ICICI Direct's research report on Tata Consultancy Services
Tata Consultancy Services’ (TCS) revenue growth was across geographies and verticals led by a ramp up of deal wins and transformational opportunities. US$ revenues grew 5.0% QoQ to $5,987.0 million vs. our estimate of 5.0% QoQ growth and $5,987.1 million estimate. EBIT margins expanded 20 bps QoQ to 26.8%. TCS has declared an interim dividend of Rs 15/share. One of the key highlights was that the company’s deal pipeline continues to be healthy at US$9.2 billion. The company aspires to register double digit revenue growth in FY22E.
Outlook
Hence, we maintain our BUY rating on the stock with a revised target price of Rs 3,800/share (PE of 30x on FY23E EPS) (earlier target price Rs 3,600).
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