TCS at new high on retaining FY15 outlook; analysts bullish

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26 Aug, 2025 12:21

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Shares of TCS hit record high at Rs 2667 per share, up over 1 percent intraday on Tuesday on management’s confidence to retain its FY15 bullish outlook. In its analysts meet, the company has maintained that FY15 will be a better growth year than last fiscal with 1HFY15 growing faster than 2HFY15.

TCS has retained its medium-term margin target of 26-28 percent. The IT major also feels that Indian business to report growth in July to September quarter and Japan JV to contribute USD 100 million in Q2. Japan JV contribution is seen at lower end of guided range of USD 300-375 million.

However, the management feels there may be an impact of 80 basis points on dollar revenue growth due to cross currency. 

This has got analysts excited about the prospects of the Chandrasekaran-led company. Most brokerages recommend buying the stock.

Credit Suisse maintains outperfom rating on the company stating that it is well placed to top the growth in FY15 among the top-6 Indian IT firms.

"The absence of currency depreciation and the completion of wage increases in Q1 should help margins slightly in Q2. Post the dividend pay-out of Rs 15000 crore , other income may decline by Rs 300 crore.  Besides minor concerns around the insurance vertical and uncertainty on the India business, the overall trend remains positive," it says in a report.

Retaining a buy rating, Goldman Sachs forecasts sector-leading USD revenue/EPS CAGR of 20 percent/18 percent over FY14-FY16E.

Barclays has an overweight rating with a price target of Rs 2730, indicating a 3 percent upside.

Ambit suggests to buy with a target price of Rs 2900. The brokerage feels valuations are justified given its superior competitive advantages, even though  it is at 23x 1–year forward earnings. It sees revenue (USD) CAGR of 17 percent and EPS CAGR of 14 percent over FY14-16.

At 12:17 hrs, the stock was at Rs 2,631.00, down Rs 5.05, or 0.19 percent on the BSE.

Posted by Nasrin Sultana