Wednesday, June 23, 2021
HomeUncategorizedTCS soars over 4pc to near record-high on ‘superlative’ Q1

TCS soars over 4pc to near record-high on ‘superlative’ Q1

Tata Consultancy Services shares jumped over 4 per cent to near record high on Friday after India’s biggest outsourcer surpassed Street estimates in the June quarter.

The stock was the top gainer on the 50-share Nifty benchmark in early trade. At its day high, TCS shares rose to Rs. 2,485 and traded near their all-time high of Rs. 2,498.

Analysts were upbeat on TCS’ strong performance in the June quarter. Credit Suisse said TCS has surprised despite lofty expectations.

Macquarie said the company is delivering on tough expectations, while CLSA termed TCS’ performance as “superlative”.

TCS posted a consolidated net profit of Rs. 5,058 crore on sales of Rs. 22,111 crore in the first quarter. Analysts polled had estimated the company to report a net profit of Rs. 4,852 crore on sales of Rs. 22,044 crore.

TCS has increased profit over the last two years at a faster pace than rivals Infosys and Wipro, which have both had internal management changes.

The Mumbai-based firm is estimated to post revenue growth of 16 per cent in the next 12 months, compared with Infosys’ 8.3 per cent and Wipro’s 9.9 per cent.

Deutsche Bank said TCS has made a solid start and added that the stock remained its top buy in the IT space. However, Citi said premium valuations may limit upside in the stock.

TCS traded 3.7 per cent higher at Rs. 2,471, outperforming the broader IT index, which rose over 2 per cent.

Most Popular

- Advertisment -