BSE Code: | NSE Code: | ISIN: | Sector:
Research Report Detail
|Report Date||Call||Price@Call||Target Price
|Current Status||Time Horizon|
|Target Hit|| Long (1Y)
Religare recommends sell on TCS
Religare has a sell call on TCS it says TCS reported a weak 0.3 per cent QoQ dollar revenue growth in Q2FY17 led by a 1.3 per cent QoQ growth in volumes. EBIT margins were better than estimates and came in at 26 per cent led by lower employee and equipment & software costs. However, amid falling growth, this does not give us confidence of margin sustainability. While, TCS expects a better second half ahead, we have already factored this into our estimates. We think earnings expectations are not low and valuations at 17 times FY18 estimated earnings are full.