Brokerage firm gave buy rating amid fall in TCS shares, target Rs 3,785

Highlights

Tata Consultancy Services (TCS) fell 4.64 per cent on the NSE.
The entire IT sector remained under pressure during today’s business session.
Brokerage firm ICICI Direct has given a buy advice on TCS shares.

New Delhi. There was a lot of volatility in the Indian stock market today. In the morning the gap opened openly in the afternoon the main index and the shares showed tremendous growth and by the end both the main indices closed in the red mark. Although this fall in the main indices is not big, but today there was a big fall in the Information Technology (IT) sector.

Nifty IT fell by 3.08 percent today. Tata Consultancy Services (TCS), the biggest share in this sector, fell 4.64 percent. This was followed by a decline of 4.07 percent in HCL Tech and 2.73 percent in Infosys. Many other stocks in this sector also declined.

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This decline in the stocks of IT sector is not from today, but continues for almost 6 months. TCS has fallen more than 22 percent from its high (Rs 4043). On Monday, July 11, 2022, this stock has closed at Rs 3113.80 on NSE. Today a huge volume was also seen in TCS. The average volume of TCS in the last 20 days is 2.44 million (excluding today) and today it has 6.97 million volumes.

Target Rs 3,785
Of course, the downward trend in TCS continues, but brokerage firm ICICI Direct has advised to buy this stock. This firm has written in its research note that Tata Consultancy Services (TCS) is India’s leading company providing IT services to Communications, Manufacturing, Retail and Hi-Tech, and BFSI. Its organic revenue growth continues to be good and the company has the best margins in the industry. While giving a buy rating to TCS, ICICI Direct has given a target of Rs 3,785 for it.

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Good and bad things about TCS stock
According to screener.in, the company is almost loan free. Its Return on Equity (ROE) is good. It has given an ROE of 39.99 per cent in 3 years, which makes this company great. The company also makes a dividend payout of 56.35 percent. Coming to the downside, the company is currently trading at 12.81 per cent higher than its book value and the company has not done very well in sales growth in the last 5 years. This growth is 10.20 percent.

(Disclaimer: The stocks mentioned here are based on the advice of brokerage houses. If you wish to invest in any of these, please consult a Certified Investment Advisor first. News18 will not be responsible for any profit or loss caused by you .)

Tags: Business news in hindi, Invest money, Money Making Tips, TCS

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