New Delhi. Indian IT giant Tata Consultancy Services (TCS) is now starting a new and exciting chapter of its growth journey. After the recently concluded ‘Analyst Day’, it has become clear that the future of the company will now be built around ‘Artificial Intelligence’ (AI). The vision and strategy of the management has impressed the market leaders so much that 5 big brokerage houses have advised to invest money in this stock and returns of up to 35% have been expected.
TCS has indicated that it will not be limited to just traditional IT services, but is taking steps towards becoming the world’s largest ‘AI-first’ tech services company. The company says that it is not only earning money from AI, but is also spending $1 billion on training and skilling to modernize its workforce.
Motilal Oswal estimates that the price will go up to ₹ 4,400
Motilal Oswal has given a target of Rs 4400 to the company’s shares. This is 35% more than the current level of TCS share at ₹3,269. That means the brokerage expects a strong rise in this stock. The brokerage says that for the first time the company has disclosed the earnings from AI, which is quite encouraging. Management is now more aggressive than ever with partnerships and strategic acquisitions. Although the target of 26-28% margin is challenging, the demand for AI may make it possible.
PL Capital’s view on TCS
PL Capital has given the target price of TCS share at ₹ 3,800. According to the brokerage’s analysis, TCS is already earning around $1.5 billion annually from AI services. The influence of AI is increasing in banking and business process management (BPM). The company is moving beyond the “human-in-the-loop” model to fully autonomous AI systems.
Nuvama Institutional Equities also bullish on TCS
Nuvama has also advised to buy TCS shares. Brokerage has given its target price at Rs 3650. The brokerage has said that many companies around the world are still running on old technology (Legacy Systems). AI will become a major means of bringing these old companies to cloud and modern technology. TCS has a clear roadmap to lead this change. Nuvama has considered it as a great performing stock.
Antique Stock Broking has fixed the target price of TCS share at Rs 3575. According to the brokerage, TCS is now changing its identity from a digital company to an ‘AI-powered’ global leader. Axis Direct says that TCS is now moving beyond making data reports and working on AI systems that can take ‘cognitive decisions’. The company is making a strong hold in data center, salesforce services and India-specific data center projects. Axis Direct has fixed the target price of TCS share at Rs 3,565.
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