The analysts have maintained their bullish view on IT giants Tata Consultancy Services TCS Infosys and Wipro, which posted their financial results for the quarter ended December 2021.
TCS reported 12.27 per cent year-on-year YoY and 1.51 per cent quarter-on-quarter QoQ growth in the consolidated net profit at Rs 9,769 crore on Wednesday. Infosys reported an 11.8 per cent YoY and 7.1 per cent QoQ rise in its consolidated net profit at Rs 5,809 crore.
The price target of Emkay Global Financial Services and Motilal Oswal Financial Services maintained Buy on TCS with a price target of Rs 4,150 and Rs 4250, indicating an upside of up to 10 per cent from the previous close of Rs 3,857. Emkay Global said that the company maintains the Buy on TCS, considering steady deal wins and consistent execution.
TCS also recommended a buyback of shares to the tune of Rs 18,000 crore at Rs 4,500 per share. The dividend was made by the board of directors of Rs 7 per equity share.
Emkay Global Financial Services is positive on Infosys with a price target of Rs 2,160. The company's shares were 0.39 per cent higher at Rs 1,885 in the morning trade on January 13. The benchmark BSE Sensex was close to 61,127 on the other hand. The brokerage maintained a Buy on Infosys position on the back of strong earnings momentum and a robust demand environment.
Infosys also revised its revenue guidance upward for FY 22 to 19.5 -- 20 per cent. The IT major said that the growth remained broad-based and the deal momentum was robust with digital transformation rapidly scaling across verticals and regions.
Motilal Oswal Financial sees a 20 per cent increase in Infosys' Q 3 results. We have slightly upped our FY 23 -- 24 EEPS estimate by 3 -- 4 per cent on a stronger than expected performance in Q 2 FY 22. The Motilal Oswal Financial Services also set a target price of Rs 2,310 for Infosys, as a key beneficiary of the acceleration in IT spending, as well as its capabilities around cloud and digital transformation, said Motilal Oswal Financial Services.
According to IDBI Capital, the recent run up in price factors in most of the positives is a result of the recent run up in price factors. It downgraded the stock from Buy to Hold with a price target of 780. The Shares of Wipro traded 5.63 per cent less than Rs 652 at around 11.20 am IST. Wipro said its standalone net profit fell by 8.67 per cent to Rs 2,419. In Q 3 of FY 22, there were 8 crore from Rs 2649.7 crore in the corresponding quarter last year. The net profit was almost flat, up 0.03 per cent YoY at Rs 2,969 crore.
Motilal Oswal Financial Services has a Neutral view on Wipro with a price target of Rs 720. We reduced our FY 22 24 EEPS estimate by 1 per cent to account for the growth front. We believe the current valuation is fair and we maintain our Neutral stance. Revenue went up 22.9% to Rs 5,809 cr, a 8% YoY to Rs 5,809 cr.