Axis Capital believes that there is no respite on growth cuts for the company even as VinFast ramp-down headwinds ebb ahead.
βAnchor-client concentration is likely to increase, reversing recent progress,β said the domestic brokerage firm in its note.
The brokerage firm also stated that the stockβs valuations are also high despite its underperformance on a year-to-date basis.
Additionally, the companyβs client concentration is also likely to rise further in FY25 after a decline over FY20-23.
Also read: Hot stocks: Brokerage views on Varun Beverages, PB Fintech, Tata Tech, 360 One and GMR Airports
Recently, global brokerage firm Citi had also maintained its sell call on the stock with a target price of Rs 945 on the back of its confidence in the Indian market and sector.
Citi stated that the future growth potential looks strong, given the resiliency of tech spending in the automotive vertical, however they had factored in the uncertainties related to VinFast revenues and client concentration.
The shares of Tata Technologies debuted on the stock exchanges last year in November gaining 180% on the same day.
Tata Technologies is an Indian multinational technology company and a subsidiary of Tata Motors engaged in product engineering, that provides services to automotive and aerospace original equipment manufacturers as well as industrial machinery companies.
On Wednesday, Ratan Tata, Chairman Emeritus of Tata Sons, passed away at 86. The Tata Group confirmed its former Chairman’s demise in an official notification following a post on X by RPG Group head Harsh Goenka.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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