TCS targets rise: 15 brokerages eye Rs 3,350 after solid Q4
TCS targets rise: 15 brokerages eye Rs 3,350 after solid Q4
Post-Q4, TCS posts solid margins and a $12B TCV, prompting 15 brokerages to lift targets as high as Rs 3,350; Nomura India lifts FY27-28F EPS 2-3% and keeps Buy.
Tata Consultancy Services delivered a largely in-line March-quarter performance, with revenue and EBIT margins meeting expectations, and an impressively strong order book. The EBIT margin stood at 25.3%, up 10 basis points from the previous quarter, helped by better realizations and currency tailwinds though offset by reinvestments and higher subcontracting costs. The company reported a total contract value of about $12 billion for the quarter, including three mega deals, underscoring a robust services pipeline.
Among analysts, sentiment stayed constructive. Eighteen brokerages maintained a positive view on TCS, and Nomura India raised its FY27-28 EPS estimates by 2-3 percent while continuing to rate the stock as a Buy. A target of up to Rs 3,350 appeared among several houses, reflecting the stronger realizations and a stronger-than-expected exit from FY26 in some assessments.
Nirmal Bang Institutional Equities noted the quarter was a strong exit to FY26 and argued that TCS can deliver sustainable earnings growth, margin resilience, healthy return on invested capital, and solid cash flows. It reiterated a Buy rating and left unchanged its target at Rs 3,046 based on an unchanged multiple of 19x on the Mar-28E EPS. Other brokers also flagged a return to normal seasonality, with 1Q and 2Q likely to be stronger than 4Q as macro uncertainty persists. Antique Stock Broking and Emkay Global pointed to Q4 revenue around $7.7 billion in constant currency terms, noting a more constructive outlook despite a lingering macro headwind and a likely pickup in the early quarters of the new year.
