TCS posts stable margins, big deals as brokers split
TCS just posted stable margins and big new deals for the last quarter, but experts can't quite agree on where the stock is headed.
CLSA and JPMorgan are upbeat, pointing to solid GenAI gains and a strong pipeline.
Nomura is hopeful for next year, while HSBC is playing it safe and Jefferies is more cautious, flagging some margin worries.
Brokers set targets ₹2,275 to ₹3,150
CLSA likes TCS's GenAI revenue ($2.3 billion annually) and sets a target of ₹2,985.
JPMorgan highlights $12 billion in fresh deals with an even higher target of ₹3,150.
Nomura sees brighter days ahead in FY27 (target: ₹2,930), but HSBC says things look decent given tough times for IT overall (target: ₹2,755).
Jefferies isn't convinced yet; they're concerned about a margin miss versus estimates and AI-led revenue deflation (target: ₹2,275).
Bottom line: most see promise in AI and new business wins, but some worry about industry headwinds sticking around.