We see strong tailwind for this technology bellwether and this should translate into steady predictable earnings growth. TCS is a core portfolio stock to be added in the current weak phase
PRO Only Highlights
– Quarterly performance largely backed by improved realisations
– Medium-term triggers China plus and protectionist measures for tyre industry
– Valuations not inexpensive; but improved medium-term outlook
TCS (CMP: Rs 3,258 Market Cap: Rs 12,05,335 crore) has reported a soft quarter after three consecutive quarters of strength, impacted principally by the pandemic-led disruption in India. Margin performance, however, was in line with expectations. The commentary continues to allude to favourable demand environment and deal win remains healthy. While the record employee addition is an indicator of good revenue visibility, supply side pressures are lurking with a slight increase in attrition. The management remains watchful in an…
