TCS A 'Buy' Due To Undemanding Valuations, Says Motilal Oswal — Check Target Price, Potential Upside And More

With its market leadership position and best-in-class discipline execution, TCS has been able to sustain its industry-leading margin and demonstrate superior return ratios vs peers..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Motilal Oswal has reiterated its Buy rating on Tata Consultancy Services Ltd., valuing the stock at 26x FY28E EPS and setting a target price of Rs 4,400. This implies a potential 37% upside from current levels.The brokerage believes the risk–reward remains favorable as the IT major enters the next growth cycle, supported by strong fundamentals and a robust demand outlook..Valuation and View The brokerage maintains its estimates for FY26/27/28 and expect TCS to deliver 4.5%/7.2% YoY CC growth in FY27/FY28, supported by a demand recovery from H2 FY27 and further acceleration in FY28. Ebit margins are expected at 24.8%/25.0% in FY27/FY28. Over FY26-28, this translates into a ~5.7% CAGR in USD revenue and ~9.0% CAGR in Indian rupee EPS. With its market leadership position and best-in-class discipline execution, the company has been able to sustain its industry-leading margin and demonstrate superior return ratios vs peers. Valuations remain undemanding: At current valuations, TCS trades at a ~9% discount to its 10-year average P/E and at a ~19% discount to its five-year average. As AI adoption transitions from pilot programs to scaled, revenue-generating deployments, the brokerage sees an improving growth-visibility backdrop. .Five pillars of TCS’s AI strategyinternal transformation with a focus on driving an AI-first operating model; redefining services, including a new AI services transformation unit and a human + AI delivery model;a future-ready talent model centered on AI fluency; making AI real for clients through industry- and domain-specific solutions; and an AI ecosystem strategy spanning partnerships, merger and acquisition, and new venture creation..Click on the attachment to read the full report:.Crompton Greaves Gets 'Buy' Rating As Motilal Oswal Initiates Coverage — Check Target Price, Upside Potential.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

TCS A 'Buy' Due To Undemanding Valuations, Says Motilal Oswal — Check Target Price, Potential Upside And More

The brokerage believes the risk–reward remains favorable as the IT major enters the next growth cycle, supported by strong fundamentals and a robust demand outlook.

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