The shares of IT sector giant Tata Consultancy Services have declined since the quarterly results. On Thursday, too, the stock of this company of Tata Group closed down by 1.53 per cent. However, the company’s profit and revenue have increased annually in the March quarter. But, the selling started when the results did not come as expected. Even though the stock of TCS has declined, the brokerage’s confidence in this stock remains intact. Three major brokerage houses in the country have advised buying this stock. The brokerage says that the company is fully capable of facing any challenge.

The brokerage believes that even though there is a negative sentiment in the banking and financial segment, TCS will benefit from increasing demand in the IT sector in the coming days. TCS shares have given long-term investors good returns and doubled their money in 5 years. The company’s stock has lost about 10 per cent in the last year. TCS shares fell 1.53 per cent to close at Rs 3,192 on Thursday.

What is the brokerage’s view?
Brokerage house ICICI Securities has advised investors to buy TCS shares and has fixed a target price of Rs 3786. This is about 17 per cent more than Thursday’s closing price. The brokerage says that the company’s margin in the fourth quarter was unsatisfactory. The market share of the company is continuously increasing in its sector. In the coming days, when the demand will rise in the IT sector, TCS can benefit most from it.

Religare Broking has also advised investing in TCS and has given a target of Rs 3882. Regarding the current price, according to the brokerage, TCS may see a jump of 20 per cent in the coming time. The brokerage says there is strong momentum in getting the deal done. Better relationship with the company’s clients and customers is also positive.

Brokerage house Motilal Oswal has also advised investing in TCS stock with a target of Rs 3860. In terms of the current price, Motilal Oswal is expected to get a 19% return in future.