IT stocks to ‘Buy’ amid AI push: Infosys, TCS among nine names – Check target prices

According to the latest thematic cross-sector research report by brokerage firm PL Capital, a multi-year infrastructure buildout supported by artificial intelligence (AI) and cloud adoption is widening the total market for local IT players.

Out of the 16 stocks currently within its analytical coverage universe, PL Capital has placed a 'Buy' call on nine stocks that are strongly positioned to benefit from this expanding digital ecosystem.  

India’s data center ecosystem is undergoing a high-capacity expansion cycle. PL Capital noted that the country's domestic installed capacity is projected to expand from approximately 1,350 MW in 2025 to around 4,500 MW by 2030. 

This structural shift indicates a 27.2% compounded annual growth rate (CAGR) over the next five years, the brokerage said, noting "DC investment of US$ 20-25 bn expected in next 5-6 years". 

PL Capital highlighted that global hyperscalers are driving a portion of this growth, with their market share in Indian data centers expected to double from roughly 33% in CY25 to 66% by 2030. Overall cloud penetration in India is projected to jump to nearly 75% by 2030, up from 44% in 2024, it said.

IT stocks target prices

Below are the target prices and ratings for the nine preferred 'Buy' stocks identified in the brokerage's coverage universe:  Tata Consultancy Services Ltd (TCS): The large-cap IT giant holds a 'Buy' rating from PL Capital, with a set target price of Rs 3,450 per share.  

Infosys Ltd: The stock is rated as a 'Buy' with a target price of Rs 1,570 per share.  Tech Mahindra Ltd: The company shares are tagged with a 'Buy' rating and a target price of Rs 1,660 per share.  

Persistent Systems Ltd: The brokerage maintained a 'Buy' call with a target price of Rs 6,400 per share.  Mphasis Ltd: The firm is rated as a 'Buy' with a target price of Rs 3,000 apiece.  Coforge: The stock received a 'Buy' call alongside a target price of Rs 2,020 a share.

Cyient Ltd: PL Capital has a 'Buy' rating and a target price of Rs 950 per share.  KPIT Technologies: The brokerage has a 'Buy' with a target price of Rs 880 per share.  Latent View Analytics: The firm rounds out the list with a 'Buy' rating and a target price of Rs 450 apiece.