Motilal Oswal - MOSL: Morning India (10/December/21): 1. TCS (Structural levers intact; growth to support valuations; Upgrade to Buy); 2. LT Infotech; 3. India Mutual Fund Industry; 4. EcoScope

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Motilal Oswal

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MOSL: Morning India (10/December/21): 1. TCS (Structural levers intact; growth to support valuations; Upgrade to Buy); 2. L&T Infotech; 3. India Mutual Fund Industry; 4. EcoScope

MOrning India (10/December/21): 1. TCS (Structural levers intact; growth to support valuations; Upgrade to Buy); 2. L&T Infotech; 3. India Mutual Fund Industry; 4. EcoScope

Today’s top research idea

TCS: Structural levers intact; growth to support valuations; Upgrade to Buy

IT services industry should see acceleration in growth from multi-year cloud upgrade cycle. TCS is among the best positioned to benefit from this uptick. It should gain given its strong organic capabilities, diverse presence, deal win momentum, and strong headcount additions. TCS should also benefit from its superior ability to manage talent supply challenges.
TCS has underperformed its peers over last one year. This should reverse as peer growth starts to normalize as well as on increased aggression from TCS to gain market share.
TCS should deliver 14% revenue CAGR over FY21-24E, with increased offshoring and inorganic opportunities potential increments.
Our TP of INR4,220 is based on 30x P/E. We upgrade to Buy with 17% upside.

Piping hot news

Paytm Payments Bank gets scheduled payments bank status

Paytm Payments Bank on Thursday said it has received the status of a scheduled payments bank from the Reserve Bank of India (RBI) by being included in the Second Schedule to RBI Act, 1934. The payments bank can now participate in government and other large corporation-issued request for proposals (RFPs), RBI-run primary auctions, fixed rate and variable rate repos, reverse repos, and marginal standing facility (MSF).

10/12/2021 22 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: Morning India (10/December/21): 1. TCS (Structural levers intact; growth to support valuations; Upgrade to Buy); 2. L&T Infotech; 3. India Mutual Fund Industry; 4. EcoScope

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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