Result Update

TCS Ltd Q1FY20 Result Update


TCS is seeing good traction in digital space despite weakness in BFSI segment and the management is confident of continuing its medium term growth path on the back of a strong deal pipeline. However achieving its aspirational margins of 26-28% will be difficult at current exchange rate and company will strive to better its margin in subsequent quarters. We believe TCS can deliver industry-leading growth and have positive view on the stock, however acknowledge the fact that margins will be tepid due to industry wide supply side pressure. At CMP of Rs 2133, TCS is trading at a P/E of 22x its FY20E earnings, which is expensive. Due to limited upside potential and expensive valuation, we maintain our Hold rating on the stock with unchanged target price of Rs 2225 valuing it at 23x FY20E EPS, giving an upside of 4.3%.

Tags: Result Update


Search Reports

SEARCH

Open an account

OPEN AN ACCOUNT

Reports

Daily Market Update...

Nifty opened higher traded...

Read More

Daily Market Update...

Nifty opened higher but were...

Read More

Daily Market Update...

On the daily chart, we are...

Read More

Daily Market Update...

Nifty opened higher initially...

Read More

Daily Market Update...

Nifty opened on a subdued...

Read More

Greaves Cotton Q1FY20...

Greaves Cotton came out with...

Read More

Manappuram Finance Ltd...

Manappuram Finance (MFL)...

Read More

Aurobindo Pharma Q1FY20...

The company is confident of...

Read More

City Union Bank Ltd...

City Union Bank (CUB)...

Read More

Ramco Cements Ltd Q1FY20...

Ramco Cements came out with...

Read More

Subscribe to newsletter

Request a call back

DISCLAIMER: This document has been prepared by Arihant Capital Markets Limited (hereinafter called as Arihant) and its subsidiaries and associated companies. This document does not constitute an offer or solicitation for the purchase and sale of any financial instrument by Arihant. This document has been prepared and issued on the basis of publicly available information, internally developed data and other sources believed to be reliable. Whilst meticulous care has been taken to ensure that the facts stated are accurate and opinions given are fair and reasonable, neither the analyst nor any employee of our company is in any way is responsible for its contents and nor is its accuracy or completeness guaranteed. This document is prepared for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. All recipients of this material should before dealing and or transacting in any of the products referred to in this material make their own investigation, seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material. Arihant Capital Markets Ltd (including its affiliates) or its officers, directors, personnel and employees, including persons involved in the preparation or issuance of this material may; (a) from time to time, have positions in, and buy or sell or (b) be engaged in any other transaction and earn brokerage or other compensation in the financial instruments/products discussed herein or act as advisor or lender/borrower in respect of such securities/financial instruments/products or have other potential conflict of interest with respect to any recommendation and related information and opinions.