Analysts at top brokerage firms trimmed or retained their price targets on TCS after the software services exporter posted weaker-than-expected second-quarter earnings. The stock fell 1.9% to `3,542 on Thursday in response to the results. Infosys shares dropped 2%, Tech Mahindra declined 2.7%, and HCL Tech fell 1.7%. ET looks at the brokerage commentary on TCS:
KOTAK
Near-term outlook weak and disappointing but does not dent hopes for a better FY25
Stock at premium valuations; justified but limits significant near-term upside
JEFFERIES
TCS’ Q2 does not inspire confidence about demand recovery
Premium valuation of 27 times P/E ratio limits upside
MORGAN STANLEY
Revenue downgrade cycle, recent stock outperformance and premium valuations make risk-reward less favourable.
Consensus EPS to drop; weak revenue commentary to weigh on P/E multiples
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