HSBC has maintained its “Buy” rating on Tata Consultancy Services (TCS) with a target price of ₹4,540. With the current market price at ₹4,227.90, this implies an upside potential of approximately 7.4%.
TCS’s Q2 results showed a painfully slow demand recovery, with the company attributing part of the slowdown to client-specific issues. Sequential revenue growth was minimal, excluding pass-through costs, which also contributed to a rare decline in margins for TCS.
Despite these challenges, HSBC finds TCS to be the best-managed company in the sector, reinforcing its relative preference for the stock.
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