TCS shares fell 6% in 5 days. Should you buy IT stock now?

“Due to the current Russia Ukraine crisis, the dollar index is expected to decline sharply. Therefore, export-oriented IT companies are going to benefit from this Russia-Ukraine conflict. Since TCS is a large export-oriented IT company, it should be considered The recent developments are going to be a big gainer. This time the announcement of share buyback will further increase the demand for TCS shares. Hence, this IT stock can be expected to take a hit “4200 levels in the next one month,” said Ravi Singhal, vice chairman, GCL Securities.

TCS, which has been undergoing some reforms recently, is a long-term bet in the IT sector in India. According to analysts, the stock not only has a great deal inflow, but also relatively low valuations and safe bets in the IT sector.

“The company is buying back shares at 20% higher price than the market and we can expect 50-70 acceptance ratio. Great opportunity at buyback value arbitrage and excellent long term prospects make TCS buyback a win-win opportunity for investors,” said Sonam Srivastava, Founder, Wright Research, SEBI Registered RIA.

IT stock has fallen more than 6% in the past five sessions ahead of the record date of its share buyback.

“The buyback was an opportunity for existing long-term shareholders to arbitrage through the tender of shares. Given the 15% reservation in the offer, based on the acceptance ratio, small shareholders had a high probability of benefiting from this offer. Recent in IT The declining stocks present a good opportunity for investment in the company.We believe that Blockchain, Cloud, Digitization, Analytics, Cyber ​​Security, Automation will receive large budget allocations from clients and large companies like TCS in the next few years would benefit.” Sharma, Co-Founder of Green Portfolio, SEBI Registered Portfolio Management Services.

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