Stocks to watch today: TCS reported an 8 per cent rise in consolidated net profit to Rs 10,431 crore in Q2FY23; AU SFB re-appointed R V Verma as its non-executive chairman.
Net profit has crossed the Rs 10,000-crore mark for the first time
Analysts expect TCS to post a sequential revenue growth of 3-4.6 per cent in constant currency terms, while its net profit may rise in the range of 6-10.7 per cent from the last quarter
On Wednesday, shares of TCS, Infosys, Coforge, Tech Mahindra, Larsen & Toubro Infotech, L&T Technology Services and Mindtree were down in the range of 3 per cent to 5 per cent
Earlier in May, analysts at JP Morgan had downgraded the Indian IT sector citing growth concerns. Rising margin headwind in the near-term, JP Morgan had said then, was one of the key concerns.
The company has indicated that the near-term demand outlook remains strong, but senior-level client executives have started discussing a potential recession, said Nomura.
TCS's demand commentary could be strong even as margin may be hit due to wage hikes, according to Motilal Oswal
Stocks to watch today: IT behemoth Tata Consultancy Services (TCS) is slated to report June quarter 2022 numbers (Q1FY23); Dr Reddy's received two observations from USFDA for its Andhra plant
Analysts expect EBIT margin to decline sequentially due to higher retention costs, wage revision, and increased travel costs. They peg margins in the range of 100 to 150 basis points (bps).
In the last few weeks alone, analysts at JP Morgan, Kotak Institutional Equities and Nomura had sounded caution on the IT sector, suggesting that the heydays may be over, at least for now
The demand outlook continues to be strong as clients continue to spend on cloud transformation programs.
The stock needs to create a strong base and momentum in the range of Rs 4,000 to Rs 3,800 levels, which the stock has been unable to conquer with ease.
Analysts say the company's margins are likely to be flat to slightly negative on QoQ basis due to supply side pressures and high employee costs.
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TCS on January 12, 2022 had approved to buyback up to 40 million equity shares of face value of Rs 1 each at Rs 4,500 per equity share for an aggregate amount of upto Rs 18,000 crore.
The NSE IT index has been moving in a tight range, a breakout in either direcion can trigger a 2,000 points movement.
BoI, Devyani Intl, Eveready, FSL, Mahindra Life, Paytm, REC, Siemens, Sintex, SPARC, Tata Steel, Thermax and Vijaya Diagnostics are some of the prominent companies to announce results today.
The nervousness in the IT stocks, analysts believe, is on account of rising employee costs at a time the business growth has been modest year-on-year in the December 2021 quarter (Q3FY22)
Infosys continues to defend the support from past four months; TCS shares have three supportive technical parameters that attract buying and accumulation.
TCS board has recommended a buyback of shares to the tune of Rs 18,000 cr at Rs 4,500 per share