TCS: Brokerage and experts bullish after the results, target price increased by 20% from the current price, strong rise in the stock

Tata Consultancy Services Stock Price :The shares of the country’s largest IT company TCS are witnessing a strong rally today. In today’s trading, TCS strengthened by 3 percent to reach a price of Rs 4044. On Thursday, the company released the results for the June quarter, which were as per estimates. After the results, brokerage houses and experts are also looking bullish on the company’s stock. Most have increased both the rating and target price on the stock. TCS’s profit in the June quarter of financial year 2025 has increased by about 9 percent year-on-year to Rs 12,040 crore. TCS stock has increased by 6 percent this year and 24 percent in a year.

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The stock is expected to rise by 20%

Brokerage House Motilal Oswal has given a Buy rating on TCS shares and has a target price of Rs 4660. This is 20 per cent higher than Thursday’s closing price of Rs 3902. The brokerage says that given its big size, large order book and long-term order and portfolio exposure, TCS is well positioned to face the current macro environment. Due to its strong market leadership position and best category execution, the company has been able to maintain its industry-leading margins and demonstrate superior return ratios.

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Brokerage House B&K Securities has also given a Buy rating on TCS shares and has a target price of Rs 4694. This is about 20 per cent higher than yesterday’s closing price. The brokerage says that TCS is our first choice in the Tier-I IT sector with a CAGR of 7.7 per cent in revenue and 11.5 per cent in PAT in dollar terms in FY24-26E. We are looking at EBIT margins of 25.7 per cent and 25.9 per cent for FY25/26E, as against 24.2 per cent in FY24 and 24.7 per cent in 1QFY25. At the current market price, the stock is trading at a 27/25 multiple of FY25/26E EPS of Rs 142.9/156.5. To beat both growth and margins, the brokerage has upgraded FY25/26E EPS estimates by 3 per cent and 2 per cent.

In addition, domestic Brokerage House Nirmal Bang has also given Buy rating on TCS shares and has set a target price of Rs 4592 which is 17 percent more than the current price. Brokerage House ICICI Securities has given ADD rating on TCS shares and has given a target price of Rs 4330.

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Global Brokerage View on TCS

Brokerage house Jefferies has upgraded the rating on TCS to Buy and increased the target price for the stock from Rs 4030 to Rs 4615.

Brokerage house UBS has given Buy rating on TCS and has set the target price for the stock at Rs 4600.

Brokerage house Nomura has maintained Buy rating on TCS and has given a target price of Rs 4800.

Brokerage house JP Morgan has maintained overweight rating on TCS shares and has set the target at Rs 4600 per share.

Brokerage house CLSA has also maintained Buy rating on TCS shares and has given a target price of Rs 4007.

Brokerage house Citi has given Sell rating on TCS and has given target price of Rs 3645.

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How were the quarterly results?

The country’s largest IT company TCS’s profit in the June quarter of financial year 2025 has increased by 8.7 percent year-on-year to Rs 12,040 crore. In the same period a year ago, TCS’s profit was Rs 11,074 crore. However, the profit has decreased on a quarterly basis. The company has announced a dividend of Rs 10 per share to shareholders. TCS’s revenue from operations in the June quarter grew 5.4 percent year-on-year to Rs 62,613 crore. The company’s EBIT margin or operating margin narrowed to 24.7 percent for Q1, a decline of 130 basis points from 26 percent in the previous quarter.