Neutral on TCS, target price Rs 3400: Motilal Oswal

Motilal Oswal has a neutral call on Tata Consultancy Services with a target price of Rs 3400. The current market price of Tata Consultancy Services is Rs 3274.45.

Time period given by analyst is one year when Tata Consultancy Services Ltd. price can reach defined target.

Tata Consultancy Services Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1205335.89 Crore) operating in IT Software sector.

For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 46132.00 Crore, up 3.35 % from last quarter Total Income of Rs 44636.00 Crore and up 18.53 % from last year same quarter Total Income of Rs 38920.00 Crore. Company reported net profit after tax of Rs 9031.00 Crore in latest quarter.

Investment Rationale
IT Services has entered into a technology upcycle, with cloud- and data-driven deals coming into the market. Given ’ size, capabilities, and portfolio stretch, it is rightly positioned to leverage expected industry growth. The company has consistently maintained its market leadership and shown bestin-class execution. This gives the company continued room to increase its margin, while demonstrating industry-leading return ratios. The TP implies 27x FY23E EPS. While the brokerage remains positive on the company, it maintains Neutral given the rich multiples.

Promoter/FII Holdings
Promoters held 72.2 per cent stake in the company as of March 31, 2021, while FIIs held 15.6 per cent, DIIs 7.9 per cent and public & others 4.3 per cent.

(Disclaimer: Views and recommendations given in this section are the analysts’ own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.

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