For the last several quarters, every time TCS declared quarterly numbers, investors were upbeat. Ditto for HCL Tech, which has been growing at a staggering pace.

The story in Infosys has never been the same in the last three years or so, whenever it declared results. Sometimes, the results were so disappointing that the stock has fallen as much as 16-17 per cent on the day of the results.

What's happening in TCS and HCL Tech?

Analysts say that the result of TCS and HCL Tech were not very disappointing. There could have been some heavy selling pressure from foreign funds in these stocks which probably triggered the sharp fall. In fact, a few broking firms are continuing to recommend the TCS stock.

Infosys is a clear buy

The shares of Infosys seem to be recommended by several broking firms. ICICI Direct had this to say after Infosys's results.

"The FY16E EPS upgrade coupled with target multiple raise to ~19x, 10% premium to its FY09-14 one-year forward PE average of 17.7x, leads to a revised target price of Rs 4500 and BUY rating vs. HOLD earlier".
Dolat Capital had this to say after Infy's results: "We have broadly maintained our estimates with a Revenue/ earnings CAGR of 14%/16% over FY15-17EWe up our rating to Outperformer on the stock with a TP of Rs 4465 valued at 18x on FY16E earnings (implies 15x FY17E),".

Conclusion

It would be stupid not to bet on TCS and dump the stock. Probably, the quarterly numbers for the period ending June 30, 2014 were marginally below estimates, simply because expectations from TCS have run very high. HCL Tech too would remain a good buy at lower levels.

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