Buy Tata Consultancy Services, target price Rs 4150: Emkay Global

Emkay Global has buy call on Tata Consultancy Services with a target price of Rs 4150. The current market price of Tata Consultancy Services is Rs 3875. Time period given by analyst is year when Tata Consultancy Services price can reach defined target.

Tata Consultancy Services Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1432550.12 Crore) operating in IT Software sector.

Tata Consultancy Services Ltd. key Products/Revenue Segments include Consultancy Income and Sale of Equipment & Software Licences for the year ending 31-Mar-2021.



Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 47978.00 Crore, up 4.00 % from last quarter Total Income of Rs 46132.00 Crore and up 16.88 % from last year same quarter Total Income of Rs 41049.00 Crore. Company reported net profit after tax of Rs 9653.00 Crore in latest quarter.

Investment Rationale
The brokerage tweaks FY22/23/24 EPS estimates by -1.5%/0.5%/0.2% after factoring in the Q3 performance and buyback. It maintains Buy with a TP of Rs4,150 (Rs4,100 earlier) at 30x Dec’23E EPS, considering steady deal wins and consistent execution.

Promoter/FII Holdings
Promoters held 72.19 per cent stake in the company as of 31-Dec-2021, while FIIs owned 14.98 per cent, DIIs 7.93 per cent.