TCS share price spikes 2% on impressive Q3FY22 sales growth, and may rise up to 30%; experts recommend buying TCS.

TCS’s share price rose more than 2% to Rs 3,944.40 a share on the BSE on Thursday, a day after the IT giant reported a 12.36 % on-year increase in aggregate net profit to Rs 9,769 crore for the Q3 ended December 31, 2021. TCS also declared an interim dividend of Rs 7 per equity share and authorised Rs 18,000 crore share purchase at Rs 4,500 per share. TCS stocks are presently hovering around their 52-week high of Rs 3,990.

Brokerage companies have advised investors to purchase TCS stock following the October-December financial reports, predicting a 30% increase from present levels. TCS’ sales performance was in line with expectations, but the margin fell short, according to experts. Analysts feel that ongoing hiring, with the greatest recorded net personnel gain in Q3, suggests the longevity of a robust demand situation.

Emkay Global has issued a strong buy recommendation on Tata Consultancy Services, with a target price of Rs 4150. TCS is now trading at Rs 3875 on the market. Analysts have established a time frame of a year for Tata Consultancy Services’ pricing to attain a predetermined objective.

Founded in 1995, Tata Consultancy Services Ltd., is a Large Cap company in the IT Software industry (with a market capitalization of Rs 1432550.12 Crore).

For the fiscal year ending 31-Mar-2021, Tata Consultancy Services Ltd.’s primary products/revenue segments were Consultancy Income and Sale of Equipment & Software Licences.

For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 47978.00 Crore, a 4% increase over the previous quarter’s Total Income of Rs 46132.00 Crore and a 16.88 percent increase over the previous year’s same quarter Total Income of Rs 41049.00 Crore. The company generated a total profit after tax of Rs 9653.00 Crore in its most latest quarter.

Reasons for Investing

After accounting for Q3 success and repurchase, the brokerage reduces FY22/23/24 EPS projections by -1.5 percent /0.5 percent /0.2 percent. It retains a Buy rating with a target price of Rs4,150 (Rs4,100 previously) at 30x Dec’23E EPS, based on sustained contract wins and continuous execution.