Buy Tata Consultancy Services; target of Rs 4750: Sharekhan

Sharekhan is bullish on Tata Consultancy Services has recommended buy rating on the stock with a target price of Rs 4750 in its research report dated April 12, 2024.

April 15, 2024 / 01:37 PM IST

Buy

 
 
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Sharekhan's research report on Tata Consultancy Services

Reported revenues at $7,363 million, up 1.1% q-o-q in constant currency (CC) terms, missing our estimates by 0.5%, EBIT margin expanded 98 bps q-o-q to 26%, beating our estimates of 25.3% aided by reduced sub-contractor costs, improved productivity and better utilization offset by headwinds from third-party costs and travel expenses. Record Deal win TCVs at $13.2 billion, up 63% q-o-q/32% y-o-y. Book to bill ratio stood at 1.8x (up from 1.1x in Q3FY24). TCS is witnessing green shoots and moderate growth in consumer business and pent-up demand in BFS, Management believes FY25 to be certainly better than FY24.

Outlook

We maintain a Buy with an unchanged PT of Rs. 4,750. At CMP, the stock trades at 27.4x/23.6x FY25/26E EPS.

For all recommendations report, click here

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Tata Consultancy Services - 15042024 - khan

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Tags: #Buy #Recommendations #Sharekhan #Tata Consultancy Services
first published: Apr 15, 2024 12:47 pm

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