Stock market analyst Hitendra Vasudeo of stockmechanics.com has maintained ‘buy’ rating on Tata Consultancy Services (TCS) stock with an intraday target of 885.

According to Mr. Vasudeo, interested traders can purchase the stock above Rs 852 with a strict stop loss of Rs 837. If the stock market remains on positive track, the next target will be above Rs 895.

Shares of the company, on Monday (Aug 14), closed at Rs 841.80 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 173723. Current EPS & P/E ratio stood at 47.40 and 17.76 respectively. The share price has seen a 52-week high of Rs 1151 and a low of Rs 719.10 on BSE.

The stock has good potential and it can still exhibit superb surge. It will achieve the target price as the company has strong expansion plans and strong operating capabilities.

Tata Consultancy Services (TCS) is reportedly on the brink of buying Citigroup’s captive BPO arm Citigroup Global Services (CGSL). The other competitor for the captive BPO unit was IBM.

The company will launch a pilot project for the aspirational Passport Seva Project, a public-private initiative in order to develop passport services, in two cities soon.

The ministry of external affairs July 23 had issued the LOI (letter of intent) to TCS after it was declared the "best value bidder" for the project that is speculated to be worth Rs 10-15 billion.

Moreover, the company reported a steady increase in its standalone net profit for the three months period ended June 2008. During the same period, the company’s net profit rose 12.12% to Rs 12,040.10 million from Rs 10,738.50 million in the same quarter of the previous year.

The company posted earnings of Rs 12.30 a share during the quarter, registering 12.12% growth over previous year period. Net sales for the quarter arose 24.69% to Rs 52,120.00 million, whilst total income for the quarter rose 22.74% to Rs 53,218.80 million.

The Company’s directors, at its meeting held on Jul. 16, 2008, announced an interim dividend of Rs 3 a share of Re 1 each of the company.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Satyam, Infosys, HCL Tech and Wipro.