On Friday morning, shares of Tata Consultancy Services (TCS) fell by as much as 3.9 percent to an intraday low of Rs 1,925 on NSE.
On Thursday, after market hours, the IT giant released its quarterly results for the July-September period. Its net profit for the second quarter of the financial year 2019-20 was at Rs 8,042 crore, which is 1.80 percent higher than that of the same period of the previous year but 1.1 percent lower than the previous quarter.
The company's operating margin fell by 20 basis points to 24 percent.
Brokerages cut target price
Many brokerages have cut their target price for TCS following the Q2 results.
Citi maintained a 'sell' call on the stock and set its target price at Rs 1,870 per share.
Credit Suisse maintained a 'neutral' rating but cut its target price from Rs 2,070 to Rs 1,930 per share. The brokerage said that the company failed to recoup margin sequentially in Q2 after a wage hike in the first quarter and also said that despite being a high-quality franchise, it was not immune to an uncertain environment.