
TCS buyback: IT major trades ex-date; stock down 1%
TCS shares declined 1.2% to hit a low of ₹3,468 as the stock turned ex-date for share buyback today.
TCS shares declined 1.2% to hit a low of ₹3,468 as the stock turned ex-date for share buyback today.
TCS will acquire a total of 4,09,63,855 shares at a 13% premium over Wednesday's market closing price of ₹3,613
TCS is expected to post constant currency revenue growth of 1% with 20 bps cross currency headwinds translating into 0.8% QoQ dollar revenue growth.
While ICICI Securities retained its ‘Buy’ stance on TCS shares, Axis Securities and Jefferies assigned ‘Hold’; Nomura and Morgan Stanley gave ‘Reduce’ and ‘Equal Weight’ ratings, respectively.
In a clarification to exchanges, TCS said that no key managerial person of the company has been found to be involved in the alleged recruitment scam.
The total maximum estimated value of the contract will be 1.5 billion pound, if the deal extended to the entirety of its 18-year tenure, says TCS
Most analysts have kept ratings unchanged on TCS post Q4 results; the IT heavyweight has an average target of ₹3,694, an upside of 16% from the current market price.
Axis Securities expects TCS to report revenue growth of 2.5% QoQ, while its operating margins are likely to expand by 97 bps in Q4FY23.
Canada-based aviation firm Bombardier has selected TCS to accelerate its digital transformation and drive innovation.
Most of global brokerage houses have maintained cautious stances on TCS shares post its December quarter results.