TCS stocks falls 2% after 2.2 crore shares change hands

Shares of Tata Consultancy Services (TCS) fell over 2 percent on March 19 as 2.02 crore shares or 0.6 percent equity changed hands at an average price of Rs 4,043 per share.

The seller is likely Tata Sons which had reportedly offered to sell 2.34 crore shares in India’s biggest IT service firm.

The floor price represents a 2.6 percent discount to the closing price of Rs 4,144.25. Data showed that 2.02 crore TCS shares were traded in five bunchs.

At 9:18 am, TCS shares were trading nearly 3 percent lower at Rs 4,030.65 on the National Stock Exchange. In the previous session, TCS shares closed 1.78 per cent lower at Rs 4,219.25 on the  (NSE).

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At a market capitalisation of Rs 15 lakh crore, TCS is India’s second most-valued listed company. Promoters held a 72.41 percent stake as of December 31, 2023. Of this, Tata Sons held 72.38 percent stake, while the rest is held by Tata Investment Corporation.

Sharekhan has a “buy” call on the stock with a target price of Rs 4,750. The bullish stance is on account of TCS’ strong domain expertise, and geographical presence.

TCS’ ability to cross-sell makes it well-placed to grab opportunities across cost optimisation, digital transformation, and newer technology services, the brokerage said.

Analysts at Sharekhan expect TCS’s resilient revenue growth over the last several quarters to pick up, given the ramp-up of large deal wins over FY25/26 in addition to demand recovery across key verticals, including BFSI, led by mitigating headwinds in CY24 and growing opportunities across newer technology services.

Also Read | Tata Sons to sell 0.65% stake in TCS for $1.1 billion

The ramp-up of JLR, Nest, BSNL and Aviva deals are likely to fuel revenue growth in the medium to long term. Margin improvement is expected to steadily continue in FY25, aided by revenue growth, further moderation in LTM attrition, subcon cost optimization, and improving utilisation, it said.

“TCS’s strong domain expertise, geographical presence, and ability to cross-sell make it well placed to tap into significant opportunities for growth in the tech sector owing to demand recovery along with cost takeouts as well as digital-transformation programs and vendor consolidation in addition to the demand for newer technology services,” the brokerage added.

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