TCS share price: Shares of Tata Consultancy Services (TCS) and Tata Motors were on investors' radar on Thursday (September 7), a day after the IT services bellwether announced that it has entered into a strategic partnership with the digital unit of Jaguar Land Rover (JLR) to transform, simplify, and help manage its digital estate and build a new future-ready, strategic technology architecture that will support the latter’s Reimagine strategy.

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TCS ended 0.75 per cent higher at Rs 3,455.55 while Tata Motors gained 0.74 per cent to end at Rs 614.75.

Jaguar Land Rover has been a wholly-owned subsidiary of Tata Motors, in which Tata Sons has been the largest shareholder, since 2008.

By leveraging new technologies to transform core IT operations and adopting new ways of working, TCS will enable a leaner, more agile, and more scalable operating model. Through synergies and economies of scale with suppliers, this partnership will deliver substantial savings for JLR over the next five years, unlocking free cash flow to reinvest in the future, TCS said in its press release.

Outside of the new contract, TCS is partnering with JLR to help accelerate its vision of a modern luxury client experience tailored to different markets globally, the release added.

Brokerage views on TCS 

Global brokerage JP Morgan has maintained an 'underweight' rating on the stock with a target price of Rs 2,650. The brokerage added that the JLR deal will add $200 million annually to revenues and could potentially add 0.35 per cent each to FY24 and FY25 growth. It further said that the JLR deal along with BSNL and Nest deals, could potentially add 3.5 per cent to Q3 growth and 1.8 per cent each to FY24 and FY25 growth.