Analysts have revised their price target for Tata Consultancy Services downward from ₹3,620 to ₹3,510, citing adjustments in discount rates and future earnings multiples. This comes despite slightly improved growth and margin projections.
What's in the News
- The Board of Directors approved the creation of a wholly owned subsidiary in India to establish multiple AI and Sovereign Data Centers for infrastructure and technology-enabled services (Tata Consultancy Services Limited, Board Meeting Minutes).
- Resulticks expanded its partnership with Tata Consultancy Services, with TCS leading the onboarding of 250 agencies and over 2,500 brands onto the RESUL platform. This will accelerate deployment of AI-powered, omnichannel engagement solutions (Key Developments).
- Tata Consultancy Services partnered with NOW Corporation's NOW Telecom to support national digital sovereignty and financial inclusion in the Philippines by deploying sovereign cloud technology and a cyber-defense suite (Key Developments).
- A Board Meeting was held to consider and approve audited financial results for the quarter and six-month period ending September 30, 2025, and to discuss the declaration of a second interim dividend (Tata Consultancy Services Limited, Board Meeting Agenda).
Valuation Changes
- The Fair Value Estimate has decreased from ₹3,620 to ₹3,510, reflecting a modest downward revision.
- The Discount Rate has risen slightly from 15.96% to 16.02%.
- The Revenue Growth Projection has increased marginally from 5.82% to 5.90%.
- The Net Profit Margin forecast has improved slightly, moving from 19.89% to 19.94%.
- The Future P/E Multiple has declined from 33.82x to 32.48x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.