TCS shares trade in the green after company fires six employees
TCS is investigating the role of three more employees, Chandrasekaran said, without giving any details about the employees or their designations.
Shares of TCS, India's largest IT services provider, rose half a per cent, to Rs 3,229.8 apiece in the opening deals on Friday. The buying interest came after TCS acted against six employees after finding them favouring a few staffing companies, Tata Group Chairman N Chandrasekaran said on Thursday.
"We found six employees who did not follow the ethical conduct... We have banned all those six employees and also the six companies, Chandrashekaran added, pointing out that the action has been taken following the investigation.
The company is investigating the role of three more employees, Chandrasekaran said, without giving any details about the employees or their designations.
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"We can't quantify what favours they (the employees) got, but they certainly behaved in a way that they were favouring certain firms," the chairman added.
Earlier this month, there was a media report alleging a 'bribes-for-jobs' scandal at the Tata Group firm and that people involved had earned at least Rs 100 crore.
Julius Baer has given a ‘hold’ rating on the stock with a target price of Rs 3,500 apiece.
"We remain constructive on TCS’s longer-term growth prospects, given its ability to structure large multi-service and complex deals, strong execution capabilities, healthy client relationships, deal wins across verticals, and strong Free Cash Flow generation," the brokerage said in its report.
YES Securities has given a ‘buy’ rating on the stock for a target price of Rs 3,676 apiece, which translates to an upside of 14.3 per cent from Wednesday’s closing.
"The long-term demand story remains intact, led by cloud adoption and data analytics across enterprises. However, clients remain cautious, are taking longer to make decisions, and are slowing down discretionary IT projects, which would result in lower revenue growth in FY24," the brokerage said in its report.
TCS share price: Past performance
So far in 2023, the stock has declined nearly 1 per cent against the headline index’s rise of over 4 per cent.