A better than expected result from India's largest software exporter, Tata Consultancy Services Ltd, have cheered the street but failed to impress one of the world's largest rating agency CLSA. The market gave thumps up to the result and the stock shot up as much as 12.4% or Rs. 130 after its fiscal Q4 results, but CLSA says it will stick to its underperform rating on the stock with a 12-month price target of Rs 1,160 compared to TCS's latest share price of Rs 1,195.
Despite TCS' upbeat comments on Monday, CLSA says the overall demand environment is volatile, while pricing pressures and the elevated costs of hiring will limit upside margins.
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