Though TCS's net income for the quarter was down by 3.3% QoQ to Rs5,708.9 crore, the company has delivered a decent revenue growth of 3.5% QoQ in a seasonally strong quarter of Q1FY2016, led by a 4.8% volume growth and a 1.3% drop in realization.
The shortfall in revenue performance was attributed to softness in Japan, Latin America and Diligenta.
At the current market price of Rs2,467, the stock trades at 20.5x and 18x its FY2016E and FY2017E earnings.
Taking positive stand on TCS, given its strong positioning, scale advantage and headstart in the digital technology space, accumulate the stock at current price for a target of Rs2890.
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