TCS hits 52-week low; slips 9% in one week on Q1 margin disappointment

HSBC Securities believe relative premium to the market and likely slowdown in revenue growth will continue to restrict upside for IT stocks in the near term

Shares of Tata Consultancy Services (TCS) hit a fresh 52-week low of Rs 3,003, down 1 per cent on the BSE in Thursday's intra-day trade, falling below its previous low of Rs 3,023.35 touched on June 17, 2022. The stock of the information technology (IT) bellwether was trading at its lowest level since March 2021.

In the past one week, the market price of TCS has declined 9 per cent as the Tata Group company reported a 185-basis point (bp) sequential decline in earnings before interest and tax margin to 23.1 per cent for the quarter ended June, 2022