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

Sovereign Gold Bonds: How much govt owes to SGB holders for 130 tonnes gold?

When the government launched the Sovereign Gold Bond (SGB) scheme, it seemed like a great scheme. Investors got great returns, but it turned out to be a loss-making deal for the government. Due to rising gold prices, investors made profits, but a huge financial burden increased on the government. Perhaps the government took Indians’ love

Are premium credit cards worth the cost? Smart ways to maximize savings

Credit cards are popular financial tools, offering a variety of benefits to suit different needs. Many people assume that no-annual-fee cards are always better than those with an annual fee, but that’s not necessarily true. Banks often provide premium credit cards with annual fees, promising enhanced rewards, cashback, and exclusive privileges. While these cards can

Trump’s reciprocal tariff announcement soon: What are India’s options

The world is bracing up for the key reciprocal tariff announcements by US President Donald Trump. He has promised to “unveil a massive tariff plan on Liberation Day.” This is in addition to tariffs already imposed on aluminum, steel and autos, along with increased tariffs on all goods from China. The question that is relevant

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

Sovereign Gold Bonds: How much govt owes to SGB holders for 130 tonnes gold?

When the government launched the Sovereign Gold Bond (SGB) scheme, it seemed like a great scheme. Investors got great returns, but it turned out to be a loss-making deal for the government. Due to rising gold prices, investors made profits, but a huge financial burden increased on the government. Perhaps the government took Indians’ love

Are premium credit cards worth the cost? Smart ways to maximize savings

Credit cards are popular financial tools, offering a variety of benefits to suit different needs. Many people assume that no-annual-fee cards are always better than those with an annual fee, but that’s not necessarily true. Banks often provide premium credit cards with annual fees, promising enhanced rewards, cashback, and exclusive privileges. While these cards can

Trump’s reciprocal tariff announcement soon: What are India’s options

The world is bracing up for the key reciprocal tariff announcements by US President Donald Trump. He has promised to “unveil a massive tariff plan on Liberation Day.” This is in addition to tariffs already imposed on aluminum, steel and autos, along with increased tariffs on all goods from China. The question that is relevant

Reliance joins hands with BLAST for Esports business in India, to form a JV

RISE Worldwide Limited (RISE), a wholly-owned subsidiary of Reliance Industries Limited, and BLAST Esports Limited (BLAST), a wholly-owned subsidiary of BLAST ApS, on Wednesday announced an agreement to form a joint venture to conduct esports business in India, the company said in a release.  The strategic partnership will form a new JV entity and it

Trent shares surge 13% in 30 days: 3 reasons why Goldman Sachs sees it as long-term Buy

Trent’s share price is gaining steady ground and hit an intra-day high of Rs 5,670 after a rating upgrade from global brokerage house Goldman Sachs. The brokerage house has a Buy call on the fashion retail company from Tata Group, Trent. It has a target price of Rs 8,120 per equity share, an upside of