Tata Consultancy Services
shares rose as much as 5.75 per cent on Friday, a day after posting
April-June earnings that beat estimates and maintaining an upbeat
outlook. June quarter earnings has reinforced TCS' standing as the
bellwether of India's IT industry.
TCS maintained an upbeat outlook, fuelled by demand from the United States, which is the biggest market for India's $108 billion IT sector.
TCS said consolidated net profit for the quarter ended June 30 rose to Rs. 3,831 crore from Rs. 3,280 crore a year earlier. That topped the Rs. 3,780 crore average of 24 analyst estimates, according to Thomson Reuters. TCS' stellar numbers were a function of strong sales volume, the best the company has posted in the last seven quarter. (Read: How TCS fared in Q1)
Brokerages were bullish on TCS' Q1, with CLSA saying TCS has hit yet another home run. TCS should maintain its premium valuation, CLSA said, adding the stock has a potential of giving a 10 per cent return from these levels. (Read: IT stocks up on TCS Q1)
CLSA has an "outperform" call on TCS, with a target of Rs. 1,830.
Credit Suisse, which also has "outperform" call on TCS, raised its target on the stock by 12 per cent to Rs. 1,975/share. Rich valuations can be sustained, Credit Suisse said.
Morgan Stanley, which has an "overweight" call on TCS (target Rs. 1,670) said FY14 was playing out as expected for the outsourcing major.
Goldman Sachs raised its target on TCS to Rs. 1,700 from Rs. 1,600 (rating: neutral) saying the bellwether is setting growth benchmarks for the industry.
TCS shares traded 5 per cent higher at Rs. 1,743.60 on the BSE as of 2.05 p.m.
TCS maintained an upbeat outlook, fuelled by demand from the United States, which is the biggest market for India's $108 billion IT sector.
TCS said consolidated net profit for the quarter ended June 30 rose to Rs. 3,831 crore from Rs. 3,280 crore a year earlier. That topped the Rs. 3,780 crore average of 24 analyst estimates, according to Thomson Reuters. TCS' stellar numbers were a function of strong sales volume, the best the company has posted in the last seven quarter. (Read: How TCS fared in Q1)
Brokerages were bullish on TCS' Q1, with CLSA saying TCS has hit yet another home run. TCS should maintain its premium valuation, CLSA said, adding the stock has a potential of giving a 10 per cent return from these levels. (Read: IT stocks up on TCS Q1)
CLSA has an "outperform" call on TCS, with a target of Rs. 1,830.
Credit Suisse, which also has "outperform" call on TCS, raised its target on the stock by 12 per cent to Rs. 1,975/share. Rich valuations can be sustained, Credit Suisse said.
Morgan Stanley, which has an "overweight" call on TCS (target Rs. 1,670) said FY14 was playing out as expected for the outsourcing major.
Goldman Sachs raised its target on TCS to Rs. 1,700 from Rs. 1,600 (rating: neutral) saying the bellwether is setting growth benchmarks for the industry.
TCS shares traded 5 per cent higher at Rs. 1,743.60 on the BSE as of 2.05 p.m.
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