IIFL Institutional Equities, a part of the IIFL Group, one of the leading players in the Indian financial services space, recommends “Reduce” TCS.
According to IIFL Institutional Equities report, our channel checks and commentary from other IT vendors during last week indicates a worse-than-expected environment for BFSI. TCS has the highest exposure from BFSI (43% of its revenues) among Indian IT vendors.
While we expect TCS to continue to witness the fastest growth, in a lacklustre demand environment, we see the gap in its growth rates versus other top vendors reducing in FY14/15, IIFL report stated.
Valuations are still at a high premium (20-40%) to other vendors. We expect them to moderate and see the stock price languishing. Downgrade to REDUCE, the brokerage added.
The report was published by IIFL’s Institutional Equities Research desk.
India Infoline Research Team / 15:28, Mar 13, 2015
Markets are now reinforcing the perception of an early interest rate hike by US Federal Reserve, with consensus calling for the hike taking place in June, when compared with the prior expectations of a hike in September.