Tata Tech Share Price Target: Goldman Sachs sees 20% downside, Nirmal Bang maintains HOLD after 8% Q4 profit growth – Markets

Tata Tech Share Price Target: Goldman Sachs sees 20% downside, Nirmal Bang maintains HOLD after 8% Q4 profit growth - Markets


Tata Tech Share Price Target: Tata Technologies, part of the Tata Group, has received mixed analyst commentary from brokerage firms such as Goldman Sachs and Nirmal Bang following its Q4 results on Tuesday (May 5).

The company reported a consolidated net profit of Rs 204 crore for the March quarter, compared to Rs 189 crore in the same period last year, marking an 8 per cent year-on-year growth. (Tata Tech Q4 Result)

Despite the steady earnings performance, brokerage views on the stock remain divergent. While one firm sees potential upside of over 10 per cent, another has flagged possible downside risk, leading to a mixed outlook on the share price trajectory.

Here’s what the brokerages have to say about the IT-enabled services company:

Goldman Sachs sees 20% downside

Following the company’s Q4 results, Goldman Sachs raised its FY27 and FY29 EPS estimates by 10 per cent and 6 per cent, respectively, and revised its target price to Rs 470 from Rs 450. The revised price target reflects a downside potential of up to 20 per cent.

According to the brokerage, Tata Technologies’ Q4 results were largely in line with estimates. Additionally, management has maintained its guidance for double-digit organic revenue growth in FY27 and introduced an EBITDA margin target of 18 per cent for FY27, up from 15.7 per cent in FY26.

Goldman Sachs expects margins to improve further, driven by better utilisation levels and efficiencies supported by AI adoption.

It also noted that the ongoing Middle East conflict is unlikely to significantly affect auto OEM capital expenditure plans.

Nirmal Bang maintains HOLD

Nirmal Bang has maintained a HOLD rating on Tata Technologies, with a target price of Rs 665, implying an upside of around 12.5 per cent from the current market price.

The brokerage expects the company to deliver double-digit organic growth in FY27, supported by broad-based business improvement.

It highlighted that Tata Technologies reported a strong Q4FY26 performance, with revenue, margins, and order book showing healthy momentum. Revenue stood at USD 171 million, exceeding both Nirmal Bang and consensus estimates.

Growth was driven by deal ramp-ups, normalisation of the JLR account, and improved deal velocity across automotive OEM clients. The ES-Tech acquisition also contributed.

However, EBIT margin came in at 13.1 per cent, below estimates due to higher subcontractor costs. For FY27, the company expects margin improvement toward ~18% EBITDA, driven by operating leverage, a better mix, an offshore shift, AI-led efficiencies, and BMW JV contributions, it added.

Brokerage Target Price (Rs) Upside/Downside %
Goldman Sachs 470 -20%
Nirmal Bang 665 (HOLD) 12.5%

Tata Technologies Share Price

The share price of the BSE 500 stock settled 1.7 per cent higher, up Rs 9.95 at Rs 591.30 in the previous session on the BSE. Additionally, the company enjoys a market capitalisation of Rs 24,009.84 crore as of May 4.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)



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