Cyient DLM and TCS Under Brokerage Radar
Cyient DLM and Tata Consultancy Services are under the brokerage lens today following key updates. Analysts have maintained neutral and hold ratings on the stocks, with target price adjustments and changes to revenue estimates reflecting cautious outlooks on near-term growth visibility and the impact of one-off costs.
Macquarie’s Outlook on Cyient DLM
Macquarie has retained its Neutral rating on Cyient DLM with a target price of Rs 450. The brokerage is waiting for revenue visibility and growth to improve. Management has indicated the addition of higher quality orders, which is a positive sign. However, the underperformance of the Altek business has been characterized as a ‘hiccup’ by the management.
Macquarie has revised its revenue estimate for FY26 down by 5% and for FY27 by 3%. This revision reflects the cautious outlook on near-term growth visibility. Indian stock market news suggests that investors should keep a close eye on the company’s future updates.
JP Morgan’s Outlook on Cyient DLM
JP Morgan has also retained its Neutral rating on Cyient DLM with a price target of Rs 450. The firm expects the second half (H2) of the fiscal year to be better than the first half (H1). However, positive revenue growth is expected to only begin by Q4 FY26.
JP Morgan indicates that the third quarter (Q3) could be weak as well. The brokerage has cut its revenue estimate by 16%, mainly led by a cut in the FY26 estimate. This revision reflects the cautious outlook on near-term growth visibility. Investors can visit Sensex and Nifty levels to get the latest updates on the Indian stock market.
TCS Under Brokerage Radar
TCS is also under the brokerage radar, with JP Morgan maintaining a Hold rating with a price target of Rs 3,100. The company’s Q2 revenue was up 0.8% Quarter-on-Quarter (QoQ), which was broadly in line with expectations. However, profit missed estimates due to a Rs 1,100 crore restructuring cost.
The Ebit margin remained steady at 25.2%. Headcount fell 3% QoQ, and growth in key markets is still weak. The data center venture is seen adding limited value due to low Return on Capital Employed (ROCE), heavy capital expenditure (capex), and minimal synergy. Stock market analysis suggests that investors should consider these factors before making any investment decisions.
Estimates and Outlook
JP Morgan has cut its estimates by 1%, and Earnings Per Share (EPS) Compound Annual Growth Rate (CAGR) is seen at 4% over FY26–28. This revision reflects the cautious outlook on near-term growth visibility and the impact of one-off costs.
In conclusion, Cyient DLM and TCS are under the brokerage radar following key updates. Analysts have maintained neutral and hold ratings on the stocks, with target price adjustments and changes to revenue estimates reflecting cautious outlooks on near-term growth visibility and the impact of one-off costs. Investors should keep a close eye on the company’s future updates and consider investing in Indian stock market to make informed decisions.
