TCS CMP RS 504, BUY FOR TARGET PRICE OF RS1150

TCS currently trades at Rs 504, implying a price to earnings multiple of 7.9 times our estimated FY11 earnings. Considering the fact that offshoring as a concept is gaining increasing acceptance, the company's move to 'full-service capabilities', its scalability, top quality management and premier positioning amongst the top offshore service providers, we expect the company to clock superior topline and bottomline growth over the long-term. We thus recommend a 'BUY' on the stock with a 2 year target price of Rs 1,150. This implies compounded annual returns of almost 52% for investors.