TCS share price jumps 2 on strong Q3FY22 profit growth, may rally up to 30;‘ buy’TCS, say judges » Matter Catchers

TCS share price jumps 2 on strong Q3FY22 profit growth, may rally up to 30;‘ buy’TCS, say judges

TCS share price jumps 2% on strong Q3FY22 revenue growth, may rally up to 30%; ‘buy’ TCS, say analysts

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TCS share price soared over 2 per cent to Rs all on BSE, a day after the IT trendsetter posted a12.36 per cent on- time rise in the consolidated net profit
TCS share price soared over 2 per cent to Rs all on BSE on Thursday, a day after the IT trendsetter posted a12.36 per cent on- time rise in the consolidated net profit to Rs crore for the third quarter ended December 31, 2021. Tata Consultancy Services also blazoned an interim tip of Rs 7 per equity share, and approved a share buyback worth Rs crore at Rs per share. TCS stock is now near its 52-week high of Rs.

Brokerage enterprises have recommended buying TCS stock after the October-December fiscal results, with over to 30 per cent implicit rally from the current situations. TCS’ profit performance was in line with estimates, but the periphery was a miss, said judges. Judges also believe that continued hiring with the loftiest ever net headcount addition in Q3 alone, indicates sustainability of a strong demand terrain.

Should you buy TCS stock post Q3 earnings?
Prabhudas Lilladher Buy
Target price Rs
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The exploration establishment has given a steal standing to the stock with a target price of Rs all, an up move of15.75 per cent from last ending price. It believes TCS’ low waste (as compared to peers) is a competitive advantage in the current terrain where growth is constrained more by force rather than demand. “ We believe TCS can fluently sustain
26 EBIT periphery in FY23 despite return of optional charges and force side cost pressures As force side pressures ease off in FY23, there’s compass for periphery expansion led by reducingsub-contracting costs, bettered pricing, aggregate optimization, stylish-in- class force side machine and influence from profit growth,” it said.

Kotak Institutional Equities Add

The exploration establishment has maintained its add standing to the stock on solid profit growth of 4 successionally, ahead of its estimates. It believes that TCS is more deposited than peers to manage periphery headwinds, as the company will be at the van of driving digital metamorphosis for guests. Kotak has raised TCS’FY2022-24 profit estimates by 1-3 and EPS estimates by 1-3. “ TCS has better-than- peers force- side operation, which will allow it to grow profitably,” the exploration establishment said.

Motilal Oswal Financial Services Buy
Target price Rs
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The exploration brokerage establishment sees a 10 per cent upside in the stock with a price target of Rs all. The establishment believes that Tata Consultancy Services has posted robust topline growth in a seasonally weaker quarter. “ We anticipate this performance to palliate the enterprises on its growth eventuality and the likely drag from growing share of lower deals in the request,” it said. “ Given TCS’size, capabilities, and portfolio stretch, it’s correctly deposited to influence the anticipated assiduity growth,” Motilal Oswal Financial Services said in a note.
Edelweiss Research Buy
Target price Rs
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The exploration establishment said that TCS’Q3 profit and perimeters came in below prospects, while profit growth was above estimated. It’ll take TCS share price to jump nearly 30 per cent to hit the target price of Rs projected by the exploration establishment. “ TCS delivered strong growth figures and the overall channel remains robust. We believe demand for core metamorphosis remains strong, and this coupled with exemplary prosecution is likely to drive strong earnings,” it said.

Emkay Financial Services Buy
Target price Rs
.The exploration establishment sees a7.5 per cent jump in the TCS stock post Q3 earnings as profit growth was above prospects, while perimeters was a miss. The exploration establishment noted that a strong and sustained demand terrain, broad- grounded growth, healthy deal input, and traction in pall, IoT and Digital engineering gave operation confidence to sustain a robust profit growth line. “ Operation expects that measures taken to manage force- side challenges may weigh on perimeters in the near term,” it said.

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