Sell Tata Technologies, ICICI Securities sets target at Rs 510

ICICI Securities has issued a 'Sell' recommendation on Tata Technologies, citing valuation concerns and limited upside potential. The brokerage firm has set a target price of ₹510, indicating a downside from the current market levels.

According to ICICI Securities, while Tata Technologies has strong fundamentals and a promising outlook in the engineering and product development space, the stock is currently trading at premium valuations, which may not be sustainable in the near term.

The firm also highlighted concerns about margin pressure, client concentration risks, and a possible slowdown in discretionary spending in global markets, which could impact the company’s earnings growth.

Investors are advised to book profits and consider re-entry at lower levels for better long-term gains.