TCS vs Infosys snapshot: A comparison between two IT giants

TCS vs Infosys: Drawing comparison between the two IT giants is a quarterly phenomenon, and this time it's TCS which has called the shots. Notably, Infosys share price had tanked 6 per cent intraday post Q4 results, while TCS share price surged over 6 per cent to hit its record high today. In Tuesday's trade, TCS surged over 6 per cent so far to hit its all-time high of Rs 3399.90. The company is the most valuable firm on Dalal Street in terms of market capitalisation, it even beats Reliance Industries. TCS brand value has crossed $10 billion mark this year. Meanwhile, Infosys, under CEO Salil Parekh is looking to get its act back together to grab the limelight once again. Infosys share price today rallied 4 per cent to hit its intraday high of Rs 1179. The stock is trading over 3 per cent lower against its 52-week high of Rs 1220.

Meanwhile, Gaurang Shah of Geojit Financial Services gave a Sell call on Infosys and a Buy on TCS for the short-term, even as he remained positive on both for the long-term. Here's a brief comparison between Infosys and Tata Consultancy Services.

Infosys

Key financials 

• Net profit slipped 28 per cent 
• Revenues surged 1.6 per cent
• Dollar revenues surged 1.8% per cent
• Volume growth slipped 1.1 per cent 
• EBIT margin up 40 basis points to 24.7 per cent
• FY19 revenue guidance 7-9 per cent
• Attrition increased from 15.8 per cent to 16.6 per cent
• Rs 30.5 per share dividend announced
• Dividend to be given to 10,400 shareholders in FY19
• One client added for order worth $7.5 crore 
• One client added for order worth $5

Key Ratios

• Earnings per share (EPS): Rs 71.07
• Price to earnings (PE) ratio: 15.9x

72% brokerage houses are have put a Buy call on the stock

TCS

Key financials 

• Net profit surged 5.5 per cent
• Revenues surged 3.8 per cent in CC terms
• Dollar revenues surged 4 per cent
• Volumes grew by 2 per cent  
• EBIT margin up 20 basis points to 25.2 per cent
• FY19 revenue guidance at 10 per cent growth
• Attrition slipped to 11.8 per cent; lowest in the sector
• Rs 29 per share dividend announced
• 1:1 bonus announced
• One client added for order worth $10 crore
• Three clients added for order worth $5 crore each

Key Ratios 

• Earnings per share (EPS): Rs 134.3
• Price to earnings (PE) ratio: 23.8x

80% brokerage houses recommending buying the stock