TCS declared weak result - A news that tumbled the market today

Earning season kicked with the result of heavy weight TCS. All were expecting weak result ,but not so much as declared. The share price of TCS has to taste dust as it fallen more then Rs 100 in a day. It is expected that the weakness will extended further in next week.

Any shrewd investor will if go through the commentary the TCS Management has given after result , gives silver lining for better year ahead. First , the management is confident to maintain the profit margin due to good orders in pipe line. Secondly always Dollar conversion will not affect adversely. thirdly the impact is not in had of the management of TCS. and not to be associated with operational result of the company. Finally software industry always depends on technology. That is advent and advance through human minds. Thus the company which pay better then industry average there attrition will be low. ( IT is almost the lowest among big tickets of TCS). TCS has declared loyalty bonus to sustain and to motivate its more then 3,00,000 employees.

The employees are given 7 days bonus as it has completed 10 years of listing. That is huge cash benefits for employees. Longer the time spend with TCS better and higher bonus. Thus this will give better result in long term as attrition will be low and growth will be high due to that..

I personally believe , that this is the time to start accumulate TCS share in small bunch. The merger with CMC will give better proximity and synergy to TCS. It is a libral dividend declaring company. In more it is due to declare liberal bonus.