Cup and handle Pattern formed in TCS which can complete a potential gain of more than 20%.
TCS Share Price
In a market where IT stocks are experiencing a downturn, TCS emerges as a standout performer with its impressive quarterly results. The company reported remarkable figures, boasting a substantial Sales figure of Rs. 59,381 and a robust Net Profit of Rs. 11,120 for the June quarter of FY24. Additionally, technical chart enthusiasts are taking note of a promising development: the formation of a cup and handle pattern, hinting at potential future gains.
TCS Share Price Target
If bought at current price of Rs. 3380, TCS can be kept till a target of Rs. 4180 for a potential gain of 23% based on technical cup and handle pattern.
TCS has posted excellent Q1FY24bresults both on QoQ basis and YoY basis. It has shown a Sales Growth of 16% and Profit Growth of 13%. TCS Share is trading below its median PE which suggests it is undervalued.
Investment in a debt free company with 3 years ROE of 43% and dividend yield of 61% is a great opportunity for its investors.
The Next Step TCS
Some of the recent noteworthy developments in TCS’s business which further confirms the success of this pattern are:-
Strategic Investments in Cloud Computing and Artificial Intelligence (AI): TCS has made substantial investments in cutting-edge technologies like cloud computing and AI. As of July 2023, the company unveiled plans to train 25,000 engineers in Azure Open AI, an initiative by Microsoft that leverages AI for practical problem-solving. TCS is also harnessing AI to pioneer new products and services, including the TCS Pace AI platform, designed to assist businesses in automating tasks and enhancing decision-making processes.
Market Expansion Initiatives: TCS is actively expanding its footprint into emerging markets, with a particular focus on Africa and Latin America. In August 2023, TCS announced the establishment of a new delivery center in Ghana. Simultaneously, the company is reinforcing its presence in existing markets, such as the United States and Europe, to better serve a global clientele.
Commitment to Sustainability: TCS is firmly committed to sustainability, exemplified by its significant strides in this arena. In July 2023, TCS proudly announced its attainment of net-zero carbon emissions across its own operations. Beyond this, the company is working in collaboration with clients, particularly within the energy and utilities sector, to pioneer renewable energy projects, contributing to a greener future.
Dedication to Innovation: TCS places a strong emphasis on innovation as a cornerstone of its strategy for continued success. The company has adopted a three-horizon innovation approach, encompassing short-term, mid-term, and disruptive innovations. Furthermore, TCS is actively investing in research and development and maintains numerous partnerships with prestigious universities and research institutes to foster a culture of continuous innovation.
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