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TATA CONSULTANCY SERVICES LTD (TCS)
PRICE: RS.2636 RECOMMENDATION: ACCUMULATE
TARGET PRICE: RS.2789 FY16E P/E: 20.2X
The management has maintained its outlook of beating FY14 growth
revenue rate in FY15. EBIT margins will likely be around the 27% mark.
Growth in 2Q is expected to be driven by all verticals except Insurance. The
JV with Mitsubishi is expected to start contributing in 2Q, with revenues of
about $100mn. We expect FY15 USD revenue growth, including Mitsubishi
JV, to be 17.5% (16.2% in FY14E) and FY16 growth to be 13%. EPS for FY15
and FY16 are expected to be at Rs.113 per share and Rs.130 per share. We
have been maintaining our positive view on medium term demand growth,
over the past few quarters. We accord a premium to TCS as compared to
peers. In the past several quarters, TCS has reported industry - leading
growth rates with sustained margins. We revise PT to Rs.2789 (Rs.2519),
based on FY16E estimates. The stock has risen post 1QFY15 results. Looking
at the 6% upside, we maintain ACCUMULATE (Buy the stock at declines).
�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
��
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TATA CONSULTANCY SERVICES LTD (TCS)
PRICE: RS.2636 RECOMMENDATION: ACCUMULATE
TARGET PRICE: RS.2789 FY16E P/E: 20.2X
The management has maintained its outlook of beating FY14 growth
revenue rate in FY15. EBIT margins will likely be around the 27% mark.
Growth in 2Q is expected to be driven by all verticals except Insurance. The
JV with Mitsubishi is expected to start contributing in 2Q, with revenues of
about $100mn. We expect FY15 USD revenue growth, including Mitsubishi
JV, to be 17.5% (16.2% in FY14E) and FY16 growth to be 13%. EPS for FY15
and FY16 are expected to be at Rs.113 per share and Rs.130 per share. We
have been maintaining our positive view on medium term demand growth,
over the past few quarters. We accord a premium to TCS as compared to
peers. In the past several quarters, TCS has reported industry - leading
growth rates with sustained margins. We revise PT to Rs.2789 (Rs.2519),
based on FY16E estimates. The stock has risen post 1QFY15 results. Looking
at the 6% upside, we maintain ACCUMULATE (Buy the stock at declines).
�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��
��
LINK
http://www.kotaksecurities.com/pdf/dmb/MorningInsight09092014ep.pdf
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