TCS Share Price Slumps 14% in February: Is it a Buying Opportunity?

TCS Share Price Drops 14% in February Amid AI-Related Concerns

Tata Consultancy Services (TCS), one of the largest IT service providers, has seen its share price decline by over 14% in February so far. The stock dropped by 1% in intraday trade on Monday, February 23, despite positive market sentiment.

Key Performances

• Consolidated profit for the December quarter fell by nearly 14% year-on-year (YoY) to ₹10,657 crore.
• Revenue from operations for the quarter rose by nearly 5% YoY to ₹67,087 crore.
• Annualised AI services revenue stood at $1.8 billion, rising 17.3% QoQ in constant currency.

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Analyst Views

• Nandish Shah, AVP-PCG Research and Advisory, Motilal Oswal Financial Services, has a buy recommendation with a target price of ₹4,400.
• Shah expects USD revenue and EPS to compound at nearly 3.6% and nearly 7.6%, respectively, over FY25–28.
• Vinit Bolinjkar, head of research at Ventura, has a hold view on the stock with a target price of ₹3,250.
• Bolinjkar pointed out that the stock is trading near its 52-week low, offering a strong "yield cushion" with recent special dividends.

Technical Analysis

• Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, recommends waiting for the stock to close above ₹2,800 for initiating fresh buys.
• Patel underscored that the ₹2,600–2,800 range is a critical demand area, and momentum indicators are currently in the oversold zone.

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