ICICI Securities Upgrades Tata Group Stock To Buy From Add, Sees Shares Soaring

ICICI Securities has recommended investors to buy Tata Group's large cap IT Software stock, Tata Consultancy Services Ltd (TCS) with target price of Rs 3834 apiece. Current market price of TCS is Rs 3178.95 apiece. If you buy Tata Consultancy Services share now, you can get potential return of 21%. Check details below:

TCS Share Price & Return: Last trading price of TCS is Rs 3178.95 apiece with intraday fall of 0.18%. Its 52-week high is Rs 3835.50 apiece and 52-week low is Rs 2926.00 apiece, respectively. Its market capitalisation is Rs 11,63,194.14 crore. The stock gave over 5% return in last 6-months, fell 13% in last 1-year, gave 2% return in last 2-years, and 91% return in last 3-years.

TCS Valuation: According to ICICI Securities, "We continue to value TCS at 25x FY26E EPS of Rs172 (discounted back 1-year with WACC of 12%) to arrive at our 12-month target price of Rs3,834, implying ~20% upside. Our estimates of 10% US$ revenue CAGR and 14% EPS CAGR over FY23-26E remain unchanged. We upgrade the stock to BUY (earlier: ADD) on recent correction (-9% in last one month) in the share price. TCS is currently trading at 21x/18.5x on FY25E/26E EPS.

About TCS: Tata Consultancy Services is an IT services, consulting, and business solutions organization that has been partnering with many of the world's largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive-powered, integrated portfolio of business, technology, and engineering services and solutions. A part of the Tata group, India's largest multinational business group, TCS has over 592,000 of the world's best-trained consultants in 55 countries.

Disclaimer: The stock has been picked from the brokerage report of ICICI Securities. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.