The brokerage highlights TCS’s disciplined execution, strong order book, and full-service offerings as key strengths to navigate the current demand environment.
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Yes Securities Report
Yes Securities remains positive on Tata Consultancy Services Ltd. over the next 12 months, citing a broad-based recovery in revenue growth, accelerating deal conversions, and resilient margins despite wage and investment headwinds.
The brokerage highlights TCS’s disciplined execution, strong order book, and full-service offerings as key strengths to navigate the current demand environment.
Sector-wise, momentum in BFSI and reversal in North America/UK—driven by mega deal ramp-ups and JLR revival—are expected to support international revenues in FY27, while the BSNL purchase order provides an incremental boost to India revenues.
On a three-year horizon, Yes Securities remains constructive on TCS, as the company leverages its capabilities in large-scale project execution, systems integration, and ecosystem partnerships to expand into adjacent areas such as data centres and sovereign cloud.
The 1GW data-centre foray, executed in collaboration with hyperscalers and governments, underscores TCS’s intent to capture the infrastructure layer of the AI economy and reinforce long-term annuity revenues.
Coupled with deep enterprise relationships, an AI-first delivery model, and disciplined capital allocation, Yes Securities sees TCS evolving into a more diversified, infrastructure-plus-services technology leader with sustained earnings compounding potential.
Yes Securities reiterates Buy rating with target price of Rs 4,095 at 25x Q4 FY27-Q3 FY28 EPS of Rs 163.8.
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Also Read: TCS Q3 Review: Brokerages Split As Inline Quarter Meets Tepid Global Demand, FY27 Hope Intact
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