TCS Shares: Despite a strong market rally on Friday, the shares of TCS (Tata Consultancy Services) remained jittery as Q4 results failed to impress the D-street. At 9:40 am, the shares of the IT giant were trading at Rs 3,261.75 price level and remained largely range-bound on the National Stock Exchange.
During the post-earnings press conference, TCS CEO K Krithivasan said the company’s order book could have been stronger if global uncertainties tied to US President Donald Trump’s tariffs hadn’t lingered. North America remains a key market for the IT major and any shifts in the region's discretionary spending can take a toll on the overall earnings of Indian IT firms.
On a year-to-date basis, the company's shares have plummeted over 20% as Trump's tariff stance continues to keep the outlook for India's IT sector blurry.
However, the management mentioned that FY26 will be better than FY25 except for some short-term uncertainties.
Market valuation at an attractive level?
Despite lower-than-expected Q4 results, D-street analysts believe that the IT giant's share price is now trading at an attractive valuation owing to deal wins. While the demand sphere might remain challenging in the next one to two quarters due to turbulent macros, the medium-to-long-term outlook remains strong. Nuvama has revised and lowered its target price to Rs 4,050 but retains a 'Buy' call.
"TCS appears to be an attractive proposition at current levels—trading at 21x FY27—below its long-term average multiple," the brokerage firm said.
Analysts are also expecting a recovery in profits in the coming quarters, driven by the ramp-up of the record $12.2 billion order book, scaling of GenAI engagements and early signs of improvement in the BFSI segment.
"All of these factors will sustain strong medium‑term visibility. The deal pipeline remains strong and provides robust medium-term visibility. We upgrade TCS to BUY with a revised target price of Rs4,211 (vs Rs4,589 earlier) at a PE of 25x on FY27E EPS," Centrum said in a report.
