Shares of Tata Consultancy Services jumped over 5 percent to hit a 52-week high on Thursday after the IT major beat Street estimates, registering a 6.7 percent sequential growth in profit in the September quarter at Rs 7,475 crore. The TCS board has also approved a share buyback up to Rs 16,000 crore at Rs 3,000 per share.

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The stock, which was the top gainer on both the benchmarks, rose as much as 5.2 percent to its 52-week high of Rs 2,877.90 per share on NSE. It also lifted the Nifty IT index to a 16-year high, up over 4 percent.

Other IT stocks also rose in early deals on positive sentiment post the TCS Q2 results. Wipro, HCL Tech, Tech Mahindra, Infosys, Mindtree were up between 3 percent and 5.3 percent.

Consolidated revenue from operations for the quarter also grew by 4.7 percent sequentially to Rs 40,135 crore, while the company registered a 4.8 percent QoQ growth in constant currency and 7.2 percent in dollar revenue for the quarter ended September 2020.

Most brokerage houses also remained bullish on the stock post the earnings.

TCS kick-started Q2 earnings with a good quarterly performance, beating estimates on all fronts, said CLSA. It maintains an 'outperform' call on the stock with the target raised to Rs 2,750 per share from Rs 2,610 earlier. CLSA also raised its FY22/23 EPS estimates by 3 percent.

Meanwhile, Jefferies said that the IT major beat on margin mainly driven by higher-than-expected revenue growth. It maintains a 'buy' call on the stock with a target at Rs 2,580.

However, Citi retained a 'sell' call on the stock with a target at Rs 2,350 per share. It raised FY22/23 estimates for TCS by 1-3 percent but added that near term commentary remains muted.

(Edited by : Ajay Vaishnav)

First Published:Oct 8, 2020 9:36 AM IST