Last Updated: March 17, 2023, 12:44 IST
Tata Consultancy Services (TCS) CEO Rajesh Gopinathan’s resignation has come as a shock for the Street. IT big introduced the appointment of Ok Krithivasan as the brand new CEO designate for TCS. Ok Krithivasan will undergo a transition interval with Rajesh Gopinathan and might be appointed as MD & CEO within the subsequent Financial Year.
Shares of Tata Consultancy Services marginally declined within the morning commerce on Friday.
On the BSE, the scrip opened at Rs 3,151 after it had closed at Rs 3,184.75 on Thursday. After touching an intra-day excessive of Rs 3,194, the inventory was down 0.62 per cent to Rs 3,165.
The market valuation of TCS, a key constituent of Sensex, stood at Rs 11,58,419.07 crore on the BSE.
On the NSE, the corporate was down 0.47 per cent to Rs 3,169.90. It had opened at Rs 3,150.50 after ending the day at Rs 3,185 on Thursday.
Here’s What Analysts Say About the TCS Stock
Citi has maintained a ‘sell’ name on TCS calling Gopinathan’s resignation as a shock for D-Street. The appointment of Ok Krithivasan must be extra about continuity, it famous, including that Krithivasan has been in TCS for 34 years now. The modifications to technique, if any, introduced by him might be keenly awaited, the brokerage agency additional mentioned.
Given comparatively restricted investor interactions, the Street will keenly stay up for interacting with the CEO designate, Citi mentioned. TCS shares have been buying and selling at Rs 3,167.05 on the NSE and have been down by Rs 17.95 or 0.56 per cent towards Thursday’s closing worth.
“Rajesh Gopinathan was re-appointed as CEO final yr and subsequently his resignation is a shock and prone to be perceived negatively. However, Krithivasan’s experience within the BFSI area in addition to the inner promotion of a TCS veteran who has labored carefully with the outgoing CEO for over 2 many years, ought to assist TCS from a long-term perspective. The firm has continued to ship on robust income progress, deal pipeline and bettering margins over the previous few quarters. We count on TCS’ income/EBITDA/PAT to develop at 13 per cent/14 per cent/14 per cent between FY22-25E,” said Centrum Broking which has maintained its ADD rating on the TCS shares at a target price of Rs 3,607.
Analysts at Nuvama Research believe TCS has among the strongest leadership bench in the industry; hence, the transition shall be as smooth as when Gopinathan had taken over the reins from Chandrasekaran, who was promoted as Chairman of Tata Group.
“We, however, view this is as a continuation of a trend at TCS, wherein baton shall be passed from one veteran to another. In the 55 years of TCS’s history, Krithivasan will only be its fifth CEO—a testimony to stability and quality of its management. We see nil disruption from this management transition. Any drop in the stock price must be used as an opportunity to add as valuation is no longer expensive, which makes risk reward profile attractive,” they added whereas sustaining ‘Buy’ on the IT inventory with a goal worth of Rs 4,100.
Read all of the Latest Business News right here
