Investors Buoyed by TCS Q1 Results, Shares Up 3% Today Buy or Sell?

New Delhi. Shares of Tata Consultancy Services (TCS) saw a rally today after it announced its results for the first quarter of the current fiscal year. Shortly after the market opened, shares of TCS rose nearly 3 percent to Rs 4,044 (TCS share price) on BSE. Today the share opened at ₹4,001.15 above yesterday’s closing price of ₹3,922.70. Analysts have given a positive outlook on TCS’s Q1 performance. Several brokerage firms have given a buy or ‘hold’ recommendation on TCS shares. Analysts are bullish on this IT stock due to TCS’ strong revenue growth and market leadership.

In the first quarter of the current fiscal, TCS posted a profit of Rs 12,040 crore, up 9 percent on a year-on-year basis. In the first quarter of the financial year 2023-24, the company had made a net profit of Rs 11,074 crore. In the first quarter of the current fiscal, TCS’s income from operations rose 5 percent to Rs 62,613 crore. The company’s revenue in the same quarter of the previous fiscal year was Rs 59,381 crore. While announcing the quarterly results, TCS also announced an interim dividend of Rs 10 per equity share of Rs 1 to investors.

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Better results than expected
According to a report by LiveMint, TCS’s Q1 results were better than most analysts’ estimates. Sharekhan’s Sanjeev Hota had estimated TCS’s revenue growth of 1.5 percent on a quarterly basis. While the increase has been 2 percent. Although the margin declined by 130 basis points due to the salary increase, it was still better than expected. On the results, Sanjeev said, “TCS’s Q1 numbers are overall positive for IT stocks. “We maintain our ‘buy’ rating on the stock.” He said EBIT margin after salary hike was 26 Expected to move towards the -28% range.

The brokerage houses have maintained the ratings.
After the quarterly results, most brokerage firms have kept their stance on TCS shares unchanged. Motilal Oswal Financial Services has maintained its Buy rating on the stock and set a target price of Rs 4660. Kotak Institutional Equity has also maintained its ‘add’ rating with a target price of Rs 4,500. Global brokerage firm UBS has also given a buy recommendation on the stock with a target price of Rs 4,600. At the same time, Jefferies has upgraded TCS share rating to ‘Buy’. Jefferies estimates TCS shares could go as high as ₹4,615.

(Disclaimer: The stock mentioned here is based on the advice of the brokerage houses. If you want to invest in any of them, consult a certified investment advisor first. News 18 of any profit or loss you make. will not be responsible).

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