Tata Consultancy Services Ltd. share price target

TCS reported a revenue of USD6.7b in 4QFY22, up 3.2%/2.6% QoQ in constant currency (CC)/USD terms, but slightly below our estimate of 3.1% QoQ growth. Revenue in 4QFY22 was driven by Retail and Manufacturing, while regional markets and others remained weak. EBIT margin was flat QoQ at 25% in 4QFY22 (in line). Given its record high employee headcount of 35k and continued sub-contracting pressure (+5%...

Q4 revenue growth at 3.2% QoQ CC beat consensus expectations of 2.3% but came in a tad lower than our estimate

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....

3.07% rise in operating profit to Rs 13,845.00 crore. Employee cost increased from 55.58% to 56.04%. Other expenses fell from 16.95% to 16.59%. Software technology development services cost fell from 0.88% to 0.51%. Other income fell 18.59% to Rs 981 crore. PBIDT rose 1.28% to Rs 14581 crore. Provision for interest fell 2.39% to Rs 245 crore. Loan funds remained nil. PBDT rose 1.35% to Rs 14581 crore. Provision for depreciation rose 1.76% to Rs.1217...

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...

all companies in NIFTY IT Index, several mid-cap, small cap IT firms and new age internet players. Management commentary across companies indicate that strong demand environment is expected to continue over medium term and revenue growth is no longer contingent on winning large deals. Pricing environment has also improved. Additionally, companies are doing aggressive fresher hiring resulting in pyramid balancing which will provide considerable margin tailwinds in FY23....

all companies in NIFTY IT Index, several mid-cap, small cap IT firms and new age internet players. Management commentary across companies indicate that strong demand environment is expected to continue over medium term and revenue growth is no longer contingent on winning large deals. Pricing environment has also improved. Additionally, companies are doing aggressive fresher hiring resulting in pyramid balancing which will provide considerable margin tailwinds in FY23....

TCS Buyback: An Opportunity For Retail Investors

The Board of Directors of Tata Consultancy Services Ltd (TCS), at its meeting, held on January 12, 2022, has approved a proposal to buyback up to four crore shares at `4,500 per share. The buy-back aggregates to `18,000 Cr, which represents 1.08% of the total, paid-up equity share capital. The buyback will be via the