TCS, Titan, Trent, Tata Steel, Tata Power: Which Tata stock offers good buying opportunity

Tata Group stocks have shown mixed performance recently, led by geopolitical tension in West Asia, according to a recent report by Master Capital Services. It believes that some companies are facing operational challenges and stretched valuations, while others have demonstrated strong earnings growth and potential for recovery.

Master Capital Services identifies Tejas Networks Ltd and Nelco Ltd as underperformers due to operational issues, order delays, and limited market scalability. These stocks also contend with unsustainable valuations or thin profit margins.

Trent Ltd and Tata Technologies Ltd are noted as quality franchises with premium valuations, having price-to-earnings ratios above 84 times and 34 times respectively. Master Capital highlights that these valuations reflect several years of expected growth, which may restrict near-term gains.

HDFC Securities recently upgraded Trent to a 'buy' with a target price of Rs  4,300, while Antique Stock Broking maintained the same rating with a revised target price of Rs 4,856. However, JM Financial has a 'reduce' rating on Tata Technologies with a target price of Rs 560 apeice. Nirmal Bang has a 'hold' rating on the stock with a target price of Rs 729.

Titan and Tata Steel Ltd stand out as top performers. Titan’s jewellery business recorded a 46 per cent YoY growth in the fourth quarter of FY26. Tata Steel is managing European restructuring alongside growth driven by India's infrastructure demand, while aggressively reducing debt. Master Capital reports Titan’s one-year return at 47 per cent and Tata Steel’s at 58 per cent over the same period.

Anand Rathi Share & Stock Brokers recently upgraded Tata Steel to 'buy' with a target price of Rs 240, while ICICI Securities has a target price of Rs 226 on it with the same rating. Titan Company Ltd remains among the top picks of Motilal Oswal. It has a 'buy' rating on the stock with a target price of Rs 5,200.

Several Tata Group companies are viewed as recovery candidates despite current challenges. Master Capital expects Tata Consultancy Services (TCS), Tata Power, Tata Motors PV, and Voltas to improve operationally and benefit from cyclical factors in the next 12 months. TCS is entering a recovery phase, Tata Power is advancing its 2.5 GW portfolio for FY27, Tata Motors PV is gaining SUV market share, and Voltas is likely to regain air conditioner segment share amid hotter weather forecasts for 2026.

YES Securities has a 'buy' rating on TCS with a target price of Rs 3,534, citing strong exit to FY26 with AI and deal momentum intact. Equirus Securities upgraded the stock to 'long' with a target price of 2,945 citing its robust FCF generation, foray into data center business and its increasing M&A focus and rich RoE.

Looking ahead to FY27, Master Capital points to Tata Chemicals, Tata Motors PV, and Tata Power as stocks to watch. Tata Chemicals may gain from a soda ash price upcycle, Tata Motors PV could benefit from an expected 10% growth in the passenger vehicle segment supported by a GST reduction, and Tata Power’s demand is projected to rise during summer, with peak demand forecast between 270 and 280 GW.

Bernstein recently initiated coverage on power stocks including Tata Power Company, which was assigned an 'outperform' rating with a target price of Rs 443. Elara Capital has a 'buy' rating on Tata Power with a target price of Rs 540. Kotak Institutional Equities has a 'sell' rating on Tata Chemicals with a target price of Rs 630.

Geopolitical factors have also affected Tata Group stocks. The US-Iran conflict and rising crude oil prices, approaching $100 per barrel, have exerted mixed effects. Tata Steel, Tata Motors, Tata Chemicals, and Voltas face margin pressures from higher raw material and shipping costs.

In contrast, TCS and Tata Tech benefit from dollar earnings, which provide a cushion against rupee depreciation. Titan has experienced increased jewellery inventory value and consumer buying driven by rising gold prices, nearing $5,500. The analysis emphasises the role of operational improvements and external influences in shaping the near-term outlook for Tata companies.