Strong Q4 Performance Propels TCS Shares: Is it a Buy on April 15th?
Tata Consultancy Services (TCS) recently unveiled its Q4FY24 results, showcasing a robust performance that surpassed market expectations. With a consolidated net profit of ₹12,434 crore, they recorded a notable 9 percent increase compared to the previous year. Similarly, its revenue from operations experienced a 3.5 percent year-on-year growth, reaching ₹61,237 crore.
The positive results prompted the company’s chief executive to express optimism about even stronger numbers in the upcoming fiscal year.
The notable growth in TCS’ performance was attributed to several factors, including significant expansions in its domestic and UK operations. Additionally, the company achieved a milestone by closing record deals totaling over $13 billion during the quarter. Analysts and experts anticipate a favorable market response to these results, with expectations of an increase in TCS share price on Monday. However, they caution that the share price might encounter resistance around the ₹4,250 mark. Should the share price surpass this level, analysts project further potential gains, with targets set at ₹4,530 and ₹4,720 in the medium term.
Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, highlighted the strength of TCS’ financials and its record deal closures, reflecting the company’s robust performance and strategic positioning in the market.
Shiju Koothupalakkal, a Technical Research Analyst at Prabhudas Lilladher, emphasized key support and resistance levels for TCS shares. He noted that while TCS shares have performed well in recent months, hovering around the significant 50EMA level of ₹3,975, they face near-term support around the 100 period MA level of ₹3,875. Koothupalakkal also highlighted the importance of maintaining crucial support near the 200 period MA of ₹3,650, below which the trend could weaken. On the upside, breaching the resistance zone of ₹4,250 would indicate a breakout, potentially paving the way for further gains, with targets set at ₹4,530 and ₹4,720 for the medium term.
Overall, TCS’ strong Q4FY24 results have positioned the company favorably in the market, with analysts and experts expressing confidence in its growth prospects and potential for further share price appreciation.
