Buy or sell tcs stock: For the third quarter of the financial year 2025, it is clear from the earnings that there is pressure on the IT sector. Even if recovery is happening at very low speed. Due to this, stocks of IT companies in stock market correction have also come at a good discount. TCS has performed weakly in the last 2 to 3 years in the Largecap Segment. Due to this, this stock has weakened 23 percent in 6 months. Brokerage houses ICICI Securities and Motilal Oswal are considering the current valuation of TCS as attractive and advised to invest in stock due to healthy fundamentals.
ICICI Securities: Buy Rating
Brokerage House ICICI Securities has given a BUY rating on TCS share and has given a target price of Rs 4,280. The current price of the stock is Rs 3485, so 23 percent returns are seen possible in it. Brokerage says the recovery is sluggish, but the valuation is healthy. Brokerage says that TCS is currently trading on 24.5x’s 5 -year average -1 SD of 24.5X, TCS that TCS is currently trading on Atractive Valuation. This stock is trading at 7 % discount to Nifty IT of 14 per cent of the historical average premium of 14 per cent. The FCF yield is also looking healthy at 3.6 percent.
TCS Best in Class’s operating matrix is an industry leading company, such as the largest company in Indian IT in terms of revenue, leading operating margin (25.5%) in industry (25.5%), ROE (50%+) and 100%FCF/PAT conversion. FY26e revenue growth has been low compared to pierce, which is due to the deal with BSNL, a 3-air revenue CAGR (FY24–27E) 5% and FY26e Revenue growth is 6 percent, which is equal to the pierce except BSNL. Brokerage has valued TCS on Q3Fy26e to Q2FY27E at 28X (first 31x).
Motilal Oswal: Buy Rating
Brokerage house Motilal Oswal has given a BUY rating on TCS shares and has given a target price of Rs 4,050. The current price of the stock is Rs 3485, so 16 percent of the returns are seen possible in it. Brokerage says that TCS’s Risk Reward looks the most attractive in largecap. Brokerage says that Alamosa is trading on all 6 largecap IT companies right now. Bouquarase believes that this validation setup is in TCS Favor. While the company’s growth has been weak in the last 2 to 3 years, the stock has weakened 24 percent in the last 6 months.
Even most of this has been a low performance compared to largecap IT companies. However, growth has become uncertain in all areas, so Brokerage believes that TCS may remain in business. Also, the margin expansion can lead to better or equal earning growth than other pierce. Brokerage revised the Ebit margin for FY26 and FY27 to 25.5 per cent and 26.0 per cent to 25.7 per cent and 26.0 per cent compared to 26.0 per cent.
(Disclaimer: View or advice on the company or stock is given by brokerage house. It is not a personal view of Financial Express. Nor is it an investment advice. There are risks in the market, so take the opinion of experts before investment.)
