TCS shares surge on buyback announcement, trades near 52-week high

Shares of It consulting and software giant Tata Consultancy Services Ltd zoomed over 3 per cent to Rs 3979.90 per share in the early trade on the BSE on Monday.

Brokerage firm KR Choksey has suggested to accumulate this IT share, saying it sees a potential upside of 10.2% at CMP of Rs 3,861 per share. Source: PTI

Shares of It consulting and software giant Tata Consultancy Services Ltd zoomed over 3 per cent to Rs 3979.90 per share in the early trade on the BSE on Monday. Shares of this It consulting and software provider has touched 52-week high of 3,990 per share on the BSE on October 8, 2021. The surge in share price of TCS can be attributed to two reasons: One, board's decision to take call on buyback shares on January 12 and secondly, TCS has been selected for 2nd phase of Passport Seva programme by the Ministry of External Affairs (MEA).

At 11.20 am, TCS shares traded with gain of Rs 24.30 or 0.63% to Rs 3879.15 on the BSE.

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IT gaint TCS on Friday said that its board will consider a buyback proposal on January 12. "Pursuant to Regulation 29(1 )(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Board of Directors will consider a proposal for buyback of equity shares of the Company, at its meeting to be held on January 12, 2022." the company said in a regulatory filing.

TCS will also come out with Q3FY22 results on Wednesday, January 12.

Earlier, tech giant had also confirmed that said it has been selected by the Ministry of External Affairs (MEA) for the second phase of the Passport Seva Program. As per the company, In the next phase of the programme, TCS will refresh existing facilities and systems, and develop innovative solutions to enable the issuance of e-passports and further enhance the citizen experience, using technologies, such as biometrics, artificial intelligence, advanced data analytics, chatbots, auto-response, natural language processing, and the cloud, said a statement from the company.

Meanwhile, Brokerage firm KR Choksey has suggested to accumulate this IT share, saying it sees a potential upside of 10.2% at CMP of Rs 3,861 per share.

TCS key services include application development, product co-development and system implementation/system engineering. TCS has specialized expertise in insurance, banking, Retail & CPG, and manufacturing sectors.

"We are assigning a P/E multiple of 29x to the FY24 estimated EPS of Rs 145 to arrive at a target price of Rs 4,256 per share, an upside of 10.2% over the CMP, with an “ACCUMULATE” rating on the stock," it said.

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