scorecardresearchTCS trades in the red in early trade as MD & CEO Rajesh Gopinathan resigns

TCS trades in the red in early trade as MD & CEO Rajesh Gopinathan resigns

Updated: 17 Mar 2023, 09:43 AM IST
TL;DR.

  • The board appointed K. Krithivasan as the CEO designate with effect from March 16, according to the company's exchange filing.

Rajesh Gopinathan to step down as MD & CEO; K Krithivasan appointed as CEO designate (Mint)

Rajesh Gopinathan to step down as MD & CEO; K Krithivasan appointed as CEO designate (Mint)

Shares of Tata Consultancy Services Ltd (TCS) were trading in the red zone in Friday's early trade after Rajesh Gopinathan, managing director (MD) and chief executive officer (CEO) of the company, resigned on Thursday evening

The stock has been down for the last four trading sessions.

The board appointed K. Krithivasan as the CEO designate with effect from March 16, according to the company's exchange filing.

In the upcoming fiscal year, Krithivasan will replace Rajesh Gopinathan as MD and CEO after a transition period. Gopinathan, who was re-appointed last year, will continue with the company till September 15.

K. Krithivasan is presently President and Global Head of the Banking, Financial Services, and Insurance (BFSI) Business Group at Tata Consultancy Services. Additionally, he serves on the boards of TCS Iberoamerica, TCS Ireland, and the TCS Technology Solutions AG supervisory board.

"We believe TCS has among the strongest leadership bench in the industry; hence, the transition shall be as smooth as when Gopinathan had taken over the reins from Chandrasekaran, who was promoted as Chairman of Tata Group. Any drop in the stock price must be used as an opportunity to add as valuation is no longer expensive, which makes risk-reward profile attractive," said brokerage Nuvama Research.

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TCS in the last five trading sessions.

According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the stock is approaching key levels around 3,050 - 3,100 where buying may remerge or long term investors can look to buy.

According to a MintGenie poll, 42 analysts on an average recommend ‘hold’ on the stock.

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First Published: 17 Mar 2023, 09:43 AM IST