10 Oct , 2024 By : Debdeep Gupta
Shares of Tata Technologies were off to a positive start on the bourses on October 10, after rising 4 percent to Rs 1,089, extending gains for a second trading session. This comes despite Axis Capital initiating coverage with a 'reduce' call citing weak prospects for the counter.
With a price target of Rs 950, the domestic brokerage forecasts a downside potential of 10 percent from the last close on the NSE. Tata Tech shares have tanked 9 percent since the start of the year.
The firm sees no relief from growth cuts, despite the easing of headwinds from the VinFast ramp-down. Additionally, it expects anchor-client concentration to increase, reversing gains made in recent years. Despite underperformance so far this year, valuations remain elevated, with client concentration projected to rise further in FY25 after declining from FY20 to FY23.
In the first quarter, Tata Tech reported a net profit of Rs 162.03 crore, down 15.4 percent from the year-ago period. Sequentially, the profit was marginally higher than Rs 157.24 crore in the March quarter, the Tata Group company said in an after-market filing on July 18.
At Rs 1,268.97 crore the revenue was better than Rs 1,257.53 in the year-ago period but was down 2.46 percent over the March quarter.
At about 10 am, shares of the company were trading at Rs 1,085, higher by 3.5 percent from the last close on the NSE.
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