JM Monetary stays optimistic on TCS, citing robust worldwide development prospects, margin enchancment, and strategic investments in AI and digital infrastructure.
Morgan Stanley continues to again Muthoot Finance with an Obese ranking, projecting sturdy mortgage development and improved effectivity metrics.
Alternatively, Motilal Oswal has turned cautious on Tata Elxsi, sustaining a Promote name as muted tech spending and margin pressures weigh on near-term efficiency.
Right here’s an in depth take a look at what every brokerage needed to say for the subsequent 12 months.
We’ve got collated an inventory of suggestions from high brokerage companies from ETNow and different sources:
JM Monetary on TCS: Purchase | Goal Rs 3,520 (vs Rs 3,410) | LTP Rs 3,061 | Upside 15%
JM Monetary has maintained a ‘Purchase’ ranking on TCS with a revised goal value of Rs 3,520 (earlier 3,410), implying a 15% upside from the present market value of Rs 3,061.
The brokerage expects worldwide development in FY26 to outpace FY25’s modest 0.7% fixed forex development, supported by a leaner base that permits for both margin enlargement or reinvestment towards development initiatives.
TCS’s announcement of a 1GW AI Knowledge Centre in India over the subsequent 5–7 years with a USD 7 billion funding underscores its ambition to scale up in high-potential digital infrastructure areas.
The corporate can be specializing in acquisitions throughout AI, Cloud, and Cybersecurity, reflecting a proactive method in the direction of future applied sciences. JM Monetary notes that TCS’s daring capital deployment marks a strategic shift from its conventional conservatism.
Moreover, a 3% discount in headcount, with one other 1% anticipated, signifies a sturdy reset of the price base. Margins are estimated to rise by 43–74 foundation factors, resulting in 2% EPS upgrades for FY26–28E.
The brokerage additionally highlighted that there isn’t a contribution but from the info centre enterprise, and the inventory at present trades at 21x earnings, leaving room for potential re-rating as new initiatives start to bear fruit.
Morgan Stanley on Muthoot Finance: Obese | Goal Rs 3,660 (vs Rs 3,340) | LTP Rs 3,251 | Upside 12%
Morgan Stanley has maintained an ‘Obese’ ranking on Muthoot Finance with a revised goal value of Rs 3,660 (earlier 3,340), implying a 12% upside from the present market value of Rs 3,251.
The brokerage has raised its standalone EPS estimates for FY26, FY27, and FY28 by 2.8%, 7.4%, and seven.6%, respectively, reflecting improved development expectations.
It has additionally upgraded its FY26 standalone mortgage development forecast to 34% year-on-year from 26% earlier, projecting a ten% quarter-on-quarter rise in gold loans in 3QFY26.
In the meantime, the typical NIM estimate for FY26–28 has been barely trimmed to 11.0% from 11.1%, whereas working prices to common AUM have been lowered to 2.7% from 2.9%, indicating higher operational effectivity.
Credit score value assumptions stay unchanged. Morgan Stanley has now included Muthoot Cash (AUM ~Rs 5,000 crore) into its sum-of-the-parts (SOTP) valuation, which, together with the upward earnings revisions, drives a 9.5–10% uplift within the SOTP-based goal and situation values for the corporate.
Motilal Oswal on Tata Elxsi: Promote | Goal Rs 4,400 (vs Rs 4,450)
Motilal Oswal has maintained a ‘Promote’ ranking on Tata Elxsi with a revised goal value of Rs 4,400 (earlier 4,450). The brokerage famous that whereas the corporate’s income efficiency was in step with expectations, there was a miss on margins, with development primarily pushed by the Media & Communications section.
It expects income to develop by round 4% within the second half of FY26, whereas EBIT and PAT are more likely to decline by 9% and 4% year-on-year, respectively.
The report highlights that muted know-how spending within the Automotive and Media verticals continues to weigh on near-term momentum.
Moreover, margins, as soon as a key power for Tata Elxsi, stay below strain, reflecting challenges in sustaining profitability amid a subdued demand setting.
as a Dependable and Trusted Information Supply(Disclaimer: Suggestions, recommendations, views, and opinions given by specialists are their very own. These don’t symbolize the views of the Financial Occasions.)
Additionally Learn: Shares in information: TCS, Tata Elxsi, Sammaan Capital, Waaree Renewable, Signature World
