TCS hits six-month high; regains Rs 8 trillion market-cap mark
Posted on 16th April 2019 |
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Tata Consultancy Services (TCS) hit a six-month high of Rs 2,149, up 2 per cent on Tuesday, extending its Monday’s 5 per cent rally on the BSE, after the company reported better than expected 2.4 per cent growth in constant currency (CC) revenue in the March 2018 quarter of financial year 2018 - 19 (Q4FY19).
The stock of IT major hit its highest level since October 4, 2018 on the BSE. Boosted by 7 per cent rally in stock post March quarter results, the market valuation of TCS regained the Rs 8 trillion-mark today to reach Rs 8.04 trillion at 12:50 pm, BSE data shows.
GIven the last two day's rally, TCS is now just 6 per cent away from its all-time high price of Rs 2,273 hit on October 1, 2018. The Tata Group company had commanded a market capitalisation of Rs 8.46 trillion then.
Strong results
Most analysts have maintained a ‘buy’ rating on TCS post its Q4FY19 numbers on expectation of double-digit growth in FY20 on improved deal wins, stronger exit rate, broad-based growth, robust pipeline and stable pricing environment.
“TCS’ strong TCV wins, improving YoY growth in BFSI, all-round vertical growth, rising digital revenue and healthy 4Q exit rate drive confidence on underlying momentum, and we expect the IT major to comfortably post double-digit revenue growth in FY20E (>11 per cent),” analyst at Reliance Securities said in a result update note.
The brokerage firm said it has encouraged with margin management in a challenging environment. High payouts to shareholders in the form of buybacks, along with good visibility will ensure the stock remains at elevated valuations, it added with target price of Rs 2,300 on the stock.
"We upgrade TCS to Neutral and prefer TCS over Infosys, as we are more comfortable on growth given: 1) strong exit growth of 12.7% in 4Q; 2) broad-based growth across segments, with ~7 of 8 verticals close to or higher than double digits in 4Q and continued traction in developed markets led by the European Union; and 3) strong deal wins of $22 billion in FY19. This positions TCS well for growth for FY20F, in our view; we expect ~8.8% CC growth," Rishit Parikh, an analyst with Nomura wrote in a post results note.
Analysts at Elara capital expect growth to accelerate in FY20, given deal wins of $6.2 billion, up from $5.9 billion in Q3FY19, and net hiring of 29,287 over FY19 vs 7,775 in FY18 despite subcontracting cost increase of 16.7 per cent YoY in US dollar terms over FY19. The brokerage firm has ‘buy’ rating on the stock with target price of Rs 2,410. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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