy|
|2020-10-12||Tata Consultancy Ser..||SMC online||2826.55||2826.55 (-4.94%)||Results Update|
|2020-10-09||Tata Consultancy Ser..||Arihant Capital||2812.95||2994.00||2812.95 (-4.48%)||11.43||Hold|
|2020-10-08||Tata Consultancy Ser..||HDFC Securities||2825.70||3070.00||2825.70 (-4.92%)||14.26||Accumulate|
Our target price of Rs 3,070 is based on 27x Sep-22E EPS (24x earlier) with EPS CAGR at 16% over FY21-23E. We maintain ADD on TCS, following a stellar 2Q performance and a strong commentary. Key positives included the following: (1) strong deal wins (including Phoenix), supported by market share gains, vendor consolidation with a high number of small and mid-sized deals enabling faster transition) and a balanced deal pipeline; (2) broad-based growth across core verticals (BFSI, Retail & CPG rebound) and core geographies (UK to be volatile); (3) resumption of hiring momentum with 12,000 fresher on-boarding planned in 3Q (7,000 in 1Q) and wage increase, (4) operational resilience reflected in higher utilisation, lower attrition, lowest-ever DSO (including unbilled) leading to strong FCF generation-linked to better payout (Rs 160bn buyback announced).
|2020-10-08||Tata Consultancy Ser..||Sharekhan||2825.70||3150.00||2825.70 (-4.92%)||17.24||Buy|
|2020-10-08||Tata Consultancy Ser..||Prabhudas Lilladhar||2812.95||3200.00||2812.95 (-4.48%)||19.10||Buy|
|2020-10-08||Tata Consultancy Ser..||BOB Capital Markets Ltd.||2812.95||3180.00||2812.95 (-4.48%)||18.36||Buy|
|2020-10-08||Tata Consultancy Ser..||ICICI Securities Limited||2825.70||3300.00||2825.70 (-4.92%)||22.82||Buy|
|2020-10-08||Tata Consultancy Ser..||Nirmal Bang Institutional||2812.95||2809.00||2812.95 (-4.48%)||Target met||Accumulate|
|2020-10-08||Tata Consultancy Ser..||Axis Direct||2825.70||3100.00||2825.70 (-4.92%)||15.38||Buy|
Tata Consultancy Services Ltd (TCS) reported strong broad based growth in Q2 FY21, revenue stood at Rs. 40,135 crs up 3.0% YoY and 4.7% QoQ. Operating profit showed a growth of 18.5% YoY at Rs. 11,429 cr, operating margin grew by 260 bps at 26.2% than previous quarter aided by strong execution
|2020-10-05||Tata Consultancy Ser..||Axis Direct||2705.80||2750.00||2705.80 (-0.70%)||Target met||Buy|
|2020-10-01||Tata Consultancy Ser..||HDFC Securities||2523.45||2540.00||2523.45 (6.47%)||Target met||Accumulate|
Reiterate positive outlook: Despite the recent outperformance/re-rating (valuations at +2SD with IT index outperforming NIFTY by 17/20% over 3M/6M), we remain positive on the sector based on (1) growth longevity and acceleration (FY21-23 incremental revenue growth > FY17-21 period, factoring -2.0%, +9.8%, +8.7% USD revenue growth by tier-1 in FY21/22/23E), and (2) resilient service portfolio (tier-1 IT aggregate to reach pre-COVID revenue by 3QFY21) even in an extended pandemic scenario. Key risks are intermittent volatility with upcoming US elections and unfavourable USD-INR swing. We roll forward valuations to Sep-22E, and our preferred picks include Infosys, HCL Tech, Mphasis, LTI, Persistent, Sonata and Mastek. The IT sector (coverage universe) is expected to bounce back to +3.2% QoQ in 2QFY21E, following a 6% QoQ decline in 1QFY21. We expect tier-1 IT to deliver revenue growth in the range of -0.5% to +3.5% QoQ in CC terms, and expect an additional cross-currency impact in the range of +140-170bps QoQ. Growth is backed by (1) strong deal flow (pipeline/conversion), (2) improvement in execution (transition timelines and reversal in supply-side challenges). The three enormous industry tailwinds for Indian IT which are supporting broad-based acceleration include: (1) increase in priority for tech spend/budgets over other budgets for enterprises, (2) compression of timelines for core IT systems transformation, cloud migration and multi-cloud interoperability, and (3) vendor consolidation (partner-led engagements, large deal constructs, and higher existing customer CSAT led).
