Last updated: 15 Jul, 2020 | 12:15 pm
The ongoing pandemic has affected businesses across industries. Q1FY21 results were expected to be very weak, due to the lockdown imposed on March 24th. TCS believes that the effect has now bottomed out, and the company should now start tracing its path towards growth.
The Covid-19 pandemic has forced a tectonic shift in businesses processes to move towards greater digitization. In fact, TCS has said that many of its customers have shifted their focus on front-end transformation, resulting in significant traction for its products and services. Given its leadership position in the market, TCS is well-placed to take advantage of this shift.
The shares have run-up by more than 53% from their March-lows to hit a 52-week high of ₹2,302 last week. TCS is currently trading at a PE ratio of about 25, as compared to the industry average of 20.
Our VGQM model has a HOLD rating on the stock.