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Jefferies cuts TCS target to ₹1,800, citing AI and growth risks
Jefferies cut TCS’s target to Rs 1,800, citing AI-driven pricing and revenue risks, weak order-book visibility and falling cash conversion. As a Tata group company, TCS’s capital allocation and leadership outlook are relevant to the conglomerate’s Indian consumer and retail ecosystem.
Reported figures
From the report. Source details below
| Jefferies target price cut to Rs 1,800 from | Rs 2,275 |
|---|---|
| Revised target implies 23% downside from | Rs 2,339 closing price |
| Third Jefferies target cut in | 2026 |
| Expected constant-currency revenue and EPS CAGR: | 4%-5% for FY26-29 |
| Revenue growth estimate: | 3.9% for FY26-29E |
| Headcount declined | 3% year-on-year |
| TCS trades at about 30% premium to Accenture versus 10-year average | 1% |
| Jefferies valuation basis: | 11x P/E |
| BofA target price: | Rs 2,365 |
| TCS CEO K Krithivasan's tenure runs until May | 2028 |
Also in the report
- June-quarter order book flat year-on-year
- Free-cash-flow-to-PAT ratio fell from 117% in FY21 to 84% in FY26
- TCS underperformed Nifty by over 55% in past three years
The source
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