Tata Consultancy Services Ltd. share price target

TCS reported revenue of USD7.36b in 4QFY24, up 1.1% QoQ in constant
currency (CC) terms, 110bp below our estimates but in line with Bloomberg
consensus, despite ongoing demand weakness. The growth was driven by
India (up 11% QoQ/37% YoY, aided by BSNL scale up) and the UK (up 3.6%
QoQ), while North America and Continental Europe were weak.

We recommend a HOLD rating on the stock and assign a 26x P/E multiple to its FY26E earnings of Rs 163.25/share to arrive at a TP of Rs 4,250/share, implying an upside of 6% from the CMP.

The MOFS stock has materially outperformed in the last one year, and
maintained its strong run, with the share price up 12.5% in the last 1 week and
up 30% since our coverage initiation last month (Refer to our note, Perfect
vehicle to ride India’s wealth creation journey). The recent strong show by
MOFS shares was largely endorsed by the value discovery across its business
segments of Capital Markets, Asset Management, Wealth Management, and
Affordable Housing Finance in the backdrop of the current re-rating seen in
listed peers in these specific segments.