Mumbai: Kotak Institutional Equities cut Tata Consultancy Services to 'reduce' from 'add', despite the company's stronger-than-expected earnings a day earlier, citing concerns about valuations and profitability in the industry.
"We believe that slowdown and lack of consolidation in the sector will manifest in reduced pricing power and profitability for TCS and the industry," Kotak said in a note on Friday.
Kotak also cut TCS' target price to Rs 1,125 from Rs 1,280. TCS shares were up 2.1 percent to Rs 1,262.30 at 10:15 a.m. India time.
Copyright Thomson Reuters 2012
"We believe that slowdown and lack of consolidation in the sector will manifest in reduced pricing power and profitability for TCS and the industry," Kotak said in a note on Friday.
Kotak also cut TCS' target price to Rs 1,125 from Rs 1,280. TCS shares were up 2.1 percent to Rs 1,262.30 at 10:15 a.m. India time.
Copyright Thomson Reuters 2012
