3 Tata Group Stocks To Buy Next Week For Good Potential Upside

Investors considering purchasing Tata Group shares should be informed that top Indian brokerage firms have given buy calls to Voltas (India), Tata Consultancy Services, and Tata Consumer Products. Target prices have been established by Motilal Oswal at Rs 1,110 for Tata Consumer Products, Sharekhan at Rs 4,200 for TCS, and Nirmal Bang at Rs 880 for Voltas shares.

Tata Consumer Products

"TATACONS is following a two-pronged growth approach: 1) focusing on new growth engines such as Tata Sampann, NourishCo, Tata Soulfull and the ready to-eat/ready-to-consume business (Tata Smartfoodz); and 2) rapidly scaling up its distribution network along with digitization prowess across the supply chain, which will drive the next leg of growth. We expect a revenue/EBITDA/PAT CAGR of 10%/15%/22% over FY23-26 and arrive at our SoTP-based TP of INR1,110. We reiterate our BUY rating," said the brokerage firm Motilal Oswal.

Voltas (India)

The equity research analysts of Nirmal Bang said, "We hosted Mr. Manish Desai - Head of Corporate Finance (CF) & Mr. Vaibhv Vora - Manager of CF. They highlighted that the RAC industry is expected to grow by ~15% (value terms) in FY24 and Voltas is expected to beat the industry besides gaining market share of ~50-80bps (unlike previous trend of 150-200bps) due to higher competitive intensity. "

On the valuation front, the brokerage said, "Volt Beko is expected to breakeven at EBITDA level by FY25. Market share for Volt Beko (Ref + WM) is expected to be 10% by FY28. We maintain ACCUMULATE with a SOTP-based TP of Rs880, valuing it on Sept. 2025E EPS. While we remain positive about UCP business over the medium term, continued losses in EMPS pose risk in the near term and could continue to suppress overall margins."

Tata Consultancy Services

"Owing to multiple global headwinds, the outlook for FY24E looks uncertain, and the recovery could be gradual in the coming quarters. Hence, concerns relating to macroeconomic headwinds are unlikely to abate anytime soon thus restricting any material outperformance for Indian IT companies. Being one of the largest IT services companies worldwide and having preferred partners as clients, TCS can capture a fair share of spends on digital and Cloud transformation initiatives and is well-positioned to participate in clients' transformation journeys. Further, the company is well-placed from a competitive perspective, especially in newer technologies," said the brokerage firm Sharekhan.

"A stable management, full-service capabilities, the ability to structure large multi-service deals and multi-horizon transformation demand would help TCS to deliver strong revenue growth in the next three years. The management intends to keep the payout ratio at 80-100% of free cash generated. Despite the challenging macro environment, the recent large deal wins and robust orderbook provides decent revenue visibility for the quarters ahead. We expect 8.4%/10.9% Sales and PAT CAGR over FY23-26E. We believe the company with its strong domain expertise, geographical presence, ability to cross sell makes it well placed to win large cost optimisation and transformational deals and tide over the uncertain macro environment. Hence, we maintain Buy rating on TCS with an unchanged PT of Rs. 4,200," said the brokerage added in a note.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.