Angel Broking has maintained 'Accumulate' on Tata Consultancy Services (TCS) with target price of Rs 2,410 in its report.

TCS has inked an agreement with Mitsubishi Corporation to form a new IT services company of significant scale in the Japanese market with annual turnover of over USD 600 million and over 2,400 employees. Under the agreement, India's largest software services firm will merge TCS Japan and Nippon TCS Solution Center with IT Frontier Corporation (ITF), the fully owned arm of Mitsubishi. The new company is yet to be named.

TCS will hold a 51% stake and Mitsubishi 49% in the merged entity. The deal is a cash and equity deal, and cash payout by TCS is USD 50 million. The new entity is expected to be operational from July if approvals are in place and is expected to report revenue of USD 300 million over the remaining nine months of the financial year. This deal lends TCS an edge in the Japanese market with local manpower, client references as well as other Japanese clients in Hi-tech, Manufacturing, BFSI and Retail verticals. TCS Japan, before the merger, had revenue of about USD 100 million and fewer than 1,000 employees.

''We continue to remain positive on the stock with target price of Rs 2,410,'' the stock broker said.

Shares of the company gained Rs 3.15, or 0.14%, to trade at Rs 2,223.65. The total volume of shares traded was 33,929 at the BSE (12.12 p.m., Tuesday).

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.