TCS shares saw a 1.35 percent increase on Monday, reaching a 52-week high of Rs 4,020 a share, and valuing the company at more than Rs 14.70 lakh crore.
In short
- On Monday, shares of Tata Consultancy Services reached a fresh 52-week high.
- During the day, the shares of the IT major crossed the Rs 4,000 mark for the first time.
- The member of the Tata Group has signed a new agreement with Europ Assistance.
After the business signed a new agreement in Paris to use artificial intelligence and machine learning to revamp Europ Assistance’s IT operating model, shares of Tata Consultancy Services Ltd (TCS) continued to rise, reaching a new 52-week high on Monday. During the meeting, the company provided information regarding the same through an exchange filing.
According to the company’s filing, TCS has been chosen as a strategic partner by Europ Assistance to assist in reimagining its global IT operating model for improved resilience, scalability, and user experience. TCS will step up its delivery centers in Europe and across geographies to provide end-to-end enterprise IT application services to Europ Assistance, it stated.
TCS’s shares saw a 1.35 percent increase on Monday after the announcement, reaching a new 52-week high of Rs 4,020 apiece and commanding a total market valuation of more than Rs 14.70 lakh crore. The IT major crossed the Rs 4,000 threshold for the first time after closing at Rs 3966.35 on Friday during the previous trading session. Leading international provider of travel insurance and support, Europ Assistance serves about 300 million clients in more than 200 nations and territories with services including travel, mobility, home and family, health, and concierge.
TCS shares reach Rs 4,000, reaching a new 52-week high; Here’s the reason.
Through the new agreement, Tata Consultancy Services will use its delivery centers in Europe and throughout all of the regions in which Europ Assistance works to offer end-to-end enterprise IT application services. It also said that Europ Assistance’s IT operations will be transformed by the deployment of TCS’s AI platform, “ignio AIOps,” which will improve reliability, scalability, and agility. Following the Q3 earnings, brokerage companies had a generally bullish outlook on the stock. TCS released Q3FY24 earnings that were better than anticipated. Religare Broking stated, “We think that macro situations and client spending on discretionary would take more than 1-2 quarters of recovery.”
However, from a long-term perspective, we remain bullish on TCS because of its strong product portfolio, healthy order book, investment in technology, and focus on continuous margin improvement, making it one of the sector’s top picks, it said, maintaining a ‘buy’ rating on the stock with a revised target price of Rs 4,359. Deal intake decreased slightly sequentially, but remained solid with a TCV of US $8.1 billion; book-to-bill was 1.1 times. Bonanza Portfolio said that deal wins were diverse and dominated by cost optimization projects. “We maintain Hold on TCS and increase our price target to Rs 4,000,” according to the statement.
