Tata Sons, the holding company of the Tata Group has decided to sell a small stake in Tata Consultancy Services (TCS). This will help the company raise around Rs 8,000 crore, which could be used to invest in other group companies.

Share Market Live

NSE

Ravi Menon, Analyst-IT Services at Elara analysed that typically large block deals always had a discount. "The increase in free float will increase its Nifty weightage and that will be a minor positive driving more demand for the stock", he said.

Menon suggested that though, from a long-term perspective, TCS still remains in the top pick, HCL Technologies or Wipro could give better returns over TCS as the recent price up-move has been a little too sharp.

"Over the next 12 months, our price target for TCS is Rs 3,050", said Menon.

He also added that Cyient and L&T Technology Services (LTTS) were benefiting from a secular upfront in engineering services.

"Target price for LTTS is Rs 1,170 but if it does correct, we will look at buying into that and target price for Cyient is Rs 700 and we have a very positive outlook for Cyient", he added.

For full interview, watch accompanying video…

First Published:Mar 13, 2018 4:57 AM IST