MUMBAI: Tata Consultancy Services (TCSNSE 1.90 %) shares are expected to open strong on Monday on betterthan-expected fourth quarter earnings. Rival InfosysNSE -2.77 %, which guided for lower profits in FY20, could drop, mirroring the 4 per cent fall in its American Depository Receipts (ADRs) on Friday.
Both companies announced their results after trading hours on Friday. Most brokerages cut their target prices on Infosys by as much as 17 per cent, while some downgraded it. Analysts mos ..
“Infosys will correct at opening and TCS may open positive,” said Sanjiv Bhasin, executive VP-markets and corporate affairs at IIFL. “But the gains (for TCS) are likely to get sold into. Both the stocks are fully priced in at the current levels. The rupee is now a headwind and Europe business is looking weak,” he said.
Infosys forecast lower-than-expected growth at 7.5-9.5 per cent for FY20 and slashed margin expectations to 21-23 per cent. Its fourth-quarter profits increased 10.4 per cent to Rs 4,074 crore and revenue by 19.1 per cent to Rs 21,539 crore.
“There may be a mild disappointment in case of Infosys results because of the guidance cut,” said Deepak Jasani, head of research at HDFC Securities. “TCS has beaten expectations, but even here we may witness a sell on news scenario as well," said J ..
BROKERAGES ON INFOSYS
Centrum has downgraded the stock to ‘add’ from ‘buy’ and cut target price by 3.8 per cent to Rs 775. Dolat Capital cut rating to ‘sell’ from ‘buy’ and reduced target price by 16.7 per cent to Rs 700. HDFC Securities downgraded the stock to ‘neutral’ from a ‘buy’ and lowered target price by 6 per cent to Rs 755.
“Results disappointed on margins and the outlook guidance was weaker on both growth/margins. We expect the stock to react negatively to ..
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