TCS: Strong AI Growth Drives 'BUY' Rating, Target Price Rs 3950

• Choice Institutional Equities recommends 'BUY' for TCS with a target price of Rs 3950.
• TCS's AI growth is fueled by expanding AI services revenue and an AI-first delivery culture.
• The company is executing two core AI programs: AI-led business transformation and AI-enabled modernization.
• TCS has strong ecosystem partnerships, including the HyperVault AI-led data-center JV with TPG.
• Analysts project Revenue, EBIT, and PAT to grow at a CAGR of 7.2%, 9.6%, and 8.9% respectively over FY25–FY28E.

Why It Matters: TCS's robust AI strategy and strong financial outlook lead to a 'BUY' recommendation with a Rs 3950 target.