The share price of the leading software exporter Tata Consultancy Service (TCS) plunged nearly 7 per cent today morning after the IT company reported its September quarter results.
Revenue for TCS grew 2.9% to $6.3 billion in the September quarter, when compared to the preceding three months. That was less than 3.8%, which was the consensus estimate on the street. Even the net margin at 25.6% was less than what the market had hoped for, reported Moneycontrol.
The IT major’ share price hit an intra-day low at Rs 3,660 per share, 6.9 per cent and it was the worst-performing stock on S&P BSE, while the benchmark index was nearing all-time highs.
Here is what brokerages firms are saying:
Jefferie: The research house maintained a hold rating with a target at Rs 3,950 per share as lack of positive surprises in the Q2 results offers limited scope for re-rating.
Macquarie: Macquarie has kept outperform call with a target at Rs 4,530 per share after the results marginally missed estimates due to a lower margin on supply-side issues.
Kotak Institutional Equities: Kotak Institutional Equities has maintained add rating on the stock with a target at Rs 4,100 per share after the company’s revenue missed estimates due to a surprising moderation in growth in continental Europe.
CLSA: The brokerage has maintained outperform rating with a target at Rs 4,050 per share after Q2 was a tad below estimates on both revenue growth and margins.
