Rajnath Singh refuses to pinpoint blame about 'rumours' on son

Rajnath Singh refuses to pinpoint blame about 'rumours' on son

There has been some reports of Rajnath Singh's son being ticked off by PM Narendra Modi...
New Flight MH 370 theory

New Flight MH 370 theory

Malaysia Airlines Flight MH370 may have turned south earlier than previously thought

Tata Consultancy Services shares get 'outperform' rating, target price Rs 2,700

Mar 20 2014, 12:18 IST
Comments 0
Tata Consultancy Services valuations to inch closer to previous business cycle peak. (Agencies) Tata Consultancy Services valuations to inch closer to previous business cycle peak. (Agencies)
SummaryTata Consultancy Services valuations to inch closer to previous business cycle peak.

We retain ‘outperform’ on Tata Consultancy Services (TCS) with a 12-month target price of Rs 2,700 (23x FY15e EPS). With the management having reiterated its positive commentary, we believe TCS is on track to register industry leading $ revenue growth in FY15 as well.

We believe improving discretionary spend in the US and market-share gains in Europe would drive healthy growth for the Indian IT services industry. TCS stock has modestly underperformed the broader markets recently (6% YTD) and currently trades at 18x FY15e EPS. We see upside to our estimates if the global economy gathers momentum, and expect TCS’ valuations to inch closer to previous business cycle peak.

We attended Tata Consultancy Services’ (TCS) pre-quarterly analyst meet. The management has reiterated its optimistic view on the demand environment. Despite seasonal softness in Q4FY14 vis-a-vis Q3, it expects FY14 to be better than FY13 and FY15 better than FY14.

The management expects usual beginning-of-the-year seasonal weakness to play out in Q4 in the absence of any budget flush in India business, unlike in FY13. India business would continue to see sequential decline due to muted pre-election spending.

US/ UK revenue growth would be close to company average while Europe would be in line with previous quarters (6.5% in Q3FY14). Among emerging markets, LatAm would be strong while West Asia/APAC would be flattish.

Live: BSE Sensex

Check prices: All Models

Buying used Car?

Comparison: Maruti Suzuki Celerio vs Alto

Ads by Google

More from Money & Funds

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...