Anil Singhvi shares view on TCS: What to do with Tata group stock after Q4 results
Anil Singhvi shares views on TCS stock: Zee Business Managing Editor Anil Singhvi points out that the TCS Q4 results are a mixed bag. The IT companys profit, revenue and margin are slightly below estimates though new orders are marginally better than expectations, says market wizard Anil Singhvi. However, there is no silver lining in new orders, he points out.
Anil Singhvi shares views on TCS stock: Zee Business Managing Editor Anil Singhvi highlighted that the TCS Q4 results were a mixed bag, with the Tata group IT major slightly falling short of analysts' estimates in terms of profit, revenue and margin, but marginally above expectations on the new orders front. However, "there was no silver lining in terms of new orders", said the market wizard.
Sharing his take on the Tata Consultancy Services management commentary, Anil Singhvi said: "Not too good, not too bad, but neutral." All in all, it was a mixed bag, he said.
Anil Singhvi's take on what to do with TCS shares
The market expert suggests taking a call basis moves to the tune of 1.5-2 per cent on either side. "Book profit if it rises 1.5-2 per cent, and buy if it falls by the same magnitude," he told Zee Business viewers.
How to trade TCS shares: What Anil Singhvi recommends
Sharing his outlook on TCS shares, Anil Singhvi pointed out that brokerages have reduced their earnings per share (EPS) estimates for the IT company by two per cent.
Its valuation multiple is at 24 times its estimated earnings per share for the financial year ending March 2024, he said. "Historically, this is not really considered expensive but in case of TCS, it is skewed towards being expensive... There is scope for the TCS valuation to turn slightly more attractive. Investors are short on the stock," he said.
Those looking for guidance on IT sector have to wait for Infosys Q4 results: Anil Singhvi
Now that the TCS Q4 results are behind, investors looking for guidance on the Indian IT space will have to wait for Infosys, he said.
Infosys is scheduled to report its financial results for the January-March 2023 period later in the day. What to expect in Infosys Q4 results
Here's your quick guide to TCS Q4 results and TCS dividend
- Net profit up five per cent at Rs 11,392 crore vs Zee Business estimate of Rs 11,600 crore
- Revenue growth at 1.6 per cent to Rs 59,162 crore vs Zee Business estimate of Rs 59,200 crore
- Dollar revenue at $7,195 million vs Zee Business estimate of $7,202 million
- Margin at 24.5 per cent vs Zee Business estimate of 24.8 per cent
- A proposed final dividend of Rs 24 per share subject to shareholders' approval
Read more on key takeaways from TCS Q4 results
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