The company's investors are also worried about the company's profits which might fall in the coming years. It will affect investors, if the profits fall. Thus, in such situation, experts are of the view that the reason of the decline of TCS share is because of Air India acquisition.
Why is TCS shares falling?
Shares of Tata Consultancy Services (TCS) plunged over 6% in Monday's opening deals after the IT major's second quarter revenue and margin came below analysts' estimates. ... Its EBIT margins improved 10 bps QoQ to 25.6%, whereas revenue grew 4% QoQ in constant currency (CC) terms.
Is it good to buy TCS shares now?
The overall outlook for TCS as well as the overall industry is bullish, and any meaningful correction in the stock now is a great buying opportunity, he told CNBCTV18.com. A high attrition rate is only a major concern for the industry which may lead to some margin pressure, he told CNBCTV18.com.