TCS Q3 Review - Underwhelming Print In A Furlough Quarter; Retain 'Buy' On Positive Outlook: ICICI Securities

TCS won several large deals across verticals. Europe deal wins were also robust, the acceleration in U.S. and BFSI total contract value denotes a healthy demand environment going forward..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..ICICI Securities Report.Tata Consultancy Services Ltd. reported revenue contraction of 1.7% QoQ USD/ flat growth constant currency, miss on I-Sec estimates in a furlough quarter (Q3 FY25). Growth was impacted by weakness in lifesciences, manufacturing, communication and BSNL deal rampdown. Management acknowledged early signs of discretionary spend recovery, incrementally positive to previous quarter, especially for BFSI, retail, hi-tech and revival of macroeconomic indicators in North America, echoed by broadbased total contract value of $10.2 billion.Deal pipeline is strong with mega deals in the funnel and efforts are underway to backfill BSNL deal phase-out. TCS is trading at 6% discount to NIFTY IT versus five-year avg. premium of 14.2%, making valuations attractive. Retain Buy on positive outlook on an unchanged 12 months forward multiple of 31 times on Q3 FY26E-Q2FY27E EPS of Rs 154 with a target price of Rs 4,770..Click on the attachment to read the full report:.'Add' TCS On Large Deal Wins; 'Reduce' Tata Elxsi On Weak Quarter, Says HDFC Securities After Its Q3 Results.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

TCS Q3 Review - Underwhelming Print In A Furlough Quarter; Retain 'Buy' On Positive Outlook: ICICI Securities

TCS is trading at 6% discount to NIFTY IT versus five-year average premium of 14.2%, making valuations attractive, says ICICI Securities.

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TCS Q3 Review - Underwhelming Print In A Furlough Quarter; Retain 'Buy' On Positive Outlook: ICICI Securities

TCS is trading at 6% discount to NIFTY IT versus five-year average premium of 14.2%, making valuations attractive, says ICICI Securities.

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