Religare downgrades TCS to 'hold'

Domestic brokerage Religare has downgraded TCS to hold. The company in a report on Thursday said.

"We downgrade TCS to 'HOLD' with a March-13 price target of Rs 1,325," said Manoj Singla, CFA, TCS. "While TCS delivered another healthy quarter (4% US$CC growth and 5% volume growth), we believe that heightened street expectations will be tough to beat in the current weak demand environment."

The brokerage's estimates factor in 14% US dollar revenue over FY12-14 and it does not see upsides unless the macro environment improves significantly. Even with a 20% P/E premium on Infosys, upsides are limited on TCS leading to our downgrade, said the report.

TCS posted a 37% jump in net profit and income during the June quarter from a year ago.