A day after IT services major Tata Consultancy Services released its October-December quarter earnings, brokerage firm HDFC Securities has recommended potential investors to 'add' its shares to the investment portfolio.
The TCS shares are currently trading at Rs 3,265, and the brokerage firm pegged a target price of Rs 3,560, which essentially means an upside potential of about 10 per cent.
"TCS delivered revenue beat and in-line operating performance in Q3FY23. Revenue growth of 2.9 per cent QoQ (1.2 per cent estimated) was driven by a disproportionate rise in Regional Market and Others segment, based on growth in product and Asia Pacific business," said the brokerage Institutional Equities - HDFC Securities in a report on Tuesday.
The IT services firm on Monday reported a 10.98 per cent surge in its consolidated net profit to Rs 10,883 crore for the quarter that ended December 2022 (Q3FY23). The company had posted a profit of Rs 9,806 crore in the year-ago period.
TCS reported a 19.1 per cent year-on-year growth in its revenue for the quarter that ended in December 2022. The software giant said net income grew 11 per cent to Rs 10,846 crore during the December quarter whereas its net margin was at 18.6 per cent.
Also, it announced an interim dividend of Rs 7 and a special dividend of Rs 67 per share for its investors.
A dividend is a reward that companies often provide to their shareholders, though not mandatory, from a portion of their earnings.
The third interim dividend and the special dividend shall be paid on February 3, 2023, to the company's shareholders, whose names appear on the Register of Members of the Company or in the Depositories' records as beneficial owners of the shares.
The record date fixed for the purpose is January 17, 2023. The record date is for the purpose of ascertaining the eligibility of shareholders for payment of the dividend.
( With inputs from ANI )
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