TCS share price NSE, TCS Q3 Results: After the technology major TCS reported better-than-expected Q3 performance, shares of the company in early trade on Friday, January 12, gained over 3 per cent to Rs 3,857.95 apiece at day's high. Nonetheless, major foreign brokerages are divided in their views on the stock.

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The IT technology services provider during the quarter ended December posted PAT at Rs 11,058 crore, which is a 2.5 per cent decline on a sequential basis. Nevertheless, PAT logged growth of 1.95 per cent on a year-on-year basis.

Revenue from operations inched 1.49 per cent higher on a quarter-on-quarter (QoQ) basis, while it grew 4.04 per cent year-on-year (YoY) to Rs 60,583 crore. Zee Business Research desk estimated revenue to come in at Rs 59,900 crore.

Margins at the company also increased during the Q3 period to 25 per cent from 24.3 per cent in the preceding quarter.

TCS (CMP: 3736) 
Brokerage  Rating  New Target  Old Target 
Morgan Stanley  Equalweight  3900   
JP Morgan   Neutral  3700   
Goldman Sachs  Buy  4310  4200 
Jefferies  Hold  4000   
HSBC  Hold  3640  3625 
Nomura  Reduce  3160  3120 
Macquarie  Outperform  4210   

Jefferies views TCS Q3 as broadly in line; however, broad-based weakness continues, deal bookings were soft, and a sharp headcount decline suggests that demand recovery is yet not in sight. The brokerage noted that the 70 bps margin expansion was the key positive surprise in 3Q.

Nomura, while maintaining a 'reduce' call, said the company posted good execution in 3Q; nevertheless, it missed deal wins. Further, it highlighted that demand pickup visibility remains low. Not many levers exist for significant margin expansion, added the brokerage.