Preview: India's TCS shares little changed ahead of Q3 results

L&T Technology Services

11/01/2024 04:34

** Shares of India's top IT services firm Tata Consultancy
Services  TCS.NS  trade 0.5% higher ahead of Q3 results
    ** Net profit expected to rise 6.3% YOY, rev to grow 3.3%
YOY, per LSEG, vs ~9% rise in Q2 net profit and ~8% growth in
rev 
    ** Lack of mega-deals during Dec qtr a concern and key focus
point for investors going into March-qtr - Kotak analysts
    ** Equirus Securities expects gradual recovery in
discretionary spending in medium term; expects ramp-up in
earlier won large cost take out deals from Q4
    ** Investors to watch for comments on demand environment,
margin guidance, hiring plans and momentum in deal bookings -
Centrum
    ** Analysts' avg rating on TCS, peer Wipro  WIPR.NS  at
"hold" - LSEG
    ** Infosys  INFY.NS  only "buy"-rated stock and L&T Tech
 LTEH.NS  only "sell"-rated stock on 10-member IT index
 .NIFTYIT  - LSEG
    ** INFY also set to report today, down 1.2%
    ** Since reporting Q2 results, TCS up ~3%, while Infosys
gained 0.4%; Nifty IT index  .NIFTYIT  up nearly 7%
    

 (Reporting by Kashish Tandon in Bengaluru)
 ((kashish.tandon@thomsonreuters.com))