Buy TCS now ? Detail update - YP buzz Finance

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                 Shares of Tata Consultancy Services (TCS) fell more than 6% on Monday's opening agreements after second-quarter earnings and a margin below analysts' estimates. Investments in the TCS market dropped to ₹ 13,62,564 crore on the BSE at the beginning of the session from ₹ 14,55,687 crore as of Friday.

                                                                        
TCS

The combined profit of TCS in the September 2021 quarter jumped to, 9,624 crores from ₹ 8,433 crores in the last quarter, aided by broad growth based on all geographies and verticals. Its EBIT magazines have improved 10 bps QoQ to 25.6%, while revenue has grown by 4% QoQ by fixed monetary policy (CC).


"TCS has reported revenue growth in the 4% line respectively in terms of CC. However, the growth in dollar revenue has missed our balance. EBIT margin has also been lower than our average in terms of supply-side challenges," said retailer Motilal Oswal.


The 2HFY22 is periodically tight on the line, given the absorption of salary increases and operational expenditure. However, Motilal said management had shown that the line in the near future could soften, led by the ongoing challenges of providing assistance. The brokerage has a Neutral Rate (target price 3,770) in IT stocks. It remains optimistic about the company, given its strong growth vision, but high prices leave a limited area of disappointment.


The TCS attraction rate increased to 11.9% from 8.6% in the quarter of June, and high levels of attraction are likely to continue in the next two to three quarters, according to IT giant CEO Milind Lakkad.


One of the traders Nirmal Bang said the cost of talent, the impact of accumulation, and investment seem to have eroded the expected growth of the line. It has a 'Collect' status on TCS shares at a price target of ₹ 3,772 per share.


“Ahead of the queue, we are very confident as we believe that cost pressures will reach FY22 and will ease in FY23, largely due to the reconstruction of the pyramid (78,000 new appointments expected at FY22, almost double the number on FY21 and the number is much higher than the three-month target back), "said the seller's note.


However, Prabhudas Lilladher has a 'Buy' rating on TCS with a target price of, 4,113. The brokerage believes that low TCS attraction (compared to peers) is a competitive advantage in the current environment where growth is more restricted by supply than demand.


Demand continues to be driven by three broader approaches namely consumer spending, investment in digital content development, and growth and transformation, says Prabhudas Lilladher notes.


In the meantime, Yes Securities analysts remain loyal to the stock market as a strong demand spot will help it report the growth of two-digit revenue on FY22 / FY23. Book reservations are always powerful and can help boost growth momentum.


“There is a rocky outcrop in the vicinity of the water supply. However, we expect it to maintain a stable margin of ~ 26% aided by an effective performance measure. We keep the BUY rate in stock at a fixed price of ₹ 4,395, "the traders said.


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