Hold TCS - Geojit BNP Paribas Financial Services

- TCS is rated to 'hold' with a target price of Rs.1240 over one year.

- The company reported in line numbers for 1QFY13.

- USD revenue grew 3% qoq, which looks creditable in the current environment. This is against Infosys's USD revenue decline.

- It seems that TCS continues to benefit from the order book built over the previous quarters and a service mix geared for an extremely value- conscious market.

- Management commentary was generally positive given eight large deal win in 1Q. However, it is worth noting that the bulk of the growth came from select areas - the UK, financial services and BPO indicating two extra months of revenue versus 4QFY12.

- Realisations fell 1% qoq for the second successive quarter.

- Hiring guidance remains unchanged at 50000 and it seems that there is a little upside to the FY13 USD revenue growth forecast of 12.5%.

Source : Equity Bulls

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