Motilal Oswal Reiterates Buy On Large Cap Tata Group Stock, Sees 19% Upside Potential

Motilal Oswal has a Buy on the stock of Tata Consultancy Services Ltd. (TCS), a Tata Group's IT Services stock. The brokerage estimated a target price of Rs. 3,860 apiece on the stock, claiming a potential upside of up to 19% from its current level.

Motilal Oswal stated that the analysis of TCS AR23 not only highlights the widespread adoption of digital technologies in customer-facing operations, but also the increasing penetration of AI and automation in middle and back-office operations.

Valuation and view

According to Motilal Oswal, "Given TCS's size, order book and exposure to long duration orders and portfolio, it is well positioned to withstand the weakening macro environment and ride on the anticipated industry growth. Owing to its steadfast market leadership position and best-in-class execution, the company has been able to maintain its industry-leading margin and demonstrate superior return ratios. "We maintain our positive stance on TCS. Our TP of INR 3,860 implies 25x FY25E EPS, with a 20% upside potential. We reiterate our BUY rating," the brokerage has said.

Stock Outlook

On Monday, the share price of TCS closed 1.17% higher at Rs. 3,246.90 apiece on NSE. The stock gave 11.28% negative return in the past 1 week. In 1 year, it gave 3.36% negative return. It has given 59.2% positive return in 3 years and 82.31% in 5 years, respectively.

The stock traded the 52-week high on 16 February 2023 at Rs. 3,575 apiece and 52-week low on 26 September 2022 at Rs. 2,926.10 apiece, respectively. It has a market capitalisation of Rs. 11,88,057 crore.

Disclaimer - This IT stock has been picked from the report of Motilal Oswal Financial Services 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 consult with certified experts before making any investment decision.