Selective vision for TCS investors?

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Key Points

The rising caution among clients led to deferment of discretionary technology spending, hurting revenue growth...

Large/mega deal pipeline is reasonably good in BFSI and telecom vertic-als where TCS has a fair chance of conversion," a Kotak Institutional Equities report said..

Deal wins were steady at $10.2 billion, but are up just 4% year-on-year on the last twelve-month basis; not replicating Accenture outsourcing deal strength (up 22% year-on-year)," said a report by Ambit Capital..

Risks of growth versus margin trade-off as TCS has consistently underperformed Accenture (outsourcing)/Infosys over the last 14-15 quarters keeps us cautious," added the report..

TCSs subdued book-to-bill ratio, muted headcount addition and weak commentary does not inspire a revival in growth in the near-term," analysts at Jefferies India said..

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