Maintain 'hold' rating on TCS - TP Rs.1600 - Geojit BNP Paribas Financial Services

- 4QFY13 result is largely in line with expectations.

- USD revenue growth at 3.1% qoq has been similar to HCL Tech's 3.2% and above Infosys's 1.4%. This point towards a modestly improving industry demand.

- The 26.5% EBIT margin was hurt by 100 bps from a US employee settlement and 60 bps by forex related loss. However, the impact of the above was partly offset by productivity gains.

- The company is confident on USD revenue growth in FY14. It is expected to improve over FY13 and exceed NASSCOM's 12-14% industry estimate.

- However, it seems that much of the positives have already factored in the stock price and very few triggers in the near term.

- Maintain hod rating with a target price of Rs.1600.

Source : Equity Bulls

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