TCS Outlook: The country’s largest IT company Tata Consultancy Services (TCS) has released its December quarter results. Despite the decline in revenues in US dollars, TCS’s net profit and margins have increased in line with expectations, and the management is also considering 2025 as better than 2024 last year. In such a situation, after the results, most of the analysts remain bullish on it. Whereas CLSA has upgraded its rating. Its share may rise by 12 percent from the current level. Out of 49 analysts covering it, 31 have given buy rating, 13 have given hold and five have given sell rating. The shares closed at Rs 4036.65 (TCS Share Price), down 1.72 per cent, on BSE before the December quarter results were announced.
What is the trend of brokerage firms?
Brokerage firm Bernstein has maintained its outperform rating with a target price of ₹4,700. The brokerage says that when the deal momentum increases from a large scope and the management is also enthusiastic, then it is a bullish sign and all these things are visible in the results of TCS.
At the same time, considering various growth factors, CNSA has upgraded the rating of TCS from Neutral to Outperform and increased the target price from Rs 4251 to Rs 4546. The brokerage says that the valuation is also quite attractive. Its orderbook may strengthen due to AI amid improvement in demand.
On the other hand, Nomura has a neutral outlook with a target price of Rs 4020. The brokerage says that the situation regarding the growth of the company in the financial year 2026 does not seem completely clear. However, the brokerage did say that the company’s decision-making ability is improving and discretionary demand is also improving. The brokerage expects margins to improve in FY 2026.
HSBC also maintains neutral rating with target price of Rs 4540. The brokerage says that due to higher exposure in Europe and after the BSNL deal, its growth may remain sluggish compared to other big companies. However, if there is support from Forex and recovery in discretionary demand remains fast, TCS will get good support.
How were the shares in one year?
TCS shares have made huge profits for investors. Last year on June 4, 2024, it was at Rs 3593.30, which is a one-year low for its shares. From this low level, it jumped by about 28 percent in 3 months to reach a price of Rs 4585.90 on September 2, 2024, which is a record high for its shares. However, the rise of shares stopped here and at present it is about 12 percent downside from this high.
TCS Q3 Result: Big jump of 12% in profit, better results than expected, big dividend gift to shareholders
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