With Talks of Tata Sons Selling 2.3 Crore Shares, TCS Stocks Plummet by 3% Soon after

TCS Stocks Plummet

 On March 19, Tata Consultancy Services (TCS) shares fell more than 3% to an intraday low of Rs 4022. Approximately 2.2 crore shares, or 0.6% equity, changed hands at an average price of Rs 4,043 per share.

During the day, about 2.2 crore shares were exchanged at an average price of Rs 4,043 per share, accounting for 0.6% of the total equity. Tata Sons has reportedly proposed to sell 2.34 crore shares in India’s largest IT service provider.

At 9:27 a.m., TCS shares were trading roughly 3% lower at Rs 4,032.50 on the National Stock Exchange. TCS shares closed 1.78% lower on the NSE yesterday, at Rs 4,219.25.

Tata Consultancy Services (TCS) is India’s second most valued listed corporation, having a market valuation of Rs 15 lakh crore. As of December 31, 2023, promoters held a 72.41% share, with Tata Sons having 72.38% and Tata Investment Corporation owning the remaining half.
Sharekhan gave TCS a “buy” recommendation, with a target price of Rs 4,750. This optimistic prognosis is based on TCS’s strong domain expertise and global footprint.

Sharekhan analysts believe TCS’s ability to cross-sell makes it well-positioned to capitalize on cost optimization, digital transformation, and developing technological services.
They expect TCS to maintain its strong revenue growth, fueled by an increase in large deal wins over FY25/26, as well as a revival in demand in critical areas such as BFSI. This growth trajectory is intended to mitigate problems in CY24 while capitalizing on emerging opportunities in newer technological services.

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