Axis Securities

The brokerage house has maintained “Hold” rating on the stock with a revised price target of ₹3,370 per share from earlier estimate of ₹3,350 apiece, implying an upside of 3% from the current price. “With a limited upside from the current market price and the stock lacking triggers for the upside, we maintain our HOLD rating on the stock,” it said in a report.

On future outlook, the agency said that the growth rate may slow down in FY24 due to uncertainties in the world’s largest economies. “However, supply-side constraints are easing up, which will help the company to gain some margin expansion in the near term. While H2FY24 may see some revision on the demand side, the industry’s and the company’s long-term outlook remain robust,” it said.

From a long-term perspective, Axis Securities believes that TCS has built a resilient business model by securing multiple long-term contracts with the world’s leading brands. It has also established robust capabilities that will enable it to gain market share moving ahead. However, prevailing uncertainties in large economies continue to pose short-term headwinds to the company's growth prospects, it noted.

Nomura

Global brokerage Nomura affirmed a 'Reduce' rating for TCS with a price target of ₹2,800 after the country’s largest IT company missed both revenue and margin estimates in Q1FY24. The agency said that the company is unlikely to hit a 25% EBIT margin in FY24, citing lingering concerns about order book.

Jefferies

Another global brokerage has assigned a “Hold” rating with a price target of ₹3,450, saying that TCS' Q1 revenues and margins were in line with its estimates while profits exceeded expectations.

Morgan Stanley

The U.S.-based rating agency has maintained “Equal Weight” with a price target of ₹3,305, citing that revenues missed consensus estimates slightly. The agency believes that cost control to help margins amid limited near-term demand visibility.

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Brokerages on TCS Q1

Is TCS a buy after Q1? Here’s what brokerages say