ET Now In a chat with ET Now, Bhavin Shah, CEO, Equirus Securities shares his views on TCS' earnings. Excerpts:
ET Now: The numbers are above our estimates on all counts. What do you say?
Bhavin Shah: Yes, these are superb results. The revenue growth has been clearly above our forecast by more than a per cent and it does seem that it is carried through the bottom line as well. So the first impression is that these are very good results.
ET Now: You said that these are superb set of numbers from TCS. Do you think that there will be a re-rating from your end as well? How much of an upside do you see from hereon?
Bhavin Shah: Our previous target price was Rs 2800 for September 15. Based on these results, those estimates will go up and so will the target price. Hence we can certainly see an upside in this stock.
ET Now: Do you think TCS will grow above the industry estimate of 13% to 15% with this kind of numbers being posted in Q1 itself?
Bhavin Shah: Well, they started with a bang and the first quarter is so strong. They also have the benefit of consolidating the Mitsubishi JV revenues in much of the latter part of this year. So all in all, they will grow way above the industry average and to say that they will grow industry average would be an understatement.
ET Now: The numbers are above our estimates on all counts. What do you say?
Bhavin Shah: Yes, these are superb results. The revenue growth has been clearly above our forecast by more than a per cent and it does seem that it is carried through the bottom line as well. So the first impression is that these are very good results.
ET Now: You said that these are superb set of numbers from TCS. Do you think that there will be a re-rating from your end as well? How much of an upside do you see from hereon?
Bhavin Shah: Our previous target price was Rs 2800 for September 15. Based on these results, those estimates will go up and so will the target price. Hence we can certainly see an upside in this stock.
ET Now: Do you think TCS will grow above the industry estimate of 13% to 15% with this kind of numbers being posted in Q1 itself?
Bhavin Shah: Well, they started with a bang and the first quarter is so strong. They also have the benefit of consolidating the Mitsubishi JV revenues in much of the latter part of this year. So all in all, they will grow way above the industry average and to say that they will grow industry average would be an understatement.
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