Brokerage View: JPMorgan, Citi On TCS, Jefferies On Bandhan Bank And More

Tata Consultancy Services Ltd. will be the most watched stock by traders after the IT major reported its second-quarter earnings. Bandhan Bank Ltd. will be on radar as Jefferies sees an upside of 27% in its stock price.

TCS's profit fell in the second quarter of fiscal 2025, missing estimates, even as its revenue rose during the period. Profit of the IT major was down 1.1% at Rs 11,909 crore in the July-September period.

NDTV Profit tracks what brokerages are putting out on stocks and sectors. Here are all the top calls from analysts you need to know about on Friday.

Citi On TCS

The brokerage maintained 'sell', with a target price of Rs 3,935 per share, a downside of 7%.
Ebit was 4% below estimates.
Expects modest and gradual recovery, forward indicators looking weak.
Margin levers are close to optimal, it said. The brokerage expects cost pressures going forward.
Citi lowered earnings per share estimates by 2%, well below street estimates.
Prefers Infosys Ltd. over TCS.

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JPMorgan On TCS

The brokerage maintained 'overweight' with a target price of Rs 5,100 per share from Rs 5,100 apiece, an upside of 21% from the previous close.
International business weakest since Covid-19.
All growth led by sharp margin dilutive BSNL contract.
Falling revenue was the result of several clients cancelling discretionary projects simultaneously.
Sees gradual recovery across US BFS and UK Banking.
Pointed out that lengthening sales cycles and signings were unimpressive.
Fears lack of broad-based recovery.
Trimmed margin estimates and earnings by 50 basis points and 2% respectively for fiscal 2025.
Use any sharp correction to add, the brokerage said.

HSBC On TCS

Maintained a 'buy' rating, with a target price of Rs 4,540 per share, implying an upside of 6.7% from the previous close.
Second quarter reflected painful slow demand recovery.
Demand for discretionary projects remains weak.
Margins were a rare miss.
Second-quarter performance and mediocre medium term outlook led to minor cuts in estimates.
TCS is best managed in the sector hence maintain 'buy', the brokerage said.
The sector is likely to grow mid single digits in the next two to three years.

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Jefferies On Bandhan Bank

Jefferies maintained a 'buy' with a target price of Rs 240 per share, which indicates an upside of 27% from the previous close.
The new chief executive officer comes with a strong background.
Recovery from credit guarantees adds to credibility.
Asset quality is expected to behave better than other microfinance institutions.
Expects a 15% return on equity in the business.
Valuations look attractive at 1.1 times the financial year 2026 price-to-book value.

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