TCS Q4 Review - Strong Deals, Superior Execution To Support Valuation Premium In Tier-1: HDFC Securities

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..HDFC Securities Institutional Equities Report.Tata Consultancy Services Ltd. remains our preferred pick in tier-I IT, as highlighted in our recent updates (IT sector – Europe playbook and Tech hiring to recover in CY24). While TCS’ revenue growth was along expected lines in Q4, it pushed the envelope on deals and operating performance. Market share gains in vendor consolidation/cost optimisation programs and outperformance in margins substantiate superior execution, even as discretionary spending remains challenged. While we have only marginally increased our earnings estimates, Q4 performance has raised the probability of growth acceleration based on record deal wins, bottoming out of core verticals/geo and scope to further progress on margins. We expect TCS’ growth to accelerate from 3.4% constant currency in FY24 to 6.3% and 8.2% in FY25E and FY26E with Ebitm at 25.5% and 26.0% respectively, translating into an 11.5% earnings per share compound annual growth rate over FY24-26E. Maintain Add on TCS with target price of Rs 4,500 based on 28 times FY26E EPS, in line with its five year average price-to-earnings growth. .Click on the attachment to read the full report:.TCS Q4 Results Review - Deal Wins To Ensure Better FY25, Commentary Remains Cautious: Dolat Capital.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

TCS Q4 Review - Strong Deals, Superior Execution To Support Valuation Premium In Tier-1: HDFC Securities

In-line revenue growth driven by BSNL

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

TCS Q4 Review - Strong Deals, Superior Execution To Support Valuation Premium In Tier-1: HDFC Securities

In-line revenue growth driven by BSNL

Choose a plan

Follow Us

DOWNLOAD THE APP