Tata Stocks to Watch: These 4 stocks of Tata Group came on the radar of brokerage, given earning target after quarterly results – Market

Nuvama has given a target of ₹2,000 while maintaining BUY rating on Tata Communications. According to the brokerage, the company’s revenue in Q4 grew by 5.9% QoQ and 9.4% YoY, which was better than estimates. Although PAT was slightly weak, digital business (19% YoY growth) and data revenues (11.5% YoY) remained strong. International order pipeline and digital growth are considered to be big triggers in the outlook.

Elara Capital has maintained SELL call on Tata Elxsi and raised the target to ₹3,800, which was earlier ₹3,930. The brokerage believes that the company’s growth may now be limited to high single digits. Weakness in the auto and healthcare segments and delays in projects are a matter of concern. Margins are stable, but lack of revenue growth makes the outlook weak.

Morgan Stanley also underweight on Tata Elxsi

Morgan Stanley has reduced the target from ₹ 5,350 to ₹ 4,200 while maintaining Underweight rating on Tata Elxsi. Both revenue and EPS were weaker than estimates in Q4. The brokerage has cut EPS estimates for FY27 and FY28. He says recovery will take time and the risk-reward does not look attractive at current valuations.

Morgan Stanley has given a target of ₹ 2,880 while maintaining Overweight rating on TCS. The brokerage believes 4% revenue growth is possible in FY27, which is better than peers. The stock has a valuation discount due to FY26 underperformance, which may go lower further. Strong deal pipeline and stable demand can support the company.

Nuvama has given a target of ₹4,828 while maintaining HOLD rating on Trent (earlier ₹4,543). Margins remained strong in Q4, but raw material costs and supplier issues could create further pressure. The company’s ₹25,000 crore fundraise plan is for expansion, but demand may remain a bit subdued in the near term.

Bernstein sees long-term growth in Trent

Bernstein has set a target of ₹5,000 on Trent with OUTPERFORM rating. The brokerage says 20% revenue growth and strong store expansion (Zudio, Westside) are positive for the company. Margins have also shown improvement. However, there remains some concern on capital allocation and grocery business (Star Bazaar).

HDFC Securities downgrades Trent

HDFC Securities has downgraded Trent to ADD and target to ₹4,500. According to the brokerage, the company’s growth is strong, but after the recent rally, the upside seems limited. Caution and macro uncertainty in consumer demand also remain risks.

Elara Capital’s ACCUMULATE call on Trent

Elara Capital has given ACCUMULATE rating and target of ₹4,800 on Trent. The brokerage says growth will be sustained due to store expansion and operating leverage. Expansion into Tier 2-3 cities is a big opportunity for the company, although inflationary pressure remains.

Morgan Stanley also overweight on Trent

Morgan Stanley has maintained a target of ₹4,835 on Trent with an Overweight rating. Margins were better than expected in Q4 and LFL growth showed improvement. The brokerage believes that the fundraise and expansion plan will support the long-term growth of the company.

Goldman Sachs neutral opinion

Goldman Sachs has raised the target to ₹ 4,330 (earlier ₹ 4,150) while keeping a neutral rating on Trent. Margins remained good in Q4, but there remains a risk of demand softening and input costs increasing. Valuations are already high, so there appears to be limited upside.

Disclaimer: Advice regarding shares has been given by the brokerage house. These are not the personal views of ET NOW Swadesh. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.