Tata Consultancy Services (TCS) shares fell 2.13% to Rs 3054.75 on Tuesday after the company reported a consolidated net profit of Rs 10,465 crore for the quarter ending September 2022, a growth of 8.41% year-on-year from Rs 9,663 crore logged in the corresponding quarter of the previous year. Sequentially, the net profit increased by 9.93%.

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The stock is presently trading at Rs 3,075.00  down 1.48% from the closing price of Rs 3121.20 on Monday. TCS has underperformed its sector by 0.71%.  The stock has been falling since last week down 0.75% for the week. It has fallen 16.59% in the past year and is 4.94% away from its 52-week low of Rs 2926.

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The Sensex was trading 349.29 points or 2.60% lower at 57,641.82. It touched an intraday high of 58,027.52 and a low of 57,567.41.

The Tata group company stated that the operating landscape is “challenging” and requires “vigilance,” despite the fact that headwinds such as recession in its largest market, increasing inflation globally, and currency volatility have yet to materialise in its order pipeline.

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The revenue from operations grew by 18.01% year-on-year to Rs 55,309 crore as against Rs 46,867 crore in the same quarter last year. Sequentially, the revenue grew by 9.93%.

“We maintain our positive stance on TCS. Our target price of Rs 3,580 implies 27x FY24E EPS, with a 15% upside potential. We reiterate our ‘buy’ rating,” said brokerage firm Motilal Oswal.

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Brokerage firm Emkay said revenue and margins met forecasts, but Reliance Securities analysts warned IT services will be vulnerable to worsening global dynamics such as increasing inflation, economic slowdown, currency headwinds, and expected spending cuts.