TCS – Defensive giant to outshine peers in 2023, Motilal Oswal

We believe Tata Consultancy Services Ltd., among our IT services coverage, is best positioned to ride out the near-term moderation in technology spending, on account of macroeconomic stress in developed economies.

With tech spending shifting toward cost efficiency (versus focus on transformation over the last two years), TCS revenue growth is expected to outperform its peers (FY24 at 9.2% YoY constant currency in U.S. dollar versus large cap coverage median of 8.5% YoY) on account of its industry leadership in cost optimisation and strong order book.

Further, its better operational efficiencies is expected to drive up its profitability, leading to 20% YoY Indian rupee profit after tax growth in a tough year. Bloomberg