The shares of Teamlease Services jumped around 4 percent on December 1 after Investec issued a bullish call for the stock, stating that the company is set to benefit from the new labour laws introduced in India.
The shares of the company rose to Rs 1,713 apiece, snapping a two-session losing streak.
Investec on Teamlease Services:
Investec in its note said that India's new labour laws are set to benefit staffing firms over medium to long term. The brokerage added that the simplified compliance norms in new labour laws will help reduce administration costs for firms like Teamlease.
New labour laws will potentially boost formalisation of Indian workforce, which would expand staffing firms' net revenue, Investec added. The domestic brokerage kept a 'Buy' call on the stock, with a target price of Rs 2,230 per share. This implies an upside potential of more than 35 percent from the stock’s previous closing price.
India’s new labour codes, consolidated under the Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020 and Occupational Safety, Health and Working Conditions Code, 2020, came into effect on November 21.
Emkay on Teamlease Services:
Earlier last month, Emkay Global Financial Services upgraded the shares of 'Teamlease Services' to 'Buy' from 'Add', with a target price of Rs 2,050 apiece. This implies an upside potential of nearly 24.5 percent from the stock's previous closing price.
This came after the company reported strong results for the July-September quarter of the ongoing financial year 2026. "While BFSI headwinds persist in General Staffing, contributions from retail, e-commerce, consumer, and telecom verticals are promising. The company expects a steady recovery in H2, steered by the contribution from GCC, Degree Apprenticeship (DA), and consumerfacing sectors. The management remains confident of sustaining the EBITDA growth momentum in FY26 and expects ~25% growth, with focus on revenue growth, cost optimization, and operating leverage. We largely retain our FY26-28E EPS (<1% change), factoring in the Q2 results and anticipated recovery across segments," the brokerage said.
Motilal Oswal on Teamlease Services:
After the release of its results, Motilal Oswal Financial Services maintained its 'Buy' rating with a target price of Rs 2,000 per share. This implies an upside potential of more than 21 percent from the stock’s previous closing price.
"TeamLease’s 2QFY26 revenue growth of 8.4% YoY was below our estimate of 13% YoY growth. General Staffing (GS) grew by 4% QoQ, while Specialized Staffing grew 8% QoQ. EBITDA margin of 1.3% was in line with our expectation (1.4%). EBITDA improved by 25% QoQ. Adj. PAT at INR278m was up 12% YoY/11% QoQ. In 1HFY26, revenue/EBITDA grew 10.2%/23.7% YoY. In 2HFY26, we expect revenue/EBITDA to grow 12.4%/14.4% YoY," the domestic brokerage said.
Motilal added that general staffing showed sequential improvement in growth, adding 37 new clients during the period.
Teamlease Services share price history:
Teamlease Services shares have fallen more than 1 percent in the past five days, and nearly 14 percent in the past six months. The stock is so far down around 44 percent in 2025 so far.
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