Tata Consultancy Services Ltd. share price target

The company's deal pipeline continues to be healthy at US$7.6 billion S ep -20 D ec-20 Mar-21 Ju n -21 Target Price and Valuation: We value TCS at | 4,530 i.e. 34x P/E on FY23E EPS...

In line CC growth, but miss on USD revenue and margin: TCS reported an in line revenue growth of 4% QoQ CC in 2QFY22. However, USD revenue growth (2.9% QoQ) missed our estimate of 3.7% QoQ growth. EBIT margin expanded by 10bp QoQ to 25.6%, but was lower than our estimate of 26.2%, on supply side challenges. PAT stood at INR97b, up 6.9% QoQ, aided by higher other income and stable ETR. The company reported an OCF/PAT of 103% and a FCF/PAT of 97% on good working capital management, indicating the ability to generate strong cash flow. 1HFY22 USD...

Q2 revenue grew 2.9% QoQ USD, in line with our estimate of 3%; TCV was healthy at US$ 7.6bn

Revenue grew by +4% QoQ CC lower than our (5.5%) & cons estimates (4.5%) led by softness in Life Sciences & Healthcare (0.9% QoQ USD) led by closure of contracts in European region (-0.2% QoQ USD). Growth was strong in other verticals & geos, recovery in India business was strong (+14.1% QoQ USD). Deal TCV of USD $7.6bn was lower on QoQ and YoY basis (vs $8.1 Bn in...

its deal win momentum and has secured deals with TCV of US$7.6bn vs US$8.1bn QoQ. TCS continue to maintain its positive outlook and we believe it will be able to achieve its double digit revenue growth in FY22. We fine-tune our forecast and raise our EBIT Margin by 30bps/20bps to 25.8%/25.9% resulting an increase in EPS by 2.6%/5.1% to Rs106/121 for FY22E/FY23E. We recommend HOLD with a TP of Rs4,072 (vs Rs3,498) based on PER of 32x FY23E. Key Highlights and Investment Rationale Decent growth, but missed street expectation...

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,...

Revenue grew by +2.7% QoQ in USD (PLe: 3.6%, Cons: 3.5%) led by strong growth in core verticals and markets (+4.1% QoQ CC), offset by decline in India business due to impact of second wave of COVID. Revenue lost (~INR...

We recommend a HOLD rating on the stock and assign a 28x P/E multiple to its FY23E earnings of Rs 127.7/share to arrive at a TP of Rs 3,560/share, implying an upside of 9% from CMP.

TCS reported 2.4% QoQ cc growth (vs. est. of 3.5%), impacted by contraction in India geography. Core market growth was intact at 4.1%