The company reported a 6.3% sequential growth in March quarter consolidated profit to Rs 9,246 crore while revenue grew by 4% to Rs 43,705 crore. Here’s what brokerages are saying about TCS after the company reported its Q4 result:
CLSA
The brokerage has maintained buy and raised target to Rs 3,560 from Rs 3,370. There is little to complain in TCS’ result, said CLSA. The brokerage said order boook was strong. Rich valuation limit absolute upside but healthy cash generation, liberal capital return policy and macro demand strength should sustain its relative outperformance versus the broader market, said CLSA.
Edelweiss
The brokerage has maintained buy rating on TCS with an unchanged target price of Rs 4,176. The brokerage continues to remain confident of strong growth trajectory for the next few years. Demand for core transformation continues
to remain strong and coupled with exemplary execution is likely to drive strong
earnings, said Edelweiss.
Kotak Institutional Equities
The brokerage has retained reduce rating due to full valuations and raised target price to Rs 3,250. Deal total contract value is strong and lays the ground for strong FY22 revenue growth, said Kotak Institutional. TCS is well prepared to manage the war for talent, the brokerage said.
IIFL Securities
IIFL Securities has maintained buy rating on TCS and has revised the target price to Rs 3420 from Rs 3400. The stock trades at 30 times FY22 estimated price-to-earnings, which is at a 30% premium to peers, said IIFL. The brokerage recommends adding the stock on corrections. IIFL forecasts 15%/17% US dollar revenue/earnings per share growth on a compounded basis over FY21-FY23 period.
