ADD this Tata Multibagger Group stock, stock may rise 16%: HDFC Securities

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Outlook and stock returns

The current market price of the share is Rs 3,120.40 each. The stock’s 52-week low is Rs 2,953 and the 52-week high is Rs 4,043, respectively. It gave a negative return of 8.27% in the last month and a negative 19.7% return over one year, respectively. While in the past 3 years it has given a positive return of 45.68%. Over the past 5 years, it has given a multibagger yield of 150.94%.

    Key points to remember

Key points to remember

Below are the main highlights of the conference:

  • The deal pipeline remains strong, but replenishing the pipeline beyond the second quarter will be critical.
  • The signatures of agreements have a good momentum in the second quarter.
  • Demand trends are more visible across geographies than verticals; Europe (both UK and Europe) looks more vulnerable in certain verticals compared to NorthAm.
  • Vertical manufacturing in Europe looks relatively vulnerable.
  • There is strong momentum in BFSI across major geographies.
  • The 25% EBITM exit target for T4FY23 remains intact.
  • Currently, the objective is not to rationalize subcontractors but in the medium term it is a margin lever for the company.
  • Normalizing travel and alleviating the supply shortage will reduce the impact of contractors.
View of HDFC titles

View of HDFC titles

TCS’ gold standard for execution/scale will be supported by a comprehensive service portfolio, including industry platforms, dominance in the BFSI vertical, and strong global prioritization with leading platforms. cloud shapes. “We have factored in USD revenue growth of +9.9%/10.1% and an EBIT margin of 24.2/24.9% each for FY23/24E. The valuation is 28.5 /25.1x (FY23/24E) 28x FY24E EPS with 11% EPS CAGR over FY22-24E (vs. 5-year average of 25x and 8% EPS CAGR), and is backed by an FCF yield/payout of 4 /3%; maintain ADD on TCS,” the brokerage said.

Disclaimer

Disclaimer

The security was selected in the brokerage report of HDFC Securities. Greynium Information Technologies, the author and the respective brokerage are not responsible for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.

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