Short Term Buy Call For TCS

Technical Analyst, Rahul Mohindar of Viratechindia is of the view that Tata Consultancy Services (TCS) investors can buy Tata Consultancy Services (TCS) stock to achieve a short term target that lies between Rs 1020-1030.

According to Mr. Mohidar, interested investors can purchase the stock on declines with a strict stop loss of Rs 925.

Shares of the company, on Tuesdaay (May 27), closed at Rs 966.60 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 410209. Current EPS and P/E stood at 46.07 and 21.36 respectively. The share price has seen a 52-week high of Rs 1254 and a low of Rs 730 on BSE.

Tata Consultancy Services (TCS), on May 26, announced a five year contract worth USD 100 million to deliver end-to-end global IT applications services to NXP Semiconductors B.V, a top 10 semiconductor company founded by Philips.

TCS will provide high end consulting services as well as application management, development and support services across NXP`s supply chain, operations.

The company also signed up an eight year end-to-end IT application services contract with Scottish Water, worth an estimated 60 million pound nearly Rs 4,770.74 million. The new contract, whilst delivering an extended level of service, will also save Scottish Water a minimum of 8 million pound in operation expenditure alone over the next 8 years, the company said.

Tata Consultancy Services (TCS) registered 19.31% increase in consolidated net profit at Rs 50,260 million for the fiscal 2008, over fiscal 2007. Consolidated total income for the year rose 23.45% to Rs 233,494.50 million compared with the prior year.  

The board of directors of the company recommended a final dividend of Rs 5 a share of Re 1 each of the company for approval by the shareholders of the company at the forthcoming annual general meeting of the company.

Other stocks from the same sector that looks good for short-term and long-term trading includes Satyam, Infosys, Wipro and HCL Tech.

Analyst Views: