Nuvama has reiterated a Buy rating on Tata Consultancy Services (TCS) with a revised target price of ₹5,200 (from ₹5,100), indicating a 29% upside from the current market price (CMP) of ₹4,044.
Key Insights:
- Revenue and Margins: Revenue was modest and in line with expectations, while margins saw decent expansion.
- Optimistic Management Outlook:
- Management remains upbeat on BFSI and retail sectors.
- Both sectors are expected to have bottomed out, with recovery anticipated over the next few quarters.
- Margin Targets:
- Maintains medium-term margin guidance of 26–28%.
- Aims to reach close to 26% margins by Q4FY25.
- Industry-Wide Positivity: The commentary reflects the most optimistic outlook in two years, signaling potential growth across the IT sector.
Conclusion:
TCS’s positive management commentary and strategic focus on recovery in key verticals align with its growth outlook, supported by its margin expansion targets.
Disclaimer: This information is for informational purposes only and does not constitute financial advice.