|2020-09-09||Tata Consultancy Ser..||Sharekhan||2331.15||2600.00||2331.15 (15.26%)||Target met||Buy|
We upgrade TCS to Buy from Hold with a revised PT of Rs. 2,600, given strong earnings growth potential over FY2021-23E Company best-placed to leverage next transformation wave given early investments on tech spend areas, strong delivery model, client proximity and status as preferred digital partner of large enterprises....
|2020-09-01||Tata Consultancy Ser..||BOB Capital Markets Ltd.||2265.15||2620.00||2265.15 (18.61%)||Target met||Buy|
BOB Capital Markets Ltd.
While BFSI vertical revenues of Indian IT players contracted in Q1FY21, we expect a swift recovery to pre-Covid growth levels through FY21 on the back of (1) receding supply challenges and (2) steady technology budgets at large US banks.
|2020-07-15||Tata Consultancy Ser..||Geojit BNP Paribas||2200.75||2361.00||2200.75 (22.09%)||Target met||Hold|
Geojit BNP Paribas
Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization that provides a comprehensive range of IT services to its clients in diverse industries. The Company, caters to finance and banking, insurance, telecommunication, transportation, retail, manufacturing,...
|2020-07-13||Tata Consultancy Ser..||SMC online||2171.95||2171.95 (23.70%)||Results Update|
Tata Consultancy Services (TCS) reported Q1FY21 result, Impact of the pandemic played out broadly in line with expectations Tata Consultancy Services (TCS) for the quarter ended Jun 2020 reported a consolidated revenue of Rs 38322 crore, a fall of 4% compared to sequential previous quarter ended Mar 2020 revenue of Rs 39946 crore. Lower revenue for the quarter is largely as revenue of all...
|2020-07-10||Tata Consultancy Ser..||HDFC Securities||2222.35||1980.00||2222.35 (20.90%)||26.31||Sell|
We maintain REDUCE on TCS We maintain REDUCE on TCS, following a miss on 1Q revenue/margin, offset by improving outlook. Valuations at >1SD more than adequately factor in the recovery trajectory, although the improving near-term visibility could keep the stock price elevated. Key positives include the following: (1) growth recovery is expected from 2Q (reversal of supply dent ~150bps); (2) BFSI vertical resilience is supported by strong deal wins (book-to-bill at 1.33x ex-Standard Life) and pipeline; (3) recovery trajectory is expected in continental Europe; (4) the companys strong cash generation is supported by a stable DSO in a tough quarter. Key concerns include: (1) recovery lag in Retail & CPG vertical (sub-vertical impact), manufacturing vertical, and (2) UK geographys performance (BFS weakness). Our target price of Rs 1,980 is based on 21x FY22E (+2% increase in EPS estimate).
|2020-07-10||Tata Consultancy Ser..||Axis Direct||2222.35||2365.00||2222.35 (20.90%)||Target met||Hold|
TCS reported sluggish results in Q1FY21; revenue stood at Rs. 38,322 crs a decline of 4% QoQ and 7.1% QoQ in CC terms. Operating profit showed a de-growth of 10% QoQ at Rs. 9,048crs, while operating margin declined by 150 bps QoQ at 23.6% due to lower utilization and pricinng pressure.
|2020-07-10||Tata Consultancy Ser..||BOB Capital Markets Ltd.||2222.35||2320.00||2222.35 (20.90%)||Target met||Accumulate|
|2020-07-10||Tata Consultancy Ser..||IDBI Capital||2222.35||1982.00||2222.35 (20.90%)||-26.23||Hold|
TCS's Q1FY21 revenue decline of 6.9%/7.8% QoQ/YoY in CC was a miss to our forecast. EBIT margin of 23.6%, -150bps QoQ was also a miss. Further, higher than expect effective tax rate (ETR) resulted in higher miss at EPS level. In Q1, TCS has secured deals with TCV of US$6.9 bn (ex-Phoenix Standard Life deal) vs. US$5.7 bn YoY. TCS believes that the impact of Covid-19 pandemic has bottomed out in Q1FY21 and has maintained its revenue growth outlook for rest of FY21. We factor Q1FY21 miss and cut FY21E/22E revenue (US$) by 3%/2.5% and EPS by 2.6%/2.9%. We now forecast FY21 revenue to decline by 5.1% YoY and revive to a...