TCS reports marginal drop in profit: Here's what brokerages have to say

SUMMARY

India's largest IT services firm Tata Consultancy Services (TCS) on Thursday reported a marginal drop in consolidated net profit at Rs 8,049 crore for the fourth quarter ended March 31 as against a net profit of Rs 8,126 crore, a year ago. Most brokerages remained bullish on the stock but cut its target price post the Q4 earnings. Here's what brokerages have to say about TCS earnings:

By CNBCTV18.comApr 17, 2020 9:04:57 AM IST (Published)

Jefferies on TCS: The brokerage has a 'buy' call on the stock with a target at Rs 1,900 per share. It added that near-term stock price weakness provides good opportunities for investors.

CLSA on TCS: The brokerage has a 'buy' rating on the IT major but cut its target to Rs 2,115 per share from Rs 2,550 earlier. It expects a recovery only in H2FY21 led by the company's strong order book.

Morgan Stanley on TCS: The brokerage is 'equal-weight' on the stock but reduced its target price to Rs 1,780 per share from Rs 1,825 earlier. It added that FY21 is likely to see heightened demand.

Investec on TCS: The brokerage maintains a 'hold' call on the stock with a target at Rs 1,822 per share. It added that the drop in revenue was largely by supply-side disruptions.

Phillip Capital on TCS: The brokerage maintains a 'buy' call but cut its target to Rs 1,875 from Rs 1,950. As per the brokerage, TCS is a fundamentally superior stock to own in one's portfolio.

Axis Cap on TCS: The brokerage has an 'add' call on the stock and cut its target to Rs 1,820 from Rs 1,900. It also reduced FY21 dollar revenue estimate by 4.5 percent.