Tata Consultancy Services (TCS) experienced a decline of more than 3% on March 19, with shares falling to an intra-day low of Rs 4022. About 2.2 crore shares, representing 0.6% equity, were traded at an average price of Rs 4,043 per share during the session.
Report states that a multiple block deal at Rs 4035 has taken place, where the identity of the buyers remains undisclosed. Tata Sons, the promoter entity of TCS, had intended to divest a 0.64% equity stake in the technology giant through this block deal.
The likely seller is Tata Sons, which reportedly offered to sell 2.34 crore shares in India’s largest IT service firm.
As of 9:27 am, TCS shares were trading nearly 3% lower at Rs 4,032.50 on the National Stock Exchange (NSE). In the previous session, TCS shares closed 1.78% lower at Rs 4,219.25 on the NSE.
Tata Consultancy Services (TCS) holds the position of India’s second most-valued listed company with a market capitalization of Rs 15 lakh crore. As of December 31, 2023, promoters retained a 72.41% stake, with Tata Sons holding 72.38% and the remaining portion owned by Tata Investment Corporation.
Sharekhan on TCS
Sharekhan issued a “buy” recommendation for TCS, setting a target price of Rs 4,750. This positive outlook is based on TCS’s robust domain expertise and expansive geographical presence.
According to Sharekhan analysts, TCS’s adeptness in cross-selling positions it favorably to seize opportunities in cost optimization, digital transformation, and emerging technology services.
They anticipate TCS to sustain its resilient revenue growth, driven by the escalation of significant deal wins throughout FY25/26, alongside a rebound in demand across crucial sectors such as BFSI. This growth trajectory is expected to counteract challenges in CY24 while capitalizing on burgeoning prospects in newer technology services.
