Fri Oct 11 09:03:42 UTC 2024: ## TCS Shares Under Scrutiny After Mixed Q2 Results

**Mumbai, India** – Tata Consultancy Services (TCS), India’s largest IT services company, reported a tepid 5% year-on-year rise in net profit for the July-September quarter, sending its shares under the radar of investors. While the company saw an 8% increase in revenue, its operating margin contracted slightly.

Analysts are divided on the future of TCS shares. Despite missing market estimates, the company’s strong employee headcount growth and the anticipated positive impact of the US Fed’s easing monetary policy are encouraging signs. Sharekhan’s Sanjeev Hota maintains a “BUY” rating, predicting a short-term target of ₹4,500 per share, citing the growth recovery narrative for the IT sector.

However, the company’s profit decline of 1.1% quarter-on-quarter and the lower-than-expected total contract value (TCV) raised concerns. Choice Broking’s Sumeet Bagadia advises existing shareholders to maintain a stop loss at ₹4,100 and consider adding more shares for a near-term target of ₹4,400 to ₹4,500. New investors can also buy TCS shares with a buy-on-dips strategy, but must maintain a stop loss at ₹4,100.

Despite the mixed results, TCS remains optimistic about future growth, driven by sectors like cybersecurity, AI, cloud, and TCS Interactive.

**Disclaimer:** This news article is based on information from the provided text. Readers are advised to consult with certified financial experts before making any investment decisions.

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