TCS, Amber Ent top 'Buy' stocks today? Here's what makes them bullish

Shrikant Chouhan, head of equity research at Kotak Securities, remains upbeat on TCS and Amber Enterprises shares today. Check out the key reasons here

Here are the top Stocks to Buy for Kotak Securities' Shrikant Chouhan

1. Stock Name – Tata Consultancy Services Ltd. (TCS)

Current Market Price – ₹3,102 

Rating – 'Buy

Fundamental Target Price (Fair Value) – ₹3,550

Technical Desk 

 

Technical Support – 2950 / 2850

Technical Resistance – 3250 / 3550 

Stock Commentary 

 

First, TCS stock is gearing up to ride the wave of rapidly growing demand in the data-centre space. With their strong service capabilities, they’re positioning themselves as a true end-to-end partner.

 

Second, their focus is laser-sharp: building AI-driven data centres for hyperscalers and the next generation of AI companies.

 

 

Third, Tata Group synergies will play a big role. Together, they plan to set up 1 gigawatt of passive data-centre capacity over the next 5–7 years.

 

Fourth, funding discussions are well underway. TCS is looking at a blend of debt and equity. It’s like making a good cup of tea—get the mix right, and everything tastes perfect.

 

Fifth, they’re committed to maintaining industry-leading blended return ratios. A rare promise in today’s world—almost as rare as finding a silent WhatsApp group.

 

And sixth, no changes to the capital allocation policy by the management of the company. Steady, predictable, and reassuring—just the way investors like it.

 

For revenue streams, the plan is clear:

• Capacity rentals

• Power supply

• Networking services

 

Margins will come primarily from rentals and power. Networking, however, will be a pass-through—more like a friendly handoff than a business opportunity.

 

And here’s the smart bit: the more renewable power they use, the better the margins. Why? Because the levelized cost of electricity for renewables is lower. In simple terms: clean energy = happier planet AND happier financial statements.

 

Now, let’s talk valuations:

 

TCS currently trades at about a 10 per cent discount to its long-term mean valuation.

 

In summary, TCS is entering the data-centre game with strategy, scale, and synergy—plus a valuation that might tempt value seekers. With AI demand booming, Tata's muscle behind them, and a thoughtful funding approach, the outlook is rationally positive.

 

And if data centres really are the factories of the future, TCS is gearing up to be one of the master builders.  READ TOP STOCKS TO WATCH TODAY

2. Stock Name – Amber Enterprises India Ltd. 

Current Market Price – ₹7,443 

Rating – Add

Fundamental Target Price (Fair Value) – ₹8,200

Technical Desk 

 

Technical Support – 7300 / 7150

Technical Resistance – 7650 / 8200

Stock Summary

Amber Enterprises India, over the last year, has strengthened its presence in the electronics segment through multiple acquisitions and has plans to reach US$1 bn revenue in this segment by FY28 (versus current revenue of ₹2200 crore as of FY25). Recently, Amber Enterprises has announced the acquisition of a majority stake in one of India’s top-5 PCB manufacturers, Shogini Technoarts Pvt Ltd, for an undisclosed amount. We see this acquisition helping Amber cement its leadership position in the domestic PCB segment and we expect PCBs to contribute ~40 per cent of Amber’s electronics segment revenues in FY28. 

 

PCB is an integral part of all electronic components and typically accounts for 8-10 per cent of the raw material of an EMS player. Despite the criticality and huge market potential, India is heavily dependent on imports, which meet nearly 90 per cent of domestic demand.  We expect strong industry growth, led by import substitution, strong domestic demand and favourable. In addition to the Shogini Technoarts Pvt Ltd acquisition, Amber had earlier acquired a 60 per cent stake in Ascent Circuits and plans to spend ₹4000 crore under the electronic component manufacturing scheme. 

 

In the consumer durable segment, the management expects a sharp recovery in Q4FY26, with overall industry sales expected to remain flat Y-o-Y for FY26 and management is confident of sustaining its edge and expects a 13-15 per cent outperformance over the RAC industry led by diversified product offering, adding wallet share within existing customers, expanding component business and strong growth in the commercial RAC business. In the mobility business, Amber is targeting a doubling of revenue by FY27, backed by strong order book visibility and increasing wallet share among existing customers. 

 

Further, construction is progressing well for Sidwal's greenfield facility for HVAC, pantry doors and gangways; it is expected to commence operations by Q4FY26. On the base EMS business, Amber has expanded its portfolio from ACs and consumer durables to defence, telecom and automobile and recently made significant acquisitions to enhance its electronics business. We expect overall revenues to increase at a CAGR of 20 per cent over FY25-28E, led by growth in components, electronics (led by acquisitions and PCB expansions) and Sidwal segments. We have an Add rating and fair value of ₹8200 on the stock.

 

Amber has reiterated its guidance of 13-15 per cent outperformance in the AC industry and 46 per cent growth in the electronics segment in FY26.