TCS shares today hit an all-time high on record quarterly net profit. The IT bellwether stock jumped as much as 6.3 per cent to a record high of Rs 1,995.
After opening the session at Rs 1,877, the stock touched intraday high of Rs 1,995 and a low of Rs 1,894 on the BSE. On the NSE, the stock touched the day's high of Rs 1,998 and a low of Rs 1,894.15. About 2,29,03,802 shares were traded on the NSE.
TCS ended the session up by 5.47 per cent at Rs 1,979.60. On the NSE, the stock ended higher by 5.06 per cent at Rs 1,970.
Tata Consultancy Services had on Tuesday posted a 23.7 per cent increase in consolidated net profit for the first quarter at Rs 7,362 crore, buoyed by overall growth and a revival in the BFSI segment. The company was also helped by a rise in operating income and other income.
TCS had posted a net profit of Rs 5,950 crore in the year-ago period.
According to Nomura analysts, revenue and margins were above estimate, with recovery in BFSI being a key positive. The brokerage says valuations were expensive at about 23x FY20 EPS. It has retained the stock rating as “reduce” and a price target of Rs 1,440.
Jefferies has raised y-o-y constant currency growth rates to 10-11.5 per cent over FY 19-21 vs 8.5-10 per cent earlier and raised the margin estimates to 9-13 per cent for FY 19-21.
It has upgraded the stock to “buy” from “hold” noting best growth prospects amongst Tier-1 IT firms, and raised the price target to Rs 2,140 from Rs 1,600.
TCS stock had gone up 38.8 per cent this year, as of last close. Over 5.2 million shares changed hands compared with 30-day average of 3.6 million shares.
(With inputs from Reuters)
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