Shares of Tata Consultancy Services hit over 4-month high even as the company’s net profit fell 2.1 per cent in the September quarter. The stock jumped as much as 2.4 per cent to Rs 2,608.95, its highest since June 7.

The IT bellwether’s scrip gained 2.23 per cent to Rs 2,605.60 on the BSE. On the NSE, shares of the company went up 2.38 per cent to Rs 2,608.95.

The company had posted 2.1 per cent fall in Q2 profit on Thursday but added that it expects an uptick in retail business segment in the coming quarters.

Margin recovery is the key positive, CLSA analysts say, raising their target price to Rs 2,970 from Rs 2,880. “We expect growth recovery in insurance and retail to precede a recovery in US banking,” CLSA analysts say, adding that growth recovery appears more likely from Q4.

Thirteen out of 48 analysts covering the stock have “buy" or higher ratings, 23 “hold” and 12 have “sell” or lower; and a median target price Rs 2,439, according to Thomson Reuters data.

The stock had gained about 8 per cent this year as of Thursday's close.

India’s largest software exporter TCS yesterday reported 2.1 per cent dip in net profit to Rs 6,446 crore for the September quarter on softness in banking and retail segments, but gave better guidance based on client optimism.

The Tata group company posted a net profit of Rs 6,586 crore in the year-ago period. Its revenues grew 4.3 per cent year-on-year and 3.2 per cent over the preceding June quarter to Rs 30,541 crore under the Ind AS accounting norms.

The company, which is the crown jewel of the $104-billion salt-to-software Tata Group, declared a dividend of Rs 7 per share and set October 26 as the record date.

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