Tata Consultancy Services (TCS) has seen a significant boost in its shares following the release of its Q3 results and positive outlook from various brokerages. The company reported a 5.5% increase in net profit to ₹12,380 crore for the third quarter of FY 2024-25, along with announcing a dividend of ₹76 per share, including a special dividend of ₹66.
Brokerages such as Nuvama Institutional Equities, Motilal Oswal, Nomura, Jefferies, CLSA, HSBC, and JM Financial have expressed bullish sentiments towards TCS based on strong deal wins, management commentary, and growth prospects.
Nuvama Institutional Equities stated that TCS’ Q3FY25 results were in line with its estimates and highlighted the positive management commentary, forecasting higher growth in CY25. The brokerage retained a buy call on the stock with an increased target price of ₹5,200.
Motilal Oswal sees a 24% upside potential for TCS and reiterated a buy rating with a target price of ₹5,000, citing a recovery in discretionary client spending and a strong US economy as potential growth drivers for the company.
Global brokerage Nomura maintained a neutral stance on the stock with a reduced target price of ₹4,020, while Jefferies and CLSA assigned buy ratings with target prices of ₹4,760 and ₹4,546, respectively. HSBC has a hold rating with a target price of ₹4,540, and JM Financial upgraded the stock to a buy rating with an increased target price of ₹4,680.
Despite a slightly weaker-than-expected operating performance in Q3 FY25, Emkay Global retained an ‘add’ call on the stock with a target price of ₹4,500, noting the significant growth in Gen AI, AI, and cloud services as positive indicators for TCS.
TCS shares closed 5.60% higher on the NSE at ₹4,265 and 5.67% positive on the BSE at ₹4,265.55. The Nifty IT index also gained 3.44% to 44,609.50, with other top Nifty 50 stocks such as Tech Mahindra, HCL Technologies, Infosys, and Wipro showing positive performance.
In conclusion, TCS’s Q3 results and optimistic outlook from brokerages have buoyed investor confidence in the company, making it a stock to watch in the IT sector.
