Why does ICICI Sec see good upside for TCS in the 3-month target frame?

“Nifty IT index has been seen forming a base above the recent 11-month declining channel breakout area over the past six weeks indicating the end of the corrective phase. One of the heavyweight TCS has recently generated a breakout above the falling channel that covers the entire decline of calendar year 22 and is seen consolidating above the same around the 52 week EMA. Post the quarterly numbers, it is resuming its upward move, thus offering a new entry opportunity with favorable risk-reward, said research analysts at ICICI Securities.

“Over the past six months, the stock has been seen consolidating 3430-2950. We expect the share price to resolve above the upper band of the range of the last six months 3430, which will accelerate further in coming months • We expect the stock to move towards 3625 in coming months as it is 80% retracement of April-Sep 2022 decline ( 3835-2926),” the analysts said.

He further said in his research note that “TCS is a leading Indian IT services company with a presence in more than 55 countries and a total employee strength of more than 6 lakh. The company is involved in BFSI, Retail & CPG, Lifesciences & Healthcare, Provides IT services, consulting and business solutions across various verticals like manufacturing, hi-tech etc. TCS revenue to grow at 12.9% CAGR over FY2017-2022. We expect it to grow at 11% over FY22-25E We also expect EBIT margin to improve by 110 bps to 25.3% by FY2015 due to better utilization, lower sub-contractor cost and lower attrition. Revenue growth is expected to be driven by strong TCV. TCS is eyeing to reach US$ 50 billion revenue by FY 30 ie at 9% CAGR, which will be aided by continued spending by the global organization on cloud transformation (multi-year programme). It is one of the key beneficiaries of vendor consolidation across customers Hope to be.”

Tata Consultancy Services (TCS) has declared third interim dividend 8 more special dividend 67 taking a total dividend per share 75 per equity share for FY23. Equity shareholders of the Company whose names appear in the register of members of the Company or in the records of the depositories as beneficial owners of shares as on January 17, 2023 – the record date established for the purpose – will receive the third interim dividend and the third interim dividend on February 3, 2023 special dividend. TCS net profit up nearly 11% for Q3 FY23 10,846 crore to 9,806 crore in the same quarter last year. The IT giant reported revenue of Rs. 58,229 crore, a growth of 19% YoY. TCS shares closed on NSE today Closes at 3,337.55, up 0.27% from previous close 3,328.70. The stock recorded a total volume of 2,250,391 shares as compared to 20-day average volume of 1,686,810 shares.

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