6 hours ago
SUMMARY
TCS Q3 revenue missed estimates but was largely in line with expectations, with no downgrades.
By CNBCTV18.com January 10, 2025, 12:14:32 PM IST (Updated)
1 / 5
1: The stock has underperformed peers over the last one year. TCS +13% Infosys +29% HCLTech +31% Wipro +32%
2 / 5
2: Infosys valuations caught up with TCS, both trade at 27x FY2e PE (historically Infosys traded at a discount).
3 / 5
3: Q3 revenue miss, but largely inline with estimates and no downgrades.
4 / 5
4: Deal wins and commentary upbeat - The management said that some improvement have been seen around discretionary spends in BFSI and retail. - The deal cycle has shrunk by a few weeks, which is positive sign for the future. - The current sentiment is more positive on CY25. - FY26 should be better than FY25 - Initial conversation on Client budgets suggest positive bias.
5 / 5
5: Global brokerage firms CLSA has upgraded TCS, while HSBC said that the company's performance has bottomed out. CLSA has upgraded to 'Outperform' from its earlier 'Hold' rating, with a price target of ₹4,546 from ₹4,251 earlier. TCS valuation as now attractive both relative global/Indian peers and its five-year history. HSBC said that the performance seems to have bottomed out, though we still see downside risk to FY26 consensus; Hold with price target of ₹4,540.
