TCS receives buy rating from Anand Rathi with ₹2,430 target
Tata Consultancy Services (TCS) just got a "buy" nod from Anand Rathi, who set a target price of ₹2,430 for its shares.
TCS posted steady growth in Q2 FY27, up 0.5% from last quarter and 2.8% year-over-year in constant currency.
While revenue from India slipped by 10.3% following project deferrals, the company saw strong gains in the UK and sectors like BFSI, manufacturing, and tech.
Total contract value $9.6bn, AI $3.1bn
TCS's total contract value reached $9.6 billion this quarter excluding the Porsche and Best Buy engagements.
Annualized AI revenue stood out too, jumping 19.2% to $3.1 billion and now making up about 10% of overall revenue.
Even with higher subcontracting costs, profit margins held steady at 24%, helped by lower admin expenses.
Anand Rathi sees 17% TCS upside
Forecasts for the next few years only saw minor tweaks, but analysts are upbeat thanks to TCS's focus on core markets and AI growth.
Anand Rathi sees potential for a solid 17% upside from today's prices, so if you're watching tech stocks, this one might be worth keeping an eye on!