TCS is one of the world’s leading information technology companies and is well poised to take advantage of the amazing business opportunity in outsourcing which is set to emerge as the leading companies of the world reorganize themselves after the financial crisis of 2008. It has around 90 clients the world over and has been showing good performance over the years.
“TCS will also benefit from the diversity of its business operations. It has reported better than expected volume and profit growth in the recent quarters. We recommend buying TCS as the stock trades around 20 times FY10E, which is a 15 – 20% discount to the valuation of Infosys,” says Kapur.
OUR RECOMMENDATION :
TCS has had a dream run in the last 2 months from a low of 450 it has scaled 680 a 52 week high recently. Avoid in the short term and buy below 600 for a target price of 900 in a years time frame.
Bought to you by
Equity Research Division
No.429 Mahavir Tuscan
Near Hoodi Circle, Whitefield