TCS shares jump 4% despite muted Q3: Here are 4 reasons why brokerages are bullish

The TCS shares are up over 4% and hit an intra-day high of Rs 4,225 per share despite disappointing Q3 numbers. This is because brokerage firms are bullish on the stock. CLSA upgraded the IT major’s rating to Buy after it released its Q3 FY25. Meanwhile, Nuvama Wealth Management raised the target price to Rs 5,200 per equity share. Jefferies has maintained a ‘Buy’ rating on TCS.

Here is a look at why brokerages are bullish:  1. TCS Q3: CLSA bets on demand pick-up, AI

The brokerage house has upgraded the stock to a ‘Buy’ rating while maintaining the same target price of Rs 4,546. As CLSA sees multiple growth vectors ahead. According to the brokerage firm, the valuation of TCS looks attractive on a relative basis and the 5-year average. However, the third quarter was dismal from both growth and margin perspectives, said CLSA. The management’s commentary on demand has improved materially with a sharp pick-up in its order book. Plus, CLSA sees AI (artificial intelligence) as another key positive for demand ahead. 

2. TCS Q3: Jefferies bets on revival in discretionary spend

The brokerage firm maintained its ‘Buy’ rating on the stock with no change in the target price of Rs 4,760. In a research note, Jefferies said that the earnings were in line with estimates, but were encouraged by management comments on early signs of revival in discretionary spending (especially in North America BFSI) & healthy order book. Moreover, the company’s ramp-down of the BSNL deal may provide scope to improve margins.

3. TCS Q3: Nuvama bullish on deal wins

It raised the target price on TCS to Rs 5,200 per equity share against Rs 5,100, earlier. The brokerage firm said that the strong deal wins and management’s efforts to water down the impact of BSNL revenue as positive triggers for the stock. The revival in developed market growth and discretionary spending marks incrementally positive signs for the industry. It found TCS attractive over its peers like HCL Technologies and Infosys. Given its greater experience than peers in implementing large, complex, and mission-critical projects, the company is a serious contender for large deals. It maintained its ‘Buy’ rating on TCS post the third quarterly results. “Management remained upbeat on BFSI and retail, expecting both verticals to have bottomed out and to recover over the next few quarters,” said Nuvama in its research report. 

 » Read More

Related Articles

Why now is an opportune time to invest in bank FDs for the stability of your portfolio

The Indian equity market has been rather volatile in the last couple of months, with the benchmark indices experiencing steep declines. While the market has finally staged a remarkable rebound in March 2025 (gaining nearly 6%), it would be imprudent to be complacent and think that markets have bottomed out. The U.S. President Donald Trump’s

US stock markets slump as Trump unveils steeper-than-expected tariffs

President Donald Trump announced tariffs on Wednesday against major U.S. trading partners that were more aggressive than anticipated, sending shockwaves through global markets as investors worried the duties would stall the global economy, hit corporate earnings and stoke inflation. The market reaction was sweeping as Trump said he would impose a 10% baseline tariff on

Budget cuts by US firms to hit IT revenues in FY26

The Indian IT services sector is likely to face challenges in FY26 due to increasing regulatory and economic uncertainties linked to the policies of the US administration under the presidency of Donald Trump. Analysts believe that pauses in IT budgets by corporate clients, combined with these uncertainties, could delay the industry’s recovery. The proposed tariffs

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Why now is an opportune time to invest in bank FDs for the stability of your portfolio

The Indian equity market has been rather volatile in the last couple of months, with the benchmark indices experiencing steep declines. While the market has finally staged a remarkable rebound in March 2025 (gaining nearly 6%), it would be imprudent to be complacent and think that markets have bottomed out. The U.S. President Donald Trump’s

US stock markets slump as Trump unveils steeper-than-expected tariffs

President Donald Trump announced tariffs on Wednesday against major U.S. trading partners that were more aggressive than anticipated, sending shockwaves through global markets as investors worried the duties would stall the global economy, hit corporate earnings and stoke inflation. The market reaction was sweeping as Trump said he would impose a 10% baseline tariff on

Budget cuts by US firms to hit IT revenues in FY26

The Indian IT services sector is likely to face challenges in FY26 due to increasing regulatory and economic uncertainties linked to the policies of the US administration under the presidency of Donald Trump. Analysts believe that pauses in IT budgets by corporate clients, combined with these uncertainties, could delay the industry’s recovery. The proposed tariffs

Flipkart’s marketplace arm gets Rs 3,200 crore from parent

Flipkart Internet, the marketplace arm of Walmart-owned e-commerce major Flipkart, has received Rs 3,249 crore from its parent entity based in Singapore. The board at Flipkart has issued 470,773 equity shares at an issue price of Rs 69,014.7 each on a right issue basis to raise Rs 3,249 crore from Flipkart Marketplace Private Limited (Singapore)

Value creation: From cost centres to innovation hubs

By Amit Chadha For decades, India was the nerve centre of IT services, revolutionising how businesses worldwide operate. But over the past few years, a new wave of transformation has been underway — one that redefines India’s position on the global innovation map. Engineering R&D (ER&D) is becoming the backbone of India’s growth story, driving