Tata Consultancy Services Ltd. share price target

Tata Consultancy Services’ (TCS) FY22 annual report (AR) highlights the theme of ‘Innovating for Greater Futures’ referring to the accelerated innovation in enterprises as they shift from improvising (to cope with the challenges of the pandemic) to growth and transformation.

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. The Company caters to finance and banking, insurance,...

margins to remain under pressure and quarterly annualized attrition flattening. TCS reported largely in-line revenues and margin in Q4. The strength in demand is reinforced by 1) record high broad-based TCV ($11.3 Bn, 49% QoQ, +23% YoY) comprising of two large deals (7-10-year duration), 2) management commentary that deal TCV will continue trending upwards at ~$8+ bn (vs $6-7 Bn pre-covid) and 3) record headcount addition of ~35K, 6%QoQ, +21% YoY. Margins are expected to remain under pressure in the near term due to high manpower costs and return of travel and facility costs....

five years (from ~| 1,097 in January 2017 to ~| 3,700 levels in April 2022). We revise our rating on the stock from BUY to HOLD Target Price and Valuation: We value TCS at | 4,120 i.e. 31x P/E on FY24E EPS...