Watching TCS’s growth in revenue and rise in profits for the fourth quarter, JP Morgan maintained the overweight rating on Tata Consultancy Services. Price target and earnings per share estimates for Technology major of Asia has been raised by brokerage house. JP Morgan forecasted TCS’s FY12 earning per share at Rs 54 and FY13 EPS at Rs 64.8.

JP Morgan analysts, Viju George and Amit Sharma said that TCS has maintained its revenue growth better than Infosys over the last few quarters and this growth has been accompanied by improved profitability and therefore all these factors justifies the premium.

Earlier Infosys was considered as valuation benchmark in India IT service sector but TCS has replaced Infosys with its strong growth in fourth quarter ended March 2011, said by JP Morgan.

An analyst said in a note that in many respects TCS emerged as the valuation benchmark in the IT sector and maintained its margins higher than Infosys.

JP Morgan also said that TCS proposed 12-14% offshore hike in wages and also has concerns for the appreciating rupee and higher wage expenses may put pressure on TCS revenue growth.