BUY TCS :: Kotak Securities

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
RECOMMENDATION: BUY
TARGET PRICE: RS.2786 FY16E P/E: 19.5X
The management has largely maintained its cautious view for 3QFY15, in
the mid-quarter update. While growth will be muted because of furloughs
and the sentiment is weak, TCS has not seen any cancellations or deferrals
of projects. Pricing is also relatively stable. Spends in Digital are also
growing in line with expectations. EBIT margins will likely be in the 26% -
28% band. Overall, the quarter will be a muted one. We maintain our
positive bias for TCS over the medium term. 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.2786
(Rs.2838), based on FY16E estimates. The stock has fallen post 2QFY15
results. Looking at the 14% upside, we recommend BUY (ACCUMULATE,
earlier). The stock may remain weak till the 3Q results, though.

LINK

http://www.kotaksecurities.com/pdf/pdfs/FUNDTCS15122014095709.pdf