Infosys, TCS, Tata Tech, TechM, Coforge: Target prices as Singapore investors flag AI risks

As the Nifty IT index corrected 19 per cent and underperformed the Nifty by 6 percentage points in 2026 so far, investors in Singapore, said JM Financial, are focused on revenue guidance by Indian IT firms amid AI-led disruption and the ongoing West Asia crisis, along with order book strength and near-term earnings visibility.

JM Financial said its recent discussions with investors centred on growth and valuations of the Indian IT sector versus global peers, the potential fallout of the geopolitical crisis, and the relative positioning of large-tier versus mid-tier IT companies. 

The brokerage said investors showed interest in Infosys and HCL Technologies, Ltd particularly on FY27 revenue and margin guidance. Conversations also covered Tech Mahindra Ltd, Tata Consultancy Services Ltd (TCS) and Wipro Ltd, including potential buybacks, it said. 

JM Financial said it has Infosys Ltd and Mphasis Ltd as its top picks, while highlighting pair ideas of Infosys versus HCL Tech and Mphasis versus LTIMindtree.

"A key debate remains whether the sector could see further valuation de-rating, particularly in light of the global IT valuations. Domestic flows will be an important factor to monitor in our view," JM Financial said.

While Accenture has not considered a significant escalation, or the occurrence of major economic disruption related to the West Asia crisis on its revenue guidance, Singapore investors are keen to understand how Indian IT companies will incorporate potential risks in their commentary and outlook, JM said.

Target prices for IT stocks

JM Financial has 'Add' rating on TCS (Target price: Rs 2,660), HCL Tech (Rs 1,440), TechM (Rs 1,550), Coforge (Rs 1,300), Persistent Systems (Rs 5,595) and Hexaware (Rs 490). It suggested 'Buy' on Infosys (Target price: Rs 1,525), Mphasis (Rs 2,695) and KPIT Tech (Rs 860). The brokerage suggested 'Reduce' on Wipro (Target price: Rs 200),  LTIMindtree (Rs 4,285), Tata Tech (Rs 560).

Infosys
JM Financial said Infosys was the most discussed stock with investors primarily seeking clarity on its FY27 revenue guidance. Given its relatively soft fourth-quarter performance over the past few years, most investors remain concerned.

TCS
The domestic brokerage said sentiment on TCS was mixed. There are concerns regarding its near-term performance, and the stock remains a consensus underweight among investors.

Tech Mahindra, Wipro
Tech Mahindra, JM Financial said, emerged as a preferred pick, largely driven by visibility
on margin expansion. In contrast, Wipro was among the least favoured, despite expectations of
a potential buyback, due to anticipated weak performance.

HCL Tech
Most investors expect HCL Tech to deliver a stable quarter and revenue guidance; however, concerns persist around margin outlook.

Coforge, Persistent Systems
JM said Coforge remained a favoured name supported by its valuation discount relative to Persistent Systems, despite a similar growth profile going forward.

Mphasis
While JM remained constructive on Mphasis in the mid-tier space, investor interest has been limited due to concerns around its order book and potential private equity stake sale in the future.

KPIT, Tata Tech, Tata Elxsi
Engineering R&D names received relatively limited attention. Among those discussed, investor focus was primarily on KPIT Technologies, Tata Technologies and Tata Elxsi, JM said.