Kotak Rings AI Alarm, Slashes Target Prices Up To 28% for TCS, Infosys & Other IT Majors

In a recent analysis, Kotak Institutional Equities has significantly adjusted its target prices for major Indian IT companies, including Tata Consultancy Services (TCS) and Infosys, with cuts reaching as high as 28%. The report suggests that the sector is facing challenges, prompting the brokerage to reassess its valuations. Despite the downward revision, Kotak maintains a favorable outlook on TCS, Infosys, and Tech Mahindra, highlighting their reasonable valuations and robust cash generation capabilities. In the mid-tier IT space, Kotak shows preference for companies like Coforge and Hexaware, indicating potential for growth amidst the sector's current headwinds. This strategic shift reflects broader market trends and economic factors influencing the technology sector in India, as investors remain cautious about the performance of IT stocks moving forward.