IT giants Tata Consultancy Services (TCS) and Infosys posted their Q3FY22 result last week. The results of the two IT majors saw TCS and Infosys beating street's expectations on back of strong performance in October-December 2021 quarter.  

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Brokerage firm Geojit financial services has given a buy rating to both IT shares and sees an upside of up to 19 per cent in 12 months.  

Saying that the TCS has kept the growth momentum sustained in the Q3Fy22, it said outlook for the India's largest IT company remains intact. At the current market price (CMP) of Rs 3,969, Geojit financial sees a target of Rs Rs. 4,457 for TCS shares in one year, which translates into 12 per cent.  

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TCS) had reported a 1.5% QoQ rise in the consolidated profit at Rs 9,769 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 9,624 crore in the previous quarter ended September 30, 2021. 

Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization that provides a comprehensive range of IT services to its clients in industries. The Company that caters to finance and banking, insurance, telecommunication, and transportation among others has also announced a buyback offer to the tune of Rs 8,000 crore comprising 4 crore equity shares at a price of Rs 4,500 per equity share.  

On Infosys, which outperformed its peers in December quarter result, Geojit financial remains even more bullish.  

It said resilient performance and promising outlook makes IT major Infosys a good bet in long-term. Giving a buy rating, the brokerage said the shares could reach a target of Rs. 2,299 in 12 months from the CMP of Rs 1,928. This is a 19 per cent increase from the CMP, it said.  

Infosys reported a 7.2% QoQ rise in its consolidated profit at Rs 5,809 crore for the quarter ended December 31, 2022. It had posted a profit of Rs 5,421 crore in the previous quarter ended September 30, 2021. 

Infosys Limited provides IT consulting and software services, including e-business, program management and supply chain solutions. The Group’s services include application development, product co-development, and system implementation and system engineering. Infosys targets businesses specializing in the insurance, banking, telecom and manufacturing sectors.  

Speaking of result posted by IT shares, Gaurav Garg, Head of Research at CapitalVia Global Research, said we have witnessed good results in IT sector, although the expectations were higher from the 3 IT giants—TCS, Infosys and Wipro.  

"The margins were squeezed in this quarter with all giants facing problem of attrition rate going higher than expected. We expect the sector to grow further in this quarter as the world move towards the digital world faster than ever," he added.