Buy TCS Ltd For Target Rs. 3,350 by Motilal Oswal Financial Services Ltd
* TCS is expected to post revenue growth of 1.0% QoQ CC, with international business growing ~1% and India flat; we assume the BSNL ramp-up in 3Q.
* Outlook on near-term demand & tech budgets, BFSI vertical, and deal wins are key monitorables.
* We expect EBIT margin to decline ~20bp QoQ due to one-month impact of wage hikes, talent investments, lower utilization, and constrained leverage.
* We believe pyramid and productivity gains remain key levers, but pricing pressure, client behavior, and the GenAI transition signal a start of realignment as vendors adapt pricing and delivery models.
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