
On March 19, shares of Tata Consultancy Services fell over 3% after 2.02 crore shares changed hands at an average price of Rs 4,043 per share.
According to market reports, this represents 0.6% of the equity. More astonishingly, market reports speculate that the seller behind this transaction of massive proportions is none other than Tata Sons.
Tata Sons offered to sell 2.34 crore shares in India’s largest IT service firm, and the floor price was revealed to be a 2.6% discount to the closing price of Rs 4,144.25.
At 10:44 am, TCS shares were trading 3.25% lower at ₹4,017.5. A day before, TCS shares closed 1.78% lower at Rs 4,219.25 and the company’s m-cap is close to Rs 15 lakh crore.
Promoters held 72.41% of the stake, Tata Sons had around 72.38% and Tata Investment Corporation held the remaining 0.03%. Despite the abrupt plunge in the equity’s price, Sharekhan has maintained a buy call with a target price of Rs 4,750. The firm is optimistic about TCS’s in-depth domain experience and unique geographic presence.
Sharekhan Research anticipates resilient revenue growth in the next few quarters following the ramp-up of its deal wins in FY25/26. The key drivers of the ranking are recovery across BFSI and other vital verticals and the ramp-up of large deal wins.
The brokerage also expects the company’s margins to improve, initially in FY25 and then over the next few years, with revenue growth and operational efficiency as the supporting factors. Overall, client ramp-ups such as JLR, Country Foods, New Warehouse, BSNL, and Aviva are expected to drive growth. TCS is well-positioned to benefit from having the brightest opportunities and largest won deals.