TCS: Strong growth and demand outlook key positive in Q2 (TCS IN, Mkt Cap USD138.7b, CMP INR3121, TP INR3580, 15% Upside, Buy) Stable deal TCV to allay concerns on near-term growth TCS reported revenue of USD6.87b in 2QFY23, up 4.0% QoQ in constant currency (CC) terms, 50bp above our estimates. The company reported deal wins of USD8.1b (up 7% YoY/flat QoQ, book-to-bill ratio at 1.2x), in line with its historical trajectory. EBIT improved 90bp QoQ to 24% (vs. our estimate of 23.5%) despite ...
The general evaluation of TATA CONSULTANCY SVS. (IN), a company active in the Computer Services industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date April 1, 2022, the closing pri...
TCS: Structural levers intact; growth to support valuations; Upgrade to Buy (TCS IN, Mkt Cap USD176.5b, CMP INR3604, TP INR4220, 17% Upside, Upgrade to Buy) IT services companies should see acceleration in structural growth over the medium term as corporates embark on a multi-year cloud-led upgrade cycle. This shift in the business model should lead to a substantial increase (5% revenue v/s 3% historically) in the tech budgets of enterprise clients, adding 5-6% incremental growth for the ...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
TCS 1QFY22: Robust core growth and deal wins to drive expansion (TCS IN, Mkt Cap USD161.3b, CMP INR3257, TP INR3400, 4% Upside, Neutral) Valuation continues to factor in performance Tata Consultancy Services (TCS) reported revenue growth of 2.4% QoQ CC in 1QFY22, below our estimate of 3.6%. This was primarily due to sharp de-growth in its India business (-14.1% QoQ) on account of the second COVID wave. Excluding the impact in regional markets, core business growth of 4.1% QoQ CC was broa...
A director at Tata Consultancy Services sold 1,091 shares at 3,250.000INR and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two y...
(TCS IN, Mkt Cap USD117.1b, CMP INR2218, TP INR2320, 5% Upside, Neutral) Weak growth; healthy margin expansion; soft outlook ** In a seasonally soft quarter, TCS reported weak growth (~0.3% QoQ, CC) dragged by key segments like BFSI and US. Reported deal wins ex Phoenix (up ~2% YoY in 3Q) were not encouraging. Near-term outlook was soft due to overhang in areas like large banks/retailers in the US and banks in the UK. ** Our estimates over FY20-22E remain largely unchanged. We continue liking ...
Q2FY20 result highlights Materially below expectations on growth and margins: TCS posted CC revenue growth of 1.6% q-q (~100bps miss versus our/consensus est.), with EBIT margins down 20bps q-q to 24% (vs our/consensus est. of 24.8/25.3%). Large segments underperform on growth: The growth miss was driven by weakness in North America (their largest geography) which posted ~5% y-y growth and BFSI/Retail and Technology verticals (~55% of revenue), which posted below company average growth. Wea...
TCS: Near-term less certain; medium term more reassuring (TCS IN, Mkt Cap USD116.0b, CMP INR2131, TP INR2100, 1% Downside, Neutral) Kick starts the year on expected lines: TCS' revenue growth deceleration (10.6% YoY CC in 1QFY20 on the base of 12.5% in 4QFY19) and EBIT margin contraction (-150bp QoQ/- 90bp YoY to 24.2%) were both in line with our estimates. PAT grew 10.8% YoY to INR81b, implying a 6.2% beat, helped by higher other income and lower ETR (23.4% v/s our estimate of 24.2%). Ad...
Tata Consulting Services reported a solid start to the fiscal year, but revenue growth was a little modest versus our expectations, and management is taking a wait-and-see approach to the second quarter to determine whether a double-digit full-year revenue growth outlook is a reasonable forecast. Tata noted that banking & financial services and retail had been slightly softer than expected, and we were assuming as much with peers such as Cognizant seeing a similar trend especially in the banking...
Tata Consulting Services reported a solid start to the fiscal year, but revenue growth was a little modest versus our expectations, and management is taking a wait-and-see approach to the second quarter to determine whether a double-digit full-year revenue growth outlook is a reasonable forecast. Tata noted that banking & financial services and retail had been slightly softer than expected, and we were assuming as much with peers such as Cognizant seeing a similar trend especially in the banking...
Tata Consulting Services reported a solid start to the fiscal year, but revenue growth was a little modest versus our expectations, and management is taking a wait-and-see approach to the second quarter to determine whether a double-digit full-year revenue growth outlook is a reasonable forecast. Tata noted that banking & financial services and retail had been slightly softer than expected, and we were assuming as much with peers such as Cognizant seeing a similar trend especially in the ban...
Tata Consulting Services reported a solid start to the fiscal year, but revenue growth was a little modest versus our expectations, and management is taking a wait-and-see approach to the second quarter to determine whether a double-digit full-year revenue growth outlook is a reasonable forecast. Tata noted that banking & financial services and retail had been slightly softer than expected, and we were assuming as much with peers such as Cognizant seeing a similar trend especially in the ban...
Tata Consultancy Services is India’s first and largest software exporter. Its long-term success comes from a disciplined approach to project execution and a concerted emphasis on customer satisfaction. TCS’ extensive global delivery network and full suite of IT services allows the firm to support the world’s largest enterprises, which sets it apart from smaller rivals. The firm’s operations are concentrated in North America, application development and maintenance, and banking, financial...
Tata Consultancy Services is India’s first and largest software exporter. Its long-term success comes from a disciplined approach to project execution and a concerted emphasis on customer satisfaction. TCS’ extensive global delivery network and full suite of IT services allows the firm to support the world’s largest enterprises, which sets it apart from smaller rivals. The firm’s operations are concentrated in North America, application development and maintenance, and banking, financial...
Tata Consultancy Services finished fiscal 2019 strong, with fourth-quarter revenue growth coming in at a rate not seen for a few quarters and margins expanding over the prior year. Secular trends, encompassed within the firm’s Business 4.0 framework, continued to be the underlying drivers of performance. We are maintaining our narrow moat and stable trend ratings for this IT services company. Though shares had a slightly unfavorable reaction, trading slightly lower after the results were annou...
Tata Consultancy Services finished fiscal 2019 strong, with fourth-quarter revenue growth coming in at a rate not seen for a few quarters and margins expanding over the prior year. Secular trends, encompassed within the firm’s Business 4.0 framework, continued to be the underlying drivers of performance. We are maintaining our narrow moat and stable trend ratings for this IT services company. Though shares had a slightly unfavorable reaction, trading slightly lower after the results were annou...
Int'l Equity Strategy Global equities staged an impressive rally over the first four months of 2019. The nearly unabated advance allowed the broad major indexes (MSCI ACWI, ACWI ex-US, and EAFE) to break topside critical 14-month downtrends which began in January 2018. Heading into May, YTD uptrends were ubiquitous and market participants were generally of the belief that a US-China trade deal was a foregone conclusion. Then came Trump's May 5th tweets claiming China was attempting to renegotia...
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