Buy TCS; target of Rs 3950: Choice Institutional Equities

Choice Institutional Equities is bullish on TCS has recommended buy rating on the stock with a target price of Rs 3950 in its research report dated January 13, 2026.

Broker Research

January 13, 2026 / 10:41 IST

Buy

Choice Institutional Equities's report on TCS

TCS’s AI growth is being driven by rapidly expanding AI services revenue, an AI-first delivery culture, rising large-client adoption, workforce transformation and strong ecosystem partnerships, including its HyperVault AI-led data-centre JV with TPG. The company is executing two core AI programs — AI-led business transformation and AI-enabled modernisation, supporting its shift toward an outcome-based, AI-driven business model with long-term competitive advantages.

Outlook

Thus, we expect Revenue, EBIT and PAT to expand at a CAGR of 7.2%, 9.6% and 8.9%, respectively, over FY25–FY28E and maintain our BUY rating with a target price of INR 3,950, implying a 24x multiple on the average of FY27E and FY28E EPS of INR 164.6.

For all recommendations report, click here