TCS, Infosys, Wipro: Which stock to buy post Q3 results? 

Analysts retained their bullish view on IT majors Tata Consultancy Services (TCS), Infosys and Wipro post their financial results for the quarter ended December 2021.

TCS on Wednesday reported 12.27 per cent year-on-year (YoY) and 1.51 per cent quarter-on-quarter (QoQ) growth in consolidated net profit at Rs 9,769 crore. On the other hand, Infosys reported an 11.8 per cent YoY and 7.1 per cent QoQ rise in its consolidated net profit at Rs 5,809 crore.

Brokerages Emkay Global Financial Services and Motilal Oswal Financial Services maintained Buy on TCS with a price target of Rs 4,150 and Rs 4250, respectively, indicating an upside of up to 10 per cent from the previous close of Rs 3,857.25. “We maintain Buy on TCS, considering steady deal wins and consistent execution,” Emkay Global said.

Meanwhile, TCS also recommended a buyback of shares to the tune of Rs 18,000 crore at Rs 4,500 per share. The board of directors also declared a dividend of Rs 7 per equity share.

Emkay Global Financial Services is also positive on Infosys with a price target of Rs 2,160. Shares of the company traded 0.39 per cent higher at Rs 1,885 in the morning trade on January 13. On the other hand, the benchmark BSE Sensex was almost flat at 61,127. The brokerage maintained ‘Buy’ on Infosys on the back of strong earnings momentum and a robust demand environment.

Infosys also revised its revenue guidance upward for FY22 to 19.5-20 per cent. The IT major said its growth remained broad-based and the deal momentum stood robust with digital transformation rapidly scaling across verticals and regions.

Motilal Oswal Financial sees over 20 per cent upside in Infosys post Q3 results. “We have marginally upped our FY23-24E EPS estimate by 3-4 per cent on stronger than expected performance in Q2FY22. We continue to view Infosys as a key beneficiary of acceleration in IT spending, given its capabilities around cloud and digital transformation,” said Motilal Oswal Financial Services, while setting a target price of Rs 2,310 for Infosys.

Sharing its view on Wipro, brokerage IDBI Capital said, "The recent run up in price factors in most of the positives." Hence, it downgraded the stock from Buy to Hold with a price target of Rs 780. Shares of Wipro traded 5.63 per cent lower at Rs 652 at around 11.20 am (IST). Wipro on Wednesday said its standalone net profit fell by 8.67 per cent to Rs 2,419.8 crore in Q3FY22 from Rs 2649.7 crore in the corresponding quarter last year. On the other hand, consolidated net profit stood almost flat (up 0.03 per cent YoY) at Rs 2,969 crore.

Motilal Oswal Financial Services has a Neutral view on Wipro with a price target of Rs 720. “We lower our FY22–24E EPS estimate by 1 per cent to factor in the miss on the growth front. We maintain our Neutral stance as we view the current valuation as fair.”

Also read: Infosys Q3 results: Net profit up 11.8% YoY to Rs 5,809 cr, revenue up 22.9%

Also read: TCS Q3 results: From share buyback to dividend, here are 10 key takeaways

Also read: TCS Q3 net profit rises 12% to Rs 9,769 cr; board approves buyback of Rs 18,000 cr

Also read: Wipro Q3 results: Net profit at Rs 2,969 cr, board approves interim dividend of Re 1