TCS Share Price: Tata Consultancy Services (TCS) shares faced selling pressure on Monday after foreign brokerage Citi maintained its 'sell' rating on the stock, reducing its target price by Rs 75 to Rs 3,935 per share. The stock of the Tata group IT giant declined by as much as Rs 67.6, or 1.5 per cent, to Rs 4,473 apiece on BSE. The brokerage's target implies a potential downside of 12.0 per cent in the stock from its previous close. 

Citi maintains 'buy' on TCS, revises target to Rs  3,935 from Rs 4,010

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TCS aims to achieve an aspirational margin band of 26-28 per cent, according to Citi. 

Citi analaysts pointed out that demand in the UK and other European markets appears to be softer compared to North America and furloughs at similar levels as last year.     

They also said that for TCS, the BSNL project may remain stable or see a slight decline in the December quarter followed by some tapering afterwards. 

Last year, a TCS-led consortium secured a Rs 15,000-crore contract from BSNL to deploy a 4G network across the country.

TCS shares

At 1:50 pm, the TCS stock was down 1.4 per cent for the day at Rs 4,409.6 apiece, underperforming a decline of half a per cent in the headline Nifty50 index. The Nifty IT gauge, whose 10 constituents include TCS , Infosys and HCLTech, was down 0.9 per cent amid market-wide weakness across Dalal Street. 

ALSO READ: TCS, Bharti Airtel, ICICI Bank, 2 other blue-chip firms gain Rs 1.1 lakh crore in mcap in a week

TCS Stock Past Performance

TCS shares have risen 14.3 per cent in the past one year, almost in line with a 15.1 per cent rise in the headline Nifty50 index. 

The TCS stock has underperformed the IT index's 27.5 per cent rally during this period.

 

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