INSUBCONTINENT EXCLUSIVE:
investors.
The brokerages cut target price by 0.5-16%
(quarter-on-quarter) disappointed, largely due to higher subcontracting charges
FY19-FY21 period by 2-3% and trimmed margin assumptions by 70 basis points to 90 bps.
CLSA has cut margin estimates by 60-70 bps to reflect
growth-margin trade off.
Brokerages also believe that premium that TCS trades at is substantial and there are risks related to macro and
currency factors.
The steepest c ut in target price came from Investec, which slashed target price by nearly 16% and trimmed EPS estimates
for FY20 and FY21 by 3.3-3.5%.
While cutting target price by 3% on TCS, Jefferies has maintained buy rating on stock as it believes that
company is best placed to deliver double-digit revenue growth over FY19-FY21 among tier-1 IT companies.
CLSA believes that good deal-wins,
expansion in scope, solid execution and strong commentary suggest TCS is likely to retain growth leadership into FY21
