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The stock of TCS corrected sharply by nearly 15 per cent over the past couple of weeks, largely on account of the across-the-board fall in broader markets.
But fundamentally, TCS continues to consistently deliver results that are ahead of market expectations.
During the September period, its revenues grew 3.2 per cent in dollar terms q-o-q. The operating margin sequentially expanded by over 140 basis points to 26.5 per cent. Growth was well-rounded across geographies and verticals. Large-sized client additions were healthy, and digital revenue growth was solid. TCS looks all set to record double-digit revenue growth in dollar terms for FY19.
Markets are willing to accord a substantial premium to the company: TCS’ price-earnings multiple — at 26 times trailing 12-months earnings — is higher than the 16-18 times that peers such as Infosys, Wipro and HCL Technologies trade at.
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