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ICICI Securities has given a buy rating to TCS with a target price of Rs 3350. The share price moved up by 4.70 per cent from its previous close of Rs 2737.40. The stock’s last traded price is Rs 2866.
Tata Consultancy Services Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1071343.36 Crore) operating in IT Software sector.
Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 40135.00 Crore, up 4.73 % from last quarter Sales of Rs 38322.00 Crore and up 2.97 % from last year same quarter Sales of Rs 38977.00 Crore Company has reported net profit after tax of Rs 7504.00 Crore in latest quarter.
Investment Rationale
TCS has been consistently showing impressive increase in addressable market by launching new offerings (e.g. platformised solutions) and scaling up in new markets (e.g. BeNeLux). In Europe, channel checks suggest the company is well positioned to win several upcoming large deals (in areas like CX/CI) given its edge over the competition. Aided by its prior expertise of handling M&A led systems/process integration projects post GFC, TCS should benefit from a similar trend post Covid-19. The stock is now trading at ~38% premium to its long-term averages. However, as per valuation framework, this re-rating is within understandable limits.
Promoter/FII Holdings
Promoters held 72.1 per cent stake in the company as of June 30, 2020, while FIIs held 15.9 per cent, DIIs 7.9 and public and others 4.1 per cent.
Tata Consultancy Services Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1071343.36 Crore) operating in IT Software sector.
Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 40135.00 Crore, up 4.73 % from last quarter Sales of Rs 38322.00 Crore and up 2.97 % from last year same quarter Sales of Rs 38977.00 Crore Company has reported net profit after tax of Rs 7504.00 Crore in latest quarter.
Investment Rationale
TCS has been consistently showing impressive increase in addressable market by launching new offerings (e.g. platformised solutions) and scaling up in new markets (e.g. BeNeLux). In Europe, channel checks suggest the company is well positioned to win several upcoming large deals (in areas like CX/CI) given its edge over the competition. Aided by its prior expertise of handling M&A led systems/process integration projects post GFC, TCS should benefit from a similar trend post Covid-19. The stock is now trading at ~38% premium to its long-term averages. However, as per valuation framework, this re-rating is within understandable limits.
Promoter/FII Holdings
Promoters held 72.1 per cent stake in the company as of June 30, 2020, while FIIs held 15.9 per cent, DIIs 7.9 and public and others 4.1 per cent.
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