Should you buy/hold TCS shares down on lower-than-expected profits?

What do brokerages recommend tcs shares Post Q3 Results

Jefferies

“TCS’s 3QFY23 revenue beat estimates but missed 11% YoY profit due to forex loss. While TCS delivered healthy growth in 3Q, falling headcount and book to bill ratio point to a sharp growth moderation in FY24. We revise our estimates marginally and expect TCS to deliver 11% EPS CAGR during FY 23-25. While TCS is better positioned in the bearish environment, its rich valuations will weigh on the stock’s performance. The valuation premium of TCS may be limited to the upside. Maintain Hold with target price of 3,500.”

Antique Stock Broking

“While TCS remains one of the best managed companies among Indian IT services companies with the ability to engage with large clients for their massive transformation programmes, we downgrade the IT stock from buy to hold. We has also cut its target price 3,600 (from 3,700) as we modestly lower our CC growth forecast and margin assumptions, while macroeconomic uncertainty in the US could pose a downside risk.”

dam capital

“TCS is rightly positioned to take advantage of the expected growth in the industry given its size, capabilities and portfolio span. So far, it has not only maintained market leadership, but also delivered superior execution, generating consistently high margins (relatively) and industry-leading return ratios. We maintain our multiples of 24X FY25 EPS. our target price is 3,580. Though we remain positive on the company, but maintain neutral rating given its rich multiples.”

wealth

“Soft TCV, flat net headcount addition, weak demand in Europe suggest adverse risk-reward as we believe valuations capture stability but not risks to further weakening macros, and thus TP” maintains our low rating with 3,420.”

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.