Connect with us

Hi, what are you looking for?

Share Market

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

Financial Express - Business News, Stock Market News

TCS, TCS Q1FY22, TCS share price

TCS share price fell 0.4 per cent to Rs 3,262 apiece after rising over half a per cent in the opening trade on Thursday, ahead of April-June quarter results of FY22. Analysts expect Tata Consultancy Services to post a 25 per cent on-year and 5 per cent sequential growth in net profit. At least three research and brokerage firms — JM Financial Institutional Securities, HDFC Securities Institutional Equities and Nirmal Bang — have upgraded TCS share target price to Rs 3,750 apiece, up 15%. TCS stock hit an all-time high of Rs 3,399 apiece on 25 June 2021. The stock rallied 60 per cent in the past year and gained 14.5 per cent so far in 2021. In the volume traded terms, 43,000 shares have exchanged hands on BSE and a total of 9.6 lakh units on NSE, so far in the trade.

Here’s what top brokerages expect from TCS Q1FY22 earnings

JM Financial Institutional Securities: The brokerage firm has revised up the TCS target price to Rs 3,300 apiece. It expects a 3 per cent sequential growth in constant currency, and 30 bps of cross currency tailwinds. The firm believes that despite the FY22 wage increments rollout from April 2021, EBIT margin decline is expected to be limited to 110 bps, due to slight rupee depreciation and growth leverage. The key things to watch out for today include large deal TCV, outlook on client spending trends and pricing trends, levers to defend or improve margins in the backdrop of certain supply side concerns.

Related News

  • Info Edge, TCS, HDFC, Shyam Metalics, Bajaj Healthcare, RailTel Corporation stocks in focus

    Info Edge, TCS, HDFC, Shyam Metalics, Bajaj Healthcare, RailTel Corporation stocks in focus

  • TCS, Infosys, HCL Tech, IT sector, Q1FY22 results preview

    TCS, Infosys, HCL Tech, IT sector Q1FY22 results preview: Strong revenue growth, lower margins, wage hike

  • Nifty, bank nifty, open interest, Call OI, Put OI

    Nifty may hit 16,300 if it holds 15,900, Bank Nifty to trade in this range; TCS, Infosys in focus this week

Motilal Oswal Financial Services: It has a neutral rating to the stock with a TP at Rs 3,450, an upside of 5.3 per cent from previous close. It expects strong growth, led by a ramp up in large deal wins in 4QFY21, and robust TCV led by continued momentum in deal wins. It also sees a decline in sequential margin on account of wage hike during 1QFY22. While sector demand outlook and margin impact from large captive deals would remain in focus.

HDFC Securities Institutional Equities: It has an add rating to the stock with a price target at Rs 3,750 apiece, a rally of 15 per cent from Wednesday’s close. Deal wins such as TCS-Proximus remained strong in the first quarter of the current fiscal. The research firm expects 3.6 per cent sequential growth in TCS supported by uptick in deals.

Nirmal Bang Institutional Equities: The brokerage firm has revised the target price of the stock upwards to Rs 3,663 from an earlier target price of Rs 3,165 apiece. It has maintained an accumulate rating to the stock. TCS continues to be Nirmal Bang’s sector benchmark as it believes TCS to be best positioned in the industry. “We believe the uniformly strong growth seen across both large-sized and mid-sized players is probably a 12-24 month phenomenon and there is likely to be greater disparity after that and our valuation discounts to TCS partly reflect that,” the brokerage firm said.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like


Cybercriminals Adopt the Blockchain to Broadcast confidential Messages A group of analysts from SophosLabs represents that programmers working the crypto-jacking malware, Glupteba, have been...


PUBG unban in India soon as PUBG Corp. Will The Government Of India Unban PUBG? PUBG Mobile was Ban in India, PUBG organization has...


A standard method to execute Bitcoin could be powerless against double-spending, the new examination has found. Blockchain sleuths at ZenGo, a wallet startup, have...

BlockChain News

HDD mining, also known as “storage mining”, is a process of obtaining cryptocurrency based on hard disk memory. Compared with traditional POW mining, hard...