Tata Consultancy Services Ltd. is scheduled to report its April–June quarter results on Thursday. The stock declined for the third straight quarter and fell over 4% in the first quarter of the financial year ending March 31, 2026.
By comparison, the NSE Nifty IT Index rose more than 5% during the period, while the benchmark NSE Nifty 50 gained over 9%.
Valuation, Growth Convergence In Focus
Brokerages say the stock is trading at a discount to both its five-year average and sector peers and value TCS at 23–25 times one-year forward earnings and adjust their multiples to reflect a convergence in growth with other large IT firms.
Goldman Sachs has a 'buy' rating with a price target of Rs 4,040. “At 23 times 12-month forward price to earnings, TCS is trading at a discount to its five-year average and to the sector average,” the firm said in a note. It lowered its valuation multiple from 26 times to 25 times, citing growth convergence with peers.
JPMorgan maintained a 'neutral' rating and a target price of Rs 3,850, based on 25 times one-year forward earnings, in line with the five-year average. “Key upside risks to the target include rupee depreciation, stronger-than-expected revenue growth, higher tech spending by BFSI and retail clients, a stronger US economy, and favourable cross-currency movements,” it said.
Other analysts remain cautious. Systematix Group has a buy call with a target of Rs 4,017, while Axis Capital and DAM Capital are more conservative, rating the stock 'reduce' and 'neutral', with targets of Rs 3,590 and Rs 3,600, respectively.
Motilal Oswal, Antique Broking, and Centrum Broking are among brokerages with 'buy' ratings and target prices in the range of Rs 3,850 to Rs 4,211. BNP Paribas Exane has the highest price target at Rs 4,400, with an 'outperform' call.
In contrast, Ambit Capital has a sell rating with a target of Rs 3,220, while HSBC and Nirmal Bang recommend 'hold', with targets of Rs 3,665 and Rs 3,829, respectively.
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