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.
IDBI Capital Report
Tata Consultancy Services Ltd.'s Q1 FY25 numbers were in-line with consensus estimates. While the macro still seems to be uncertain in the near term, TCS continues to win cost optimization, vendor consolidation and growth and transformation deals.
The company has also won mega deals in banking, financial services and insurance ($ 2.1 billion), consumer business ($1.1 billion) and region wise; North America ($4.6 billion).
TCS' order book at $8.3 billion saw a decline due to delayed deal conversion for this quarter (1.1 times books to bill versus 1.8 times previous quarter).
It is expected to ramp up in Q2 FY25 which would help in the topline to improve. Improvement in BFSI, traction in Gen AI ($1.5 billion pipeline), Cloud modernization, ERP modernisation will lead to tailwind in revenue and margins.
Hence, we have revised our EPS estimates to Rs 142 and 160 (versus 145 and 166) for FY25E and FY26E respectively. This has prompted us to maintain target price at Rs 4,300 and we maintain Hold rating on the stock.
Click on the attachment to read the full report:
DISCLAIMER
This 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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
