Stock market today: After the announcement of the Q3 results of Tata Consultancy Services (TCS) on Thursday evening (after market close), the share price of TCS witnessed an upward swing in the morning session on Friday. The share price of TCS today opened up at ₹3,848 per one level on NSE and went on to touch an intraday high of ₹3.8694 mark within a few minutes of the stock market’s opening bell. While climbing to this intraday high, TCS stock registered an intraday gain of over 4 percent.
According to stock market experts, TCS share price is on the rise today as the Indian IT major reported better than expected Q3 2024 results on Thursday. TCS managed to post a profit despite a seasonally weak quarter buffeted by macroeconomic headwinds. However, they claimed that TCS Q3 2024 results are better than expected, but it is not enough for a re-rating of the stock.
Are TCS Q3 results enough for a fresh uptrend?
On how these TCS Q3 results will affect the TCS share price, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “TCS reported better than expected Q3 results. The company reported profit while the market was expecting muted numbers. The company’s margins and earnings have also improved as it has forex gains. But, the single quarter results will not be enough for the stock’s revaluation. So, one has to keep an eye on the company’s business in North America and the UK in the coming years. quarters.”
Share price target of TCS
Expecting further upside in the near term, Sumeet Bagadia, Executive Director at Choice Broking said, “TCS share price made a strong base at ₹3725 per levels. Those who have TCS shares in their portfolio are advised to hold the ticket by keeping the stop loss at ₹3725. TCS share price can go up to ₹4,000 per levels soon.”
Read also: Infosys shares rally more than 6% on better-than-expected Q3 results; Should you buy?
For a suggestion to fresh investors, Sumeet Bagadia said, “Fresh investors can maintain buy on dip strategy by keeping stop loss at. ₹3725 per share levels for short term target of ₹4,000 per levels.”
In Q3 2024 results, TCS’s revenue grew 4 percent year-on-year (YoY) while profit grew 2 percent YoY. The company’s operating margin improved by 50 bps to 25 percent during the quarter under review which, according to the company, excludes the one-time charge of $125 million to the settlement of a legal claim.
TCS reported a 4 percent YoY increase in its Q3 consolidated revenue from operations at ₹60,583 crores against ₹58,229 crore in the same quarter last year. Sequentially (quarter-on-quarter), the company’s revenue increased by 1.5 percent vs ₹59,692 crore in Q2FY24.
Disclaimer: The views and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.
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Published: 12 Jan 2024, 10:41 IST