Motilal Oswal - MOSL: Morning India (11/July/18): 1. TCS; 2. IndusInd Bank; 3. Tata Motors; 4. Dish TV; 5. IPCA Labs.

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Motilal Oswal

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MOSL: Morning India (11/July/18): 1. TCS; 2. IndusInd Bank; 3. Tata Motors; 4. Dish TV; 5. IPCA Labs.

MOrning India (11/July/18): 1. TCS; 2. IndusInd Bank; 3. Tata Motors; 4. Dish TV; 5. IPCA Labs.

Today’s top research idea

TCS: Kick-starts the year on a strong footing

Recovery in BFSI (3.7% QoQ CC) drove both revenues (4.1% QoQ CC v/s estimate of 3.3%) and margin (25% EBIT v/s estimate of 24.7%) outperformance for TCS in 1QFY19. With strong visibility over the near-to-medium term, TCS remains on track to inch up towards double digit revenue growth (9.1% YoY CC in 1Q) and also towards its aspired minimum margin 26%. This drove 1.7-2.4% upgrade in our earnings estimates for FY19 and FY20.
For the first time, TCS disclosed its deals TCV, a number that will hereon be shared every quarter - a welcome disclosure. For 1QFY19, the TCV of USD4.9b implied book-to-bill of slightly less than 1; and this will be closely tracked going forward. For double digit growth to sustain, TCS will need mega deals to keep coming, in our view.
As a result, we are building lower growth in FY20, and remain Neutral at valuations of 20x FY20E earnings.

Piping hot news

Axis Bank shortlists three for MD and CEO

Axis Bank has submitted names of three candidates, in the order of preference, for the post of MD and CEO to RBI for approval. In April, the bank’s current MD and CEO Shikha Sharma decided to step down on December 31.

11/07/2018 22 EN

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MOSL: Morning India (11/July/18): 1. TCS; 2. IndusInd Bank; 3. Tata Motors; 4. Dish TV; 5. IPCA Labs.

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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