Kim Eng India maintains 'buy' on TCS

Written By Unknown on Senin, 11 Maret 2013 | 21.43

MUMBAI: Kim Eng India has maintained its 'buy' recommendation on IT major Tata Consultancy Services (TCS) and revised its target price upwards on expectations that FY14 will be a better year than FY13 for the company's growth.

According to the report, TCS is seeing good momentum in small to mid-sized project-based deals for discretionary IT services in the US. The company's mid-large deals for traditional IT services in Europe have also picked up.

"Although growth in the telecom and hi-tech segments is expected to be muted, it would be off-set to a large extent by strong growth in BFSI, retail and energy/utilities segment. We continue to expect TCS to grow faster-than-industry and maintain our FY14F revenue target of Rs 729 billion," the report said.

At an analysts meet, the company reiterated its growth outlook for FY14 based on current interaction with its clients.

It expects FY14 growth to be driven by uptick in discretionary IT projects in the US and strong momentum in traditional IT services in Europe. It continues to gather strong momentum in new technologies like cloud, mobility, and analytics.

TCS has outperformed benchmark indices in the past three months on the back of consistent higher-than-sector growth and improving IT spending in its largest market of the US. The rupee depreciation against the dollar has also drived the stock price higher.

"We believe that there is an upside trigger to our forecast due to stronger-than-expected growth in the US market. In our view, PER of 22x FY14F (20x earlier) is reasonable. Therefore, we increase the target price to Rs 1,810 per share," the report added.


Anda sedang membaca artikel tentang

Kim Eng India maintains 'buy' on TCS

Dengan url

http://pijitsehat.blogspot.com/2013/03/kim-eng-india-maintains-buy-on-tcs.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Kim Eng India maintains 'buy' on TCS

namun jangan lupa untuk meletakkan link

Kim Eng India maintains 'buy' on TCS

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger