Investec has maintained its “Sell” rating on Tata Consultancy Services (TCS) while raising the target price to ₹3,620 from the previous ₹3,586. With the current market price at ₹4,227.90, this implies a downside of approximately 14.4%.
The brokerage highlighted persistent near-term uncertainty, citing client-specific issues in sectors such as life sciences and healthcare. Major clients have reduced spending on large transformational deals, affecting the company’s growth. Additionally, the manufacturing segment is seeing cutbacks in spending, primarily due to supply chain issues, while retailers have reduced discretionary spending, reflecting weaker consumer demand.
Investec further cut its FY25 EPS estimates by 4.1%, driven by a 90-basis point reduction in EBIT margin estimates.
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