According to Goldman Sachs, Tata Tech has shown a greater reliance on its anchor clients than its rivals, which may have an impact on the stability of the company's revenue.
According to Goldman Sachs, investors may find stronger entry opportunities in the future.
A 'Sell' call with a target price of Rs 900 has been made by Goldman Sachs to begin covering Tata Technologies, citing potential performance issues.
There is a 12% drop from Tata Tech's current market price according to Goldman Sachs' target price. Tata Tech's shares saw a little decrease on June 19, closing at Rs 1,029, for the fifth straight day.
Tata Tech shares have lost almost 14 percent of their value in the last six months, lagging the Nifty 50, which increased by 11 percent in that time.
Goldman Sachs is concerned that VinFast, one of Tata Tech's main clients, may see a drop in revenue in the near future.
In comparison to its rivals, Tata Tech has shown a greater reliance on its anchor customers. According to Goldman Sachs, this reliance may have an impact on the company's revenue stability and increase its susceptibility to changes in the clientele's dynamics.
According to Goldman Sachs, investors may find stronger entry opportunities in the future.
The Goldman Sachs analysis also made clear that during the previous cycles, long-term research and development (R&D) expenditure in the developing aircraft sector has been muted.
According to a report from Goldman Sachs, consistent free cash flow (FCF) growth is anticipated at a modest growth rate.
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