ADD on Tata Consultancy Services - Strong progression - HDFC Securities
Posted On: 2021-04-13 09:05:23 (Time Zone: Arizona, USA)
Mr. Apurva Prasad, Institutional Research Analyst, HDFC Securities and Mr. Amit Chandra, Institutional Research Analyst, HDFC Securities
We maintain ADD on TCS, following a strong 4Q performance, robust growth indicators, and positive commentary (3-5 years structural growth drivers). The near-term growth visibility is high, supported by strong bookings (4Q book-to-bill higher than FY20 and 9MFY21 book-to-bill) and higher mix of smaller deals. We believe TCS calibrated focus on upstream/consulting business will increase its addressable market. The industry-leading execution continues with markers such as decline in attrition (though uptick in sub-con), reversion to normal wage cycle, and investments in up-skilling (enabling partnerships, solution expertise). TCS commentary on supply-side (no concerns) was a contrast to Accenture s commentary (rev