Why Are Brokerages Turning Bullish on TCS and Vishal Mega Mart for FY26?
About the Reports and Key Brokerage Highlights
Tata Consultancy Services (TCS) and Vishal Mega Mart (VMM) have recently caught the attention of leading brokerages with bullish ratings. AUM Capital reaffirmed its Buy view on TCS, citing its continued innovation in semiconductor systems, while Emkay Global initiated coverage on Vishal Mega Mart with a Buy rating, highlighting the company’s scale-up potential and value-driven retail positioning.
TCS: Building the 'Perpetually Adaptive Enterprise'
Tata Consultancy Services (TCS) has demonstrated a strong long-term vision by helping global clients remain agile and resilient amid rapid technological change. The company’s new Chipset-based System Engineering Services aim to assist semiconductor firms in pushing design boundaries — a move that positions TCS firmly within the semiconductor demand cycle.
As a market leader in the IT domain, TCS continues to benefit from a broad client base, a strong balance sheet, and consistent shareholder rewards through dividends and buybacks. Its order book visibility remains robust, with a total contract value (TCV) of $9.4 billion in Q1-FY26, spread across verticals and geographies.
According to AUM Capital, TCS management’s disciplined approach to R&D investment and client diversification offers medium-term visibility. The firm recommends a Buy on TCS with a target price of ₹3,582, valuing the stock at 24x FY27E EPS of ₹149.24.
As markets adapt to evolving geopolitical and digital challenges, AUM Capital’s view reinforces confidence in TCS as a stable compounder for the coming fiscal cycle.
Our in-house strategist, Gulshan Khera, CFP® — a SEBI Registered Investment Adviser and Derivatives Pro Tiger at Indian-Share-Tips.com — observes that TCS’s consistent innovation in chip design and enterprise transformation could make it a long-term value creator in India’s IT landscape. USA tariff problem and H1b Visa issues will get resolved.
Vishal Mega Mart: Fast-Growing Value Retailer With Expansion Tailwinds
Emkay Global has initiated coverage on Vishal Mega Mart (VMM) with a Buy rating and a target price of ₹180 (65x P/E for Sep-26E). The brokerage notes that VMM is driving significant growth from the unorganised retail segment by offering high-value private brands and competitive price points — often 30–40% lower than branded peers.
VMM has scaled its retail footprint nearly fourfold since FY17–25, supported by strong same-store sales growth (SSG) in the 12–14% range and leading return on invested capital (ROIC), roughly twice the industry average.
With a large total addressable market (TAM) estimated at $430 billion, VMM has room for 5–7x growth in revenue/EBITDA over the next decade. Emkay projects 20–26% CAGR in revenue and EBITDA for FY25–28E, as store expansion and throughput gains continue to drive margin improvement.
For retail investors, the strong balance sheet and brand-driven strategy make VMM an interesting consumer play aligned with India’s rising consumption trends.
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Key Risks: For VMM, execution delays and TAM underperformance remain primary concerns, while for TCS, slower discretionary IT spending in global markets could affect short-term earnings growth.
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Investor Takeaway
Both TCS and Vishal Mega Mart represent structurally strong stories driven by long-term visibility and execution strength. TCS leads the technology transformation race through innovation in chip systems, while VMM is rapidly scaling value retail with robust profitability metrics.
Explore more insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
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. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
Related Queries
- What makes TCS’s Chipset-based services a key differentiator in semiconductor engineering?
- How is Vishal Mega Mart sustaining its growth amid rising competition in India’s retail sector?
