My Application Form Status

Check the status of your application form with Angel Broking.
  • Companies
  • Everything else
Search

Tata Consultancy Services Ltd Research Report - 21st Jan 2016

IT | Published on Jan 15th 2016

IT

TCS posted a lower than expected top-line for 3QFY2016, while the EBDITA and net profit were in line and higher than expected, respectively. The company posted a 0.3% sequential de-growth in USD revenues to US$4,145mn (V/s our expectation of US$4,177mn). In constant currency terms (CC), the company posted a qoq revenue growth of 0.5%, mainly impacted by the Indian business. The international business posted a 1.1% qoq growth during the quarter. On the operating front, the EBIT margin came in at 26.6% (V/s 26.4% expected) a downtick of 47bp qoq. Consequently, the PAT came in at Rs6,110cr (V/s Rs5,999cr expected), a growth of 0.9% qoq. While we have downgraded the numbers, we maintain our Buy on the stock with a target price of Rs2,854. Quarterly highlights: TCS posted a 0.3% sequential de-growth in USD revenues to US$4,145mn (V/s an expectation of US$4,177mn). In CC terms, the company posted a qoq growth of 0.5%, mainly impacted by the Indian business. The volume growth during the quarter was of 0.4% qoq. On the operating front, the EBIT margin came in at 26.6% (V/s 26.4% expected) a downtick of 47bp qoq. Consequently, the PAT came in at Rs6,110cr (V/s Rs5,999cr expected), a growth of 0.9% qoq. The employee utilization was 84.9% excluding trainees and 80.9% including trainees, while attrition was 15.3% in IT services and 15.9% including the BPS. Overall attrition was down 30bp qoq. Outlook and valuation: TCS’ commentary remained largely unchanged with the Management highlighting that it had not received any ‘negative’ indications on IT budgets/ spending trends. Over FY2015-17E, we expect TCS’ revenue to post a CAGR of 10.5% in USD terms and of 13.8% in INR terms.

Download Full Report

Accumulate

CMP 2,283
Target Price 2,854
Investment Period12 Months

Stock Info

MCAP BSE (Rs in Cr)432,883.31
MCAP NSE (Rs in Cr)432,656.72
P/E (x)17.08
EPS (Rs.)128.66
BV (Rs.)351.48
Div Yield (%)1.98
FV (Rs.)1.00
P/BV (x)5.67
EV/Sales (x)3.93
EV/EBITDA (x)13.96

Shareholding Pattern (%)

Promoter73.0
Foreign17.0
Institution5.0
Public & Others5.0
Corporate0.0
Grand Total100.0

Trade Securely

AngelEye

Portfolio Tracking & Trading Application View Demo