Tata Consultancy ServicesLtd (Q1 FY09) Sedate performance



CMP Rs728 , BUY

Target price Rs875, Upside 20%

* Dollar revenue growth disappoints plagued by issues with respect to key clients

* Sluggish growth in BFSI continues; growth witnessed in ADM and some newer services

* OPM decline of 110 bps qoq was lower than anticipated

* Net profit beats estimate aided by change in depreciation policy

* Employee addition was healthy but attritio n inches up again

* Rate TCS as BUY with target price Rs875; short-term outperformance likely.