Analysts have slightly lowered their price target for Tata Consultancy Services, reducing the fair value estimate from ₹3,723.18 to ₹3,619.89. This change reflects updated assumptions about the company's revenue growth and discount rate.
What's in the News
- An upcoming board meeting is scheduled for October 9, 2025 to consider and approve audited financial results for the quarter and six-month period ending September 30, 2025. The meeting will also include a discussion on the declaration of the second interim dividend to equity shareholders (Board Meeting).
- Tata Consultancy Services has partnered with NOW Corporation through Now Telecom to support the development of secure digital infrastructure and services in the Philippines. The partnership will focus on digital sovereignty, financial inclusivity, and cyber-defense solutions (Client Announcements).
- The board declared an interim dividend of INR 11 per equity share on July 10, 2025. The dividend will be paid on August 4, 2025 to shareholders registered as of July 16, 2025 (Dividend Decreases).
Valuation Changes
- Fair Value Estimate: Lowered from ₹3,723.18 to ₹3,619.89. This reflects a modest decrease in the consensus analyst price target.
- Discount Rate: Increased slightly from 15.87% to 15.96%. This indicates marginally higher perceived risk or required return.
- Revenue Growth: Reduced from 5.98% to 5.82%. This suggests more conservative expectations for future sales expansion.
- Net Profit Margin: Increased slightly from 19.82% to 19.89%. This reflects a small improvement in projected profitability.
- Future P/E Ratio: Decreased from 34.69x to 33.82x. This indicates a somewhat lower valuation multiple for the company’s future earnings.
Disclaimer
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