TCS Q1 results preview: Stock rallies 15% YTD; analysts expect 25% profit growth in Apr-Jun quarter

TCS share worth fell 0.4 per cent to Rs 3,262 apiece after rising over half a per cent within the opening commerce on Thursday, forward of April-June quarter outcomes of FY22. Analysts anticipate Tata Consultancy Services to put up a 25 per cent on-year and 5 per cent sequential development in internet revenue. No less than three analysis and brokerage corporations — JM Financial Institutional Securities, HDFC Securities Institutional Equities and Nirmal Bang — have upgraded TCS share goal worth to Rs 3,750 apiece, up 15%. TCS inventory hit an all-time excessive of Rs 3,399 apiece on 25 June 2021. The inventory rallied 60 per cent previously yr and gained 14.5 per cent thus far in 2021. Within the quantity traded phrases, 43,000 shares have exchanged palms on BSE and a complete of 9.6 lakh items on NSE, thus far within the commerce.

Right here’s what prime brokerages anticipate from TCS Q1FY22 earnings

JM Monetary Institutional Securities: The brokerage agency has revised up the TCS goal worth to Rs 3,300 apiece. It expects a 3 per cent sequential development in fixed foreign money, and 30 bps of cross foreign money tailwinds. The agency believes that regardless of the FY22 wage increments rollout from April 2021, EBIT margin decline is predicted to be restricted to 110 bps, because of slight rupee depreciation and development leverage. The important thing issues to be careful for immediately embody massive deal TCV, outlook on consumer spending tendencies and pricing tendencies, levers to defend or enhance margins within the backdrop of sure provide facet issues.

Motilal Oswal Financial Services: It has a impartial ranking to the inventory with a TP at Rs 3,450, an upside of 5.3 per cent from earlier shut. It expects robust development, led by a ramp up in massive deal wins in 4QFY21, and strong TCV led by continued momentum in deal wins. It additionally sees a decline in sequential margin on account of wage hike throughout 1QFY22. Whereas sector demand outlook and margin influence from massive captive offers would stay in focus.

HDFC Securities Institutional Equities: It has an add ranking to the inventory with a worth goal at Rs 3,750 apiece, a rally of 15 per cent from Wednesday’s shut. Deal wins reminiscent of TCS-Proximus remained robust within the first quarter of the present fiscal. The analysis agency expects 3.6 per cent sequential development in TCS supported by uptick in offers.

Nirmal Bang Institutional Equities: The brokerage agency has revised the goal worth of the inventory upwards to Rs 3,663 from an earlier goal worth of Rs 3,165 apiece. It has maintained an accumulate ranking to the inventory. TCS continues to be Nirmal Bang’s sector benchmark because it believes TCS to be greatest positioned within the business. “We consider the uniformly robust development seen throughout each large-sized and mid-sized gamers might be a 12-24 month phenomenon and there’s more likely to be larger disparity after that and our valuation reductions to TCS partly mirror that,” the brokerage agency stated.

(The inventory suggestions on this story are by the respective analysis analysts and brokerage corporations. Monetary Specific On-line doesn’t bear any accountability for his or her funding recommendation. Capital markets investments are topic to guidelines and rules. Please seek the advice of your funding advisor earlier than investing.)