Tata stocks to BUY, Tata stocks to SELL: The quarterly earnings season is now in full swing, with major conglomerates beginning to announce their results. Among them, the Tata Group has been in focus. Companies such as Tata Communications, Trent, Tata Elxsi, Tata Consultancy Services (TCS), along with others from the group, have already reported their performance. These updates have brought several of these stocks under increased attention from brokerages and market analysts.
Brokerages such as Morgan Stanley, Elara Capital, and others have analysed these companies and issued share price targets, indicating potential upside or downside for the stocks, along with buy, sell, or hold recommendations.
The brokerage highlights that the company’s growth guidance has been reduced due to delayed project ramp-ups and weak traction in key sectors. While margins remain stable, limited revenue growth and a slight earnings cut raise concerns about its valuation at ~27x FY28E EPS.
Echoing similar views, Morgan Stanley has maintained an ‘Underweight’ rating on the stock, meaning it is expected to underperform the market or its sector. The brokerage has set a price target of Rs 4,200, implying a downside of around 4 per cent from current levels.
Revenue growth for FY27 is expected to be around 4 per cent, outperforming peers. The past underperformance is already reflected in its valuation, and the discount is likely to narrow. Strong positioning and an improving outlook suggest a high probability of near-term outperformance.
The brokerage highlights that Q4FY26 revenue beat estimates, aided by currency tailwinds, though underlying growth remained modest.
Additionally, digital and data segments drove gains, while margins dipped slightly. Profit missed expectations due to depreciation, but strong order bookings and pipeline support future growth prospects.
Bernstein holds the most bullish stance on Trent in terms of upside, seeing a potential upside of 13.5 per cent from current levels.
