After the Q2 results in 2024, is it still wise to purchase TCS shares?

After the Q2 results in 2024, is it still wise to purchase TCS shares?

Stocks to purchase now: Despite missing market forecasts in the July–September 2024 quarterly results, stock market analysts predict that TCS’s share price might reach ₹4,500 per share in the near future.

TCS share price: It is anticipated that Indian stock market investors would continue to overlook Tata Consultancy Services (TCS) shares following the release of the Q2 results 2024. The Indian IT giant revealed a meek 5% YoY increase in its net profit for the July–September (Q2) quarter on Thursday, continuing the cautious patterns observed in the previous several quarters. The company’s sales increased by a respectable 8%, but its operating margin shrank somewhat year over year.

Stock market analysts claim that even though the company’s July–September 2024 quarter employee headcount missed market predictions, it nevertheless recorded higher headcounts. They predicted a short-term objective of ₹4,500 per share for TCS shares and stated that Indian IT heavyweights, including TCS, will profit from the US Fed’s loosening of monetary policy. They tagged TCS shares as a “buy.”

TCS Q2 findings 2024 evaluation

“TCS reported weak set of numbers with a miss on both revenues and margins, though revenues miss was a tad below our estimates, margins performance surprised us negatively,” stated Sanjeev Hota, Head of Research, Sharekhan by BNP Paribas, after reviewing the Q2 results 2024 for TCS.

Furthermore, the 8-quarter average is around USD 9.6 billion, and TCV wins at USD 8.6 billion less than our projections. Positively, for the second consecutive quarter, the headcount of employees climbed by 0.9% QoQ; also, the BFSI vertical had 1.9% QoQ growth in USD terms, above the company average growth. The growth recovery story for the IT industry and TCS is still valid as we move into the second half of fiscal years FY25 and FY26 thanks to the FED easing cycle and steady macroeconomic data. On TCS, we are rated BUY.”

“TCS missed projections, reporting a 1.1% QoQ decline in net profit of ₹11,909 crore. Nonetheless, the company’s rupee revenue increased by 2.6% on a QoQ basis, from ₹62,613 crore to ₹64,259 crore. In the second quarter, the EBIT margin was recorded at 24.1%, a decrease from the previous quarter’s 24.7%. With a record date of October 18, 2024, TCS announced the declaration of a second interim dividend of ₹10 per share. In Q2 FY25, the order book total contract value (TCV) increased slightly from $8.3 billion in Q1 FY25 to $8.6 billion. In addition, the business said that it had postponed its interviews and press conference in the wake of Ratan Tata’s passing on Wednesday,” according to Master Capital Services.

Target price for TCS Share

Sumeet Bagadia, Executive Director at Choice Broking, said on the future prospects of TCS shares: “Shareholders of TCS can retain the stock, keeping a stop loss at ₹4100. One can add more for the near-term aim of ₹4400 to ₹4500 if the base holds true. In order to sustain a buy-on-dips strategy for the near-term target of ₹4400 to ₹4500, new investors can also purchase TCS shares. New investors, however, need to keep their stop loss at ₹4100.+

TCS Q2 outcomes in 2024

TCS revealed on Thursday that its net profit for the July–September (Q2) quarter increased by a meek 5% year over year (YoY), continuing the cautious patterns observed in the previous several quarters. The company’s sales increased by a respectable 8%. Meanwhile, as per the company’s exchange filing, its operating margin experienced a little year-over-year decline. The rise in the September quarter was led by cyber security, artificial intelligence, cloud computing, and TCS Interactive.

Disclaimer: The above article is for educational and news purposes, this is not a buying or selling recommendation. TraderPulse recommends that users to check with certified experts before making any investment decisions.