The broking firm Motilal Oswal instilled confidence in Tata Consultancy Services as it reported its Q4 results. The brokerage house kept the target price unchanged at Rs 4,600, with iterating a “Buy” rating. Motilal also maintained its earnings per share estimates for FY25-26.
Over the next two years, the broking firm expects a USD revenue growth of 10% and an EPS of 15%.
TCS is positioned well to take a hit of a weakening macro environment and ride on the anticipated industry growth due to its size, big order book, and exposure to long-duration orders and portfolios.
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“Owing to its steadfast market leadership position and best-in-class execution, the company has been able to maintain its industry-leading margin and demonstrate superior return ratios,” said Motilal.
Another brokerage house Prabhudas Lilladher said that the company’s business mix is more favourable to the current enterprise spending which is diverted to stimulate core business functions or bring efficiency to their operations.
It believes that the company’s revenues will grow by 8.1% and earnings by 11.5% over FY24-26. It has a target price of Rs 4,360 on the stock of IT major, with an “Accumulate” rating.
Also, InCred Equities maintained its rating of “Hold” on the stock with a target price of Rs 4,039 per piece, an increase of 11.3% from the earlier one. However, it slashed the USD revenue growth to 6.7% from 7.2% earlier. “Better order book conversion & faster BSNL deal ramp-up
are upside risks while higher project cancellations is a downside risk,” said InCred in its research report.
