* TCS shares gain after Oct-Dec earnings
* CLSA, Jefferies upbeat about outlook
* Barclays warns about revenue growth
(Adds comments from analysts)
MUMBAI, Jan 15 India's largest software services
exporter Tata Consultancy Services Ltd (TCS) gained the
most in more than eight months in Mumbai trading after posting
better-than-expected earnings and prompting a raft of analyst
HSBC upgraded TCS to "overweight" from "neutral," and
"modestly" increased its profit outlook for the year ending
March 2014 by 2 percentage points, citing improving margins and
an expected rise in demand.
CLSA described the quarterly earnings as "picture perfect"
and upgraded the stock to "outperform" from "sell."
TCS reported on Monday a 23 percent rise in quarterly profit
from a year earlier and reiterated it should beat a closely
watched industry growth forecast.
Its shares advanced as much as 4.9 percent on Tuesday, the
most since April 24 last year, and were up 2.1 percent as of
However, Barclays Capital kept TCS at "equalweight," saying
the company's revenue growth of 3.3 percent quarter-on-quarter
was slightly below its forecast.
"While passing muster versus our estimates, TCS' results
paled compared to the revenue growth posted by Infosys last
week," Barclays analysts wrote in a note.
Infosys posted a 4.2 percent gain in revenue for the quarter
ended December compared with the previous three months.
The mixed analyst reaction to TCS came after the software
services exporter consistently topped estimates with its
earnings last year.
Other analysts reiterated their bullish calls on TCS, with
brokerage Jefferies maintaining a "buy" rating.
"TCS has delivered quarter after quarter, justifying premium
valuations over peers. Our view has been that 2013 is likely to
be a better year for Indian IT as far as demand is concerned,"
Jefferies wrote in a note.
Shares in Infosys fell 0.4 percent after surging 21 percent
since Friday when the company announced its third-quarter
(Reporting by Rafael Nam and Abhishek Vishnoi; Editing by Ryan