Nomura has maintained its “Neutral” rating on Tata Consultancy Services (TCS) with a target price of ₹4,150. With the current market price at ₹4,227.90, this suggests a downside potential of approximately 1.8%.
TCS reported a modest miss in revenue for Q2 FY25, while margins saw a significant decline, primarily due to the impact of the BSNL deal, which drove growth in the quarter. The pipeline is near record-high levels, though total contract value (TCV) has moderated but remains within a comfortable range. Margins contracted due to higher third-party expenses, prompting Nomura to reduce its FY25-26 EPS estimates by 1.6% to 2.4%.
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