The stock made a record high of ₹4,494 on December 13 last year, and has declined 35% since then. In fact, it is the worst performer on the Nifty IT index during this period, with HCLTech being the second worst, with a 27% fall.
The stock has also broken below its 50-Day Moving Average (DMA) of ₹3,090, and now trades below all of its key moving averages. On the charts, TCS is nearing oversold territories, with its Relative Strength Index (RSI) at levels of 32. An RSI reading below 30 means that the stock is in “oversold” territories.On August 11, JPMorgan had upgraded TCS to “overweight”, and also raised its price target of ₹3,800. Back then, the brokerage wrote that TCS is trading at a two-year forward price-to-earnings multiple of 19.7x, which is two-standard deviations below its five-year average.
JPMorgan also wrote in its note that it does not believe TCS’ business model is broken and expects growth recovery from the second half of financial year 2026.
Out of the 52 analysts that have coverage on TCS, 33 of them still have a “buy” rating on the stock, 13 say “hold” and six of them have a “sell” rating on the stock. The stock is now trading close to its second lowest price target on the street at ₹2,850 from Citi, followed by the lowest of ₹2,620 by Morningstar.
Shares of TCS are ended 2.55% lower at ₹2,958.
First Published: Sept 25, 2025 3:14 PM IS
