major IT stock to open in the green tomorrow thanks to robust profits

Shares of Tata Consultancy Services (TCS) are expected to remain in focus tomorrow, April 15, after reporting its fourth quarter results on Friday. The IT major released its financial results for the quarter ending March 31, 2024, beating market estimates.

Since the TCS results were announced after the close of the Indian Stock Exchange on Friday, it is expected that the TCS stock price will respond to these upbeat Q4 results next Monday.

Also read: TCS share price: Q4 2024 results exceed market estimates. Is this a stock to buy on Monday April 15?

“Investors are now looking towards Infosys’ upcoming results on April 18 to gauge the recovery status of the IT sector. Technically, TCS stock is trading between 3900 and 4025, and a breakout above 4025 could take the stock towards 4200 and 4250. Strong support level is seen at 3900 after positive results ”, said Prashanth Tapse, Senior Vice President (Research), Mehta. Actions Ltd.

The company published a consolidated net profit of ₹12,434 crore for the fourth quarter of the financial year 2023-24, an increase of 9% over the ₹11,392 crores declared during the corresponding period of the previous financial year. Its operational revenue increased by 3.5 percent year-on-year. ₹61 237 millions.

“TCS reported fourth quarter results that exceeded market expectations, highlighting a strong order inflow. Operating profit (EBIT) growth slightly exceeded forecasts, but revenue growth was flat compared to the previous quarter. Despite concerns over a challenging environment, TCS outperformed its IT sector peers following Accenture’s downward forecast revision. Although there were weaknesses in revenues from the BFSI segment and the North America region, TCS’s overall performance was in line with expectations, especially with a record order book for the fourth quarter of the financial year. 24,” Tapse added.

Also read: TCS Q4 result: turnover up 4%, profit up 9% year-on-year; Top 5 March Quarter Dashboard Highlights

Analysts expect a slight rise in the main IT stocks. “The quarter completes a year for new management and the continuity and benefits that flow from this will now be evident in the next quarter, extending the operational improvements we have already seen. Since IT spending budgets were finalized in late March, we expect an uptick in contract acquisitions and project ramp-ups from Q1FY25, reinforcing TCS’s optimistic outlook said Dhruv Mudaraddi, research analyst at StoxBox.

They claimed that the TCS stock price was facing a barrier to ₹4,250 per share. Once this threshold is exceeded, the TCS share price is expected to reach levels of ₹4 530 et ₹4,720 per share in the medium term.