TCS share price touched 52-week high in the early trade on January 11 post Q3 numbers, crossed Rs 12 trillion m-cap. What should investors do now: buy, sell or hold?

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TCS share price touched 52-week high in the early trade on January 11 post Q3 numbers, crossed Rs 12 trillion m-cap. What should investors do now: buy, sell or hold?

Tata Consultancy Services (TCS) share price touched 52-week high of Rs 3,230, rising over 3 percent in the early trade on January 11 after the company posted its December quarter numbers. TCS became the first Indian information technology (IT) company and overall the second listed company to cross Rs 12 trillion market-capitalisation (market-cap), on Monday, after reporting a healthy set of numbers for the October-December 2020 quarter (Q3FY21).

The company’s Q3FY21 numbers were above analysts’ estimates on all fronts. The company said it could return to a double-digit growth trajectory next year. On the National Stock Exchange (NSE), the stock hit fresh all-time high of Rs 3,230, up 3.5 per cent.

The largest IT services exporter in India, reported consolidated revenue for the quarter increased 4.7 percent sequentially to Rs 42,015 crore and the year-on-year increase was 5.4 percent for the quarter. It reported a consolidated net profit of Rs 8,701 crore for the quarter ended December 2020, rising 7.2 percent sequentially, backed by strong demand-led revenue growth.

The September quarter net profit had a post-tax one-time impact of Rs 958 crore due to provision for ongoing litigation with EPIC.

TCS’ quarter on quarter (QoQ) growth in revenues was led by healthy demand in core transformation services and conversion from earlier deals. US dollar revenues grew 5.1 per cent QoQ to $5,702 million. On a constant currency basis, the revenue growth was 4.1 per cent QoQ and 0.4 per cent year-on-year (YoY). EBIT (earnings before interest and tax) margins expanded 42 basis points (bps) QoQ to 26.6 per cent. TCS has declared an interim dividend of Rs 6 per share.

Here is what the brokerages have to say about the stock and the company after the Q3 numbers:

Source: BSE, NSE, Business Standard, Moneycontrol

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