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    TCS can trade 40x PE; TP is Rs 4,000 per share, says Edelweiss Securities' Sandip Agarwal

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    TCS can trade 40x PE; TP is Rs 4,000 per share, says Edelweiss Securities' Sandip Agarwal

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    IT stocks have already priced in December quarter earnings and investors should not expect much price movement in till February or March, said Sandip Agarwal, Research Analyst-Institutional Equities, at Edelweiss Securities on Tuesday. Having said that, Agarwal also said that every quarter there will be an upgrade and stock price impact in IT space.

    IT stocks have already priced in December quarter earnings and investors should not expect much price movement in till February or March, said Sandip Agarwal, Research Analyst-Institutional Equities, at Edelweiss Securities on Tuesday. Having said that, Agarwal also said that every quarter there will be an upgrade and stock price impact in IT space.
    “I think that happened in June quarter, that happened in September quarter and it has already happened for this quarter because most of the stocks in the last 15 days have moved up very sharply,” he told CNBC-TV18. “So I will not expect much from here to move on the stocks till February or March,” he added.
    He expects rerating to happen in the stocks.
    “I am not worried about the growth,” Agarwal said.
    Agarwal believes Tata Consultancy Services (TCS) can trade at 40 times PE.
    “My target price is Rs 4,000 on TCS and I am very confident of that target price to be achieved in one year.”
    Infosys target price is at Rs 1,850, he said.
    “In Infosys we have a target price of Rs 1,850 from a long time. I am confident this will be achieved in one year. I am very confident that rerating will continue to happen and it will happen on the back of upgrades in estimates.”
    “We will be close to 4-5 percent growth for Infosys, TCS and maybe 3.5 percent for Wipro. Only place where I see lower growth this quarter will be Tech Mahindra which will be around 2 percent or slightly lower than that,” Agarwal said.
    According to him, HCL Technologies will breach its growth guidance by 150 basis points (bps).
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