TCS - Inline performance, full valuations limit upsides - Emkay

- Inline revenue performance with a 3.1% QoQ US$ revenue growth, margin performance decent (-60 bps QoQ to 28.4%) despite India business led growth(+19.4% QoQ)

- Commentary remains positive. Management indicates a healthy pipeline across geographies/verticals and expects to grow higher than industry and maintain EBIT margins at 27%

- Raise FY14/15E EPS by 5/4% to Rs 79.3/88.2 on currency resets and incorporation of Alti acquisition( annual rev of Euro 125 mn)

- While valuations remain full at 18.5/16.5x FY14/15E P/E, also worth noting that earnings expected to see a much modest 11.3% CAGR over FY13-15E V/s 28% CAGR over FY09-13

Source : Equity Bulls

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