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Reduce Tata Consultancy Services, target price Rs 2935: ICICI Securities

ICICI Securities has reduce call on with a target price of Rs 2935. The current market price of Tata Consultancy Services is Rs 3219.8. 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 1195163.50 Crore) operating in IT Software sector.

Financials
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
The result and commentary reinforce anti-consensus argument that growth and margins of the industry in post-covid equilibrium will be largely similar to pre-covid levels. As disappointments (on consensus earnings) related to this continue, the current lifetime-high multiples (30x FY23E EPS) are unlikely to sustain. Downgrade to REDUCE.

Promoter/FII Holdings
Promoters held 72.2 per cent stake in the company as of March 31, 2021, while FIIs held 15.7 per cent, DIIs 7.8 per cent and public and others 4.3 per cent.

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

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