5 Stock to Sell: Brokerages Recommend Sell on Trent, Tech Mahindra, and Others Tata Elxsi reported a steady performance in its fourth quarter of fiscal year 2026, with revenue growth and margins aligning with expectations. The company’s improved execution across key segments, including continued traction from original equipment manufacturer clients, stabilization in automotive demand, and recovery in the media and communication sector, were highlighted by ICICI Securities. Despite these positives, the brokerage maintained a “sell” rating on the stock, citing a target price of Rs 4,380. This price implies a potential downside of 3.5% from current levels, reflecting caution about the stock’s near-term outlook. Persistent Systems, on the other hand, faced a slightly softer-than-expected performance in Q4FY26, with both revenue and margins falling short of estimates. BOB Capital Markets acknowledged the near-term miss but emphasized the company’s strong growth trajectory, projecting a US$2 billion revenue run rate by the fourth quarter of FY27. While the brokerage reaffirmed its belief in Persistent Systems as a growth leader in the IT sector, it retained a “sell” rating with a target price of Rs 3,611. This price suggests a potential upside of 28.7% from current levels, indicating a cautious but optimistic stance on the company’s long-term prospects. Tech Mahindra delivered a largely in-line performance in Q4FY26, according to Citigroup. The brokerage noted that the company executed reasonably well despite a challenging industry environment. However, Citigroup maintained a “sell” rating on the stock, with a target price of Rs 1,275. This price is below the current market price of Rs 1,416, signaling a cautious outlook for the near term.#icici_securities #citigroup #tata_elxsi #bob_capital_markets #persistent_systems
5 Stocks to Sell: Brokerages Flag Up to 25% Downside in Persistent, HCL Technologies and Other Stocks Indian equity benchmarks rose on Monday, with the NIFTY 50 gaining 0.84% to 24,099.25 and the BSE Sensex climbing 0.88% to 77,338.66. The broader market showed positive sentiment, driven by buying in select sectors. Nifty Realty, Nifty IT, and Nifty Pharma stocks outperformed the benchmark indices, while Nifty Private Bank and Nifty Financial Services lagged, limiting overall gains. Amid this mixed market environment, several brokerages issued ‘Sell’ recommendations on specific stocks, citing valuation concerns, uneven earnings visibility, and sector-specific challenges. Zensar Technologies Ltd came under scrutiny after BOB Capital Markets reiterated its ‘Sell’ call, highlighting rising competitive intensity in the IT services sector. The brokerage set a target price of Rs 488, implying a 10% downside from the current market price of Rs 542.90. It noted that the company’s Q4 FY26 performance fell short of expectations, primarily due to weakness in the TMT (technology, media, telecom) segment and delayed booking of a major deal. The firm warned that continued pricing pressures and heightened competition could dampen near-term growth prospects. Cyient Ltd also faced a ‘Sell’ rating from Motilal Oswal, which pointed to uneven growth despite signs of business stabilization. The brokerage set a target price of Rs 830, indicating a 6% downside from the current price of Rs 883.15. Cyient’s DET (Digital, Engineering, and Technology) business reported Q4 FY26 revenue of USD 163 million, down 2.4% quarter-on-quarter in constant currency terms, missing its 2.1% growth target. While the company showed early stabilization, the brokerage emphasized that growth visibility remains inconsistent.#motilal_oswal #zensar_technologies_ltd #bob_capital_markets #cyient_ltd #persistent_systems_ltd
