Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TCS has been a consistent outperformer
Over the past six quarters, TCS has consistently out-performed industry
and comparable peers both on revenue growth and margin fronts.
Multiple large deal wins and guided strong employee addition imply that
robust revenue traction would continue in the medium term. The key
edge for TCS has been its strong go-to-market and commendable
execution (sharpened post the proactive restructuring in CY08).
Further, stability of top management vis-à-vis peers provides better
execution comfort.
Discretionary exposure relatively less; well-diversified service
mix to sustain growth
TCS’s end-to-end services approach and one of the highest exposures
to emerging markets has stood in good stead. Sustained broad-based
growth through FY11 validates the same. This facet gains more
prominence in the current scenario of increasing growth challenges in
the developed markets. Lower discretionary exposure also bodes well
as clients can possibly delay decision making in an uncertain
environment. BFSI, the largest vertical also remains stable as
commented by the management with the risk/compliance related spend
(non-discretionary) expected to continue its decent traction.
Margin management strong; expect it to remain range bound
TCS with its commendable execution and supply side management
delivered higher margin than Infosys for the first time in Q1 FY12.
Admirable SG&A management, better FPP execution, pricing and
structural up-tick in utilization have helped protect/improve its margins.
Strong traction in transformation projects, platform BPO, SMB related
services along with operational levers such as SG&A leverage and
improving employee pyramid are expected to keep margin range
bound.
Relative out-performance to continue; recent sharp correction
provides a good entry point
With minimal hiccups on multiple counts – supply side, organization
structure, industry exposure (especially telecom), TCS should continue
to capitalize and maintain industry-leading growth. Management
commentary has been re-assuring as yet with no material impact
expected from the ongoing macro weakness. The stock has corrected
sharply (~10%) over the past few days providing an attractive entry
point to long-term investors. On the back of sustained outperformance,
TCS has earned the reputation of ‘Safe Haven’ within the sector.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
TCS has been a consistent outperformer
Over the past six quarters, TCS has consistently out-performed industry
and comparable peers both on revenue growth and margin fronts.
Multiple large deal wins and guided strong employee addition imply that
robust revenue traction would continue in the medium term. The key
edge for TCS has been its strong go-to-market and commendable
execution (sharpened post the proactive restructuring in CY08).
Further, stability of top management vis-à-vis peers provides better
execution comfort.
Discretionary exposure relatively less; well-diversified service
mix to sustain growth
TCS’s end-to-end services approach and one of the highest exposures
to emerging markets has stood in good stead. Sustained broad-based
growth through FY11 validates the same. This facet gains more
prominence in the current scenario of increasing growth challenges in
the developed markets. Lower discretionary exposure also bodes well
as clients can possibly delay decision making in an uncertain
environment. BFSI, the largest vertical also remains stable as
commented by the management with the risk/compliance related spend
(non-discretionary) expected to continue its decent traction.
Margin management strong; expect it to remain range bound
TCS with its commendable execution and supply side management
delivered higher margin than Infosys for the first time in Q1 FY12.
Admirable SG&A management, better FPP execution, pricing and
structural up-tick in utilization have helped protect/improve its margins.
Strong traction in transformation projects, platform BPO, SMB related
services along with operational levers such as SG&A leverage and
improving employee pyramid are expected to keep margin range
bound.
Relative out-performance to continue; recent sharp correction
provides a good entry point
With minimal hiccups on multiple counts – supply side, organization
structure, industry exposure (especially telecom), TCS should continue
to capitalize and maintain industry-leading growth. Management
commentary has been re-assuring as yet with no material impact
expected from the ongoing macro weakness. The stock has corrected
sharply (~10%) over the past few days providing an attractive entry
point to long-term investors. On the back of sustained outperformance,
TCS has earned the reputation of ‘Safe Haven’ within the sector.
No comments:
Post a Comment