TCS’s first quarter results have been better than expected. Brokerages are also bullish on this stock of Tata Group. Today TCS share opened with gains.
New Delhi. After Tata Consultancy Services (TCS) announced its first quarter results for the current financial year, the company’s shares are witnessing a rise today. Shortly after the market opened, TCS shares rose nearly 3 per cent to Rs 4044 (TCS Share Price) on BSE. Today the stock opened at ₹ 4,001.15 above yesterday’s closing price of ₹ 3,922.70. Analysts have given a positive response on TCS’s Q1 performance. Many brokerage firms have advised to buy or ‘hold’ TCS shares. Analysts are bullish on this IT stock due to TCS’s strong revenue growth and market leadership.
In the first quarter of the current financial year, TCS has made a profit of Rs 12,040 crore, which is 9 per cent more on an annual basis. In the first quarter of the financial year 2023-24, the company had earned a net profit of Rs 11,074 crore. In the first quarter of the current financial year, TCS’ revenue from operations increased by 5 per cent to Rs 62,613 crore. In the same quarter of the previous financial year, the company’s revenue 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 for investors.
better than expected results
According to a report by Live Mint, TCS’s Q1 results have been better than most analysts’ estimates. Sharekhan’s Sanjeev Hota had predicted a 1.5 percent increase in TCS revenue on a quarterly basis. Whereas the increase has been 2 percent. Although the margin declined by 130 basis points due to salary hike, it has still been better than expected. On the results, Sanjeev said, “TCS’s Q1 figures are positive for IT stocks overall. We maintain a ‘buy’ rating on the stock.” He said that after the salary hike, EBIT margin is expected to move towards the range of 26-28%.
Brokerage houses have maintained the rating
After the quarterly results, most brokerage firms have not changed their stance on TCS shares. Motilal Oswal Financial Services has maintained its buy recommendation on the stock and has set a target price of 4660. Kotak Institutional Equities has also maintained its ‘add’ rating for a target price of Rs 4500. Global brokerage firm UBS has also advised to buy this stock with a target price of Rs 4600. At the same time, Jefferies has upgraded the rating of TCS shares to ‘buy’. Jefferies estimates that TCS shares can go up to ₹ 4,615.
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FIRST PUBLISHED : July 12, 2024, 10:51 IST