TCS shares rise over 1% after Q1 show. Should you buy, sell or hold the stock?

economictimes.indiatimes.com:

Tata Consultancy Services (TCS) reported a higher-than-estimated June quarter profit on Wednesday, shares of IT major rose over 1%, making it one of the best Sensex performers in Thursday's early trade. While foreign brokerage Nomura maintained a ‘Reduce’ rating on the stock, Motilal Oswal and Nuvama retained their ‘Buy’ stance on the counter. The technology major reported a nearly 17% year-on-year (YoY) rise in consolidated net profit for the June quarter to Rs 11,074 crore.

Consolidated revenue increased nearly 13% YoY to Rs 59,381 crore. While the net profit was above the ET Now poll of Rs 10,890 crore, the revenue was tad lower than the estimated Rs 59,500 crore. The board also approved an interim dividend payout of Rs 9 a share.Here's what top brokerages recommend on the stock following Q1 show:Nomura: Reduce | Target Price: Rs 2,800Nomura maintains a 'Reduce' rating for India's largest IT company with a price target of Rs 2,800.

TCS missed both revenue and margin estimates by Nomura in Q1. The order book is holding up, but near-term Tal visibility remains low, the brokerage said. Weak headcount addition persists, as attrition continues to moderate.

Nomura said that the company is unlikely to hit a 25% EBIT margin in FY24.Jefferies: Hold | Target: Rs 3,450Jefferies has a 'Hold' recommendation on TCS for a price target of Rs 3,450. The brokerage firm in a note said that TCS' Q1 revenues and margins were in line with its estimates while profits were ahead. Pressure across key verticals/regions weighed during the quarter gone by with demand uncertainties persisting.