TCS Q4 Results Review - Mega Deal Wins, Margin Expansion Key Positive: IDBI Capital

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..IDBI Capital Report.Tata Consultancy Services Ltd. Q4 FY24 profit numbers were above consensus estimates. While the macro is uncertain, TCS continues to win cost optimisation, vendor consolidation and growth and transformation deal. The company has also won mega deals which is expected to ramp up in FY25E. We believe mega deals will contribute ~3% to company’s topline. The company’s order book for Q4 and FY24 stood at $13.2 billion (1.8 times books to bill) and 42.7 billion (1.5 times book to bill). This coupled with improvement in banking, financial services and insurance, traction in Gen AI, Cloud modernisation, ERP modernisation will lead to tailwind in revenue and margins. Hence, we have upgraded our earnings per share estimates by 0.8% and 3.7% for FY25E and FY26E. This has prompted us to revise target price upwards from Rs 4,000 to Rs. 4,300 (26 times FY26E EPS). However, considering the recent run up in price we maintain our Hold rating on the stock..Click on the attachment to read the full report:.TCS Q4 Results Review - FY25 To Be Better But Not By Much: Nirmal Bang.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 Q4 Results Review - Mega Deal Wins, Margin Expansion Key Positive: IDBI Capital

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