TCS muted on demand uncertainty: Jefferies lists 3 big worries

TCS is muted even as the rest of the IT pack is firm with Nifty IT up nearly 2%. In fact TCS is the only IT stock in red on Nifty after the Q4FY25 earnings missed estimates. Jefferies maintains a Hold rating on the stock with a revised price target of Rs 3,400 per share, implying just a 5% upside from current levels.

Jefferies cut the “FY26/27 EPS estimates each by 3.5% and expect an 8% EPS CAGR over FY26-28E. Whilst stock has de-rated to 22x PE and has limited derating risks, upsides are capped until the US GDP growth outlook improves.”