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Business News/ Markets / Stock Markets/  TCS Q4 Results: IT major stock to open in green today over robust earnings
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TCS Q4 Results: IT major stock to open in green today over robust earnings

TCS share price encounters a barrier at ₹4,250 per share. Upon surpassing this threshold, it is anticipated that the TCS share price will ascend to levels of ₹4,530 and ₹4,720 per share in the medium term, analysts said.

TCS share price will be in focus after TCS Q4 results exceed market expectations, with a focus on strong order inflow. (Image: Reuters)Premium
TCS share price will be in focus after TCS Q4 results exceed market expectations, with a focus on strong order inflow. (Image: Reuters)

TCS share price is all set to remain in focus today, April 15 after posting its fourth quarter results on Friday. The IT major Tata Consultancy Services (TCS) reported its financial results for the quarter ending on March 31, 2024, beating market estimates.

Since the TCS Q4 results were announced after the Indian stock market closed on Friday, it is anticipated that the TCS share price will respond to these upbeat Q4 results on Monday.

Read here: TCS share price: Q4 results 2024 beat market estimates. Is this a share to buy on Monday — April 15?

“Technically, TCS stock price is trading between 3,900 and 4,025, and a breakout above 4,025 could drive the stock towards 4,200 and 4,250. A strong support level is seen at 3,900 post-positive results," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

The company posted a consolidated net profit of 12,434 crore for the fourth quarter of FY24, marking a 9% increase from the 11,392 crore reported in the corresponding period of the previous financial year. Its revenue from operations rose by 3.5% year-on-year (YoY) to 61,237 crore.

TCS reported Q4 results that exceeded market expectations, with a focus on strong order inflow. Operating profit (EBIT) growth slightly surpassed forecasts, but revenue growth remained flat compared to the previous quarter. Despite concerns about a challenging environment, TCS outperformed IT peers following Accenture's guidance downgrade. While there were weaknesses in revenue from the BFSI segment and North America region, TCS' overall performance aligned with expectations, especially with a record-high order book for Q4FY24," Tapse added.

Also read: TCS Q4 result: Revenue up 4%, profit rises 9% YoY; top 5 highlights from March quarter scorecard

Analysts are expecting an uptick in the IT major stock. 

“The quarter completes one year for the new management and the continuity and benefits from that are now bound to show in the coming quarter extending the operational improvements that we have already seen. Since the IT spending budgets have been finalized by the end of March, we expect an uptick in deal acquisitions and project ramp-ups commencing in Q1FY25, thus reinforcing TCS's optimistic outlook," said Dhruv Mudaraddi, Research Analyst at StoxBox.

Analysts asserted that the TCS share price encounters a barrier at 4,250 per share. Upon surpassing this threshold, it is anticipated that the TCS share price will ascend to levels of 4,530 and 4,720 per share in the medium term.

Meanwhile, investors will now look for Infosys Q4 results scheduled to be announced on April 18 to gauge the IT sector's recovery status.

On Friday, TCS share price ended 0.45% higher at 4,000.30 apiece on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 14 Apr 2024, 01:51 PM IST
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