TCS Q4 Results: Stock Set to Open in Green Tomorrow on Robust Earnings
TCS's Q4 results beat estimates with 9% profit rise, stock in focus for potential breakout; analysts optimistic about operational improvements.
The shares of Tata Consultancy Services (TCS) are expected to be in the spotlight on April 15 following the release of its fourth-quarter results on Friday. The IT giant exceeded market expectations, reporting a consolidated net profit of ₹12,434 crore for the quarter ending March 31, 2024, a 9% increase from the previous year. Its revenue from operations also rose by 3.5% year-on-year to ₹61,237 crore. Analysts are optimistic about TCS's performance, particularly highlighting the strong order inflow. They note that while operating profit growth slightly surpassed forecasts, revenue growth remained flat compared to the previous quarter. Despite concerns about a challenging environment, TCS outperformed its IT peers following Accenture's guidance downgrade.
The company's performance, including a record-high order book for Q4FY24, aligned with expectations. Looking ahead, investors are turning their attention to Infosys' upcoming results on April 18 to gauge the IT sector's recovery status. Technically, TCS stock is currently trading between 3900 and 4025, with a breakout above 4025 potentially driving the stock towards 4200 and 4250. A strong support level is seen at 3900 post-positive results, according to Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Analysts expect an uptick in the IT major's stock, citing the completion of one year for the new management and the expected benefits from operational improvements. With IT spending budgets finalized by the end of March, analysts anticipate an increase in deal acquisitions and project ramp-ups commencing in Q1FY25, reinforcing TCS's optimistic outlook. They suggest that the TCS share price may encounter a barrier at ₹4,250 per share, but upon surpassing this threshold, it could ascend to levels of ₹4,530 and ₹4,720 per share in the medium term.
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