Jefferies sees valuation upside in select IT stocks despite muted growth forecast
Jefferies rate stocks including Infosys and Tata Consultancy.
· ET Stocks, Economic Times Markets
Jefferies has identified opportunities for further valuation gains in selected Indian IT stocks. While the sector experienced a sharp rally in October, growth expectations remain muted. Analysts suggest that lack of negative surprises could drive valuations higher. Infosys and TCS were noted for potential rerating, with target prices increased.
The analysis
Where the names start from: Tata Consultancy (TCS) is 25% below its 52-week high, +2.9% over three months; Infosys is 30% below its 52-week high, +2.6% over three months. A rating is set against the price on the day the note is written, so how far a stock has already run is the part of the case the headline upside leaves out.
Market context
- Brokerage calls from Jefferies, with ratings on the stocks named. The stocks: Infosys and Tata Consultancy (TCS).
- On the day, 2 of 2 are higher: Infosys leads at +3.4% and Tata Consultancy (TCS) trails at +1.0%.
- Over three months: Infosys +2.6% against IT -3.1% (5.7 points ahead); Tata Consultancy (TCS) +2.9% against IT -3.1% (6.0 points ahead).
- At least 25% below the 52-week high: Infosys (30%).
| Company | Price | Day | 1M | 3M | From 52-wk high | Volume vs 20-day | Market cap |
|---|---|---|---|---|---|---|---|
| InfosysINFY · IT | ₹1,185.00 | +3.4% | +19.2% | +2.6% | -29.9% | 0.8× | — |
| Tata Consultancy (TCS)TCS · IT | ₹2,502.60 | +1.0% | +22.0% | +2.9% | -24.7% | 0.5× | — |
IT
1M +5.2% · 3M -3.1%
Infosys, Tata Consultancy (TCS)
Prices as of 30 Oct 2026, 16:11 IST. Sector moves are the average of the stocks we track in each sector.
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