The return of pricing power for TCS amid a strong demand environment and the easing of supply crunch make for a decently strong outlook
A man walks out of the office of Tata Consultancy Services (TCS) in Mumbai. | File image (PC-Reuters)
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 3,860 Market Cap: Rs 14,27,796 crore) negotiated a seasonally weak quarter well although supply-side challenges marred the show. We are enthused by the strong demand environment and the gradual waning of supply-side challenges as well as possible uptick in pricing. A leader such as TCS would certainly ride the tailwinds. While growth rates may look uninspiring given its size, the large buyback of Rs 18,000 crore at a premium of 17 percent to the current market…
