Tata Consultancy Services has fallen as much as 1.85 per cent while rival Infosys gained 1.8 per cent in early trade today. TCS is trading at 17.3x of 1-yr forward earnings vs 16.4x of Infosys, according to Eikon data.
TCS Q3 dollar revenue has fallen 0.3 per cent to $4.15 billion quarter-on-quarter mainly due to U.S. holidays and heavy flooding in Chennai. Q3 represents sixth consecutive quarter of disappointing revenue growth versus consensus expectations. TCS is likely to underperform on revenue growth vs Infosys in FY16/17 after 5 years of outperformance, said Nomura.
Constant currency revenue growth for TCS was 12.5 per cent year-on-year in 9MF16 compared to 13 per cent at Infosys in H1F16. Growth rates seem to be converging which can alter multiples, said Morgan Stanley.
TCS is trading at 17.5 times FY17 P/E, a 10 per cent premium to Infosys, We see this gap bridging over the next twelve months as it suffers from deceleration, said ICICI Securities
Infosys will report its Q3 results later in the day.
Constant currency revenue growth for TCS was 12.5 per cent year-on-year in 9MF16 compared to 13 per cent at Infosys in H1F16. Growth rates seem to be converging which can alter multiples, said Morgan Stanley.
TCS is trading at 17.5 times FY17 P/E, a 10 per cent premium to Infosys, We see this gap bridging over the next twelve months as it suffers from deceleration, said ICICI Securities
Infosys will report its Q3 results later in the day.
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