What Are Brokerages Saying About TCS After Its Data Center Expansion?
Brokerage Ratings on TCS
| Brokerage | Rating | Target Price (₹) | Key Takeaways |
|---|---|---|---|
| Jefferies | Hold | 3,100 | Data-center entry aids diversification but limited revenue impact (~3%). |
| Morgan Stanley | Overweight | 3,066 | Core business remains strong; margins to recover FY27 amid higher volumes. |
| Citi | Buy | — | Focus remains on core transformation and steady India cloud expansion. |
Peer Comparison
| Company | P/E Ratio | ROE (%) | Debt/Equity | Revenue Growth (%) |
|---|---|---|---|---|
| TCS | 29.6x | 46.2% | 0.05 | 8% |
| Infosys | 25.8x | 32.5% | 0.07 | 7% |
| HCL Tech | 24.3x | 29.1% | 0.10 | 9% |
| Wipro | 20.7x | 18.7% | 0.15 | 5% |
Investor Takeaway
TCS remains a core holding for long-term investors, backed by consistent cash flows, digital leadership, and improving operational efficiency. Near-term margin softness from new ventures may limit upside, yet structural tailwinds from AI, data-center, and cloud remain intact. Short-term traders can align setups through Nifty Option Tip insights mirroring IT-sector momentum.
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SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions.
