TCS Stock Overview
Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide.
No risks detected for TCS from our risk checks.
Tata Consultancy Services Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||₹2,984.95|
|52 Week High||₹4,043.00|
|52 Week Low||₹2,926.10|
|1 Month Change||-4.65%|
|3 Month Change||-7.19%|
|1 Year Change||-20.89%|
|3 Year Change||45.77%|
|5 Year Change||143.26%|
|Change since IPO||2,317.09%|
Recent News & Updates
With EPS Growth And More, Tata Consultancy Services (NSE:TCS) Makes An Interesting Case
It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
A Look Into Tata Consultancy Services' (NSE:TCS) Impressive Returns On Capital
What are the early trends we should look for to identify a stock that could multiply in value over the long term? In a...
|TCS||IN IT||IN Market|
Return vs Industry: TCS exceeded the Indian IT industry which returned -21.9% over the past year.
Return vs Market: TCS underperformed the Indian Market which returned -0.6% over the past year.
|TCS Average Weekly Movement||3.2%|
|IT Industry Average Movement||5.6%|
|Market Average Movement||5.9%|
|10% most volatile stocks in IN Market||9.2%|
|10% least volatile stocks in IN Market||3.8%|
Stable Share Price: TCS is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: TCS's weekly volatility (3%) has been stable over the past year.
About the Company
Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide. The company operates through Banking, Financial Services and Insurance; Manufacturing; Retail and Consumer Business; Communication, Media and Technology; Life Sciences and Healthcare; and Others segments. It offers CHROMA, a cloud-based talent management solution; ignio, a cognitive automation software; TCS iON, an assessment platform; TAP, a procurement offering; TCS MasterCraft, a platform to automate and manage IT processes; Quartz, a blockchain solution; and TCS OmniStore, a commerce platform.
Tata Consultancy Services Fundamentals Summary
|TCS fundamental statistics|
Is TCS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TCS income statement (TTM)|
|Cost of Revenue||₹1.13t|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
Oct 10, 2022
|Earnings per share (EPS)||106.03|
|Net Profit Margin||19.49%|
How did TCS perform over the long term?See historical performance and comparison
1.4%Current Dividend Yield
Is TCS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 1/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TCS?
Other financial metrics that can be useful for relative valuation.
|What is TCS's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does TCS's PE Ratio compare to its peers?
|TCS PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
HCLTECH HCL Technologies
TECHM Tech Mahindra
TCS Tata Consultancy Services
Price-To-Earnings vs Peers: TCS is expensive based on its Price-To-Earnings Ratio (28.2x) compared to the peer average (19.2x).
Price to Earnings Ratio vs Industry
How does TCS's PE Ratio compare vs other companies in the IN IT Industry?
Price-To-Earnings vs Industry: TCS is expensive based on its Price-To-Earnings Ratio (28.2x) compared to the Indian IT industry average (23.1x)
Price to Earnings Ratio vs Fair Ratio
What is TCS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||28.2x|
|Fair PE Ratio||38.9x|
Price-To-Earnings vs Fair Ratio: TCS is good value based on its Price-To-Earnings Ratio (28.2x) compared to the estimated Fair Price-To-Earnings Ratio (38.9x).
Share Price vs Fair Value
What is the Fair Price of TCS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TCS (₹2984.95) is trading above our estimate of fair value (₹1315.81)
Significantly Below Fair Value: TCS is trading above our estimate of fair value.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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How is Tata Consultancy Services forecast to perform in the next 1 to 3 years based on estimates from 41 analysts?
Future Growth Score2/6
Future Growth Score 2/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TCS's forecast earnings growth (10.2% per year) is above the savings rate (6.8%).
Earnings vs Market: TCS's earnings (10.2% per year) are forecast to grow slower than the Indian market (18.5% per year).
High Growth Earnings: TCS's earnings are forecast to grow, but not significantly.
Revenue vs Market: TCS's revenue (9% per year) is forecast to grow slower than the Indian market (10.6% per year).
High Growth Revenue: TCS's revenue (9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TCS's Return on Equity is forecast to be very high in 3 years time (42.5%).
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How has Tata Consultancy Services performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TCS has high quality earnings.
Growing Profit Margin: TCS's current net profit margins (19.5%) are lower than last year (20.1%).
Past Earnings Growth Analysis
Earnings Trend: TCS's earnings have grown by 7.8% per year over the past 5 years.
Accelerating Growth: TCS's earnings growth over the past year (12.7%) exceeds its 5-year average (7.8% per year).
Earnings vs Industry: TCS earnings growth over the past year (12.7%) underperformed the IT industry 20.7%.
Return on Equity
High ROE: TCS's Return on Equity (43%) is considered outstanding.
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How is Tata Consultancy Services's financial position?
Financial Health Score6/6
Financial Health Score 6/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: TCS's short term assets (₹1,079.6B) exceed its short term liabilities (₹407.2B).
Long Term Liabilities: TCS's short term assets (₹1,079.6B) exceed its long term liabilities (₹93.1B).
Debt to Equity History and Analysis
Debt Level: TCS is debt free.
Reducing Debt: TCS had no debt 5 years ago.
Debt Coverage: TCS has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: TCS has no debt, therefore coverage of interest payments is not a concern.
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What is Tata Consultancy Services's current dividend yield, its reliability and sustainability?
Dividend Score 5/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
|Tata Consultancy Services Dividend Yield vs Market|
|Company (Tata Consultancy Services)||1.4%|
|Market Bottom 25% (IN)||0.4%|
|Market Top 25% (IN)||1.6%|
|Industry Average (IT)||2.1%|
|Analyst forecast in 3 Years (Tata Consultancy Services)||3.0%|
Notable Dividend: TCS's dividend (1.44%) is higher than the bottom 25% of dividend payers in the Indian market (0.36%).
High Dividend: TCS's dividend (1.44%) is low compared to the top 25% of dividend payers in the Indian market (1.63%).
Stability and Growth of Payments
Stable Dividend: TCS's dividends per share have been stable in the past 10 years.
Growing Dividend: TCS's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (41.8%), TCS's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (42.2%), TCS's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Rajesh Gopinathan (51 yo)
Mr. Rajesh Gopinathan, PGDM has been the Chief Executive Officer, Managing Director and Executive Director at Tata Consultancy Services Limited since February 21, 2017. Mr. Gopinathan served as the Chief F...
CEO Compensation Analysis
|Rajesh Gopinathan's Compensation vs Tata Consultancy Services Earnings|
|Date||Total Comp.||Salary||Company Earnings|
|Jun 30 2022||n/a||n/a|
|Mar 31 2022||₹258m||₹15m|
|Dec 31 2021||n/a||n/a|
|Sep 30 2021||n/a||n/a|
|Jun 30 2021||n/a||n/a|
|Mar 31 2021||₹204m||₹13m|
|Dec 31 2020||n/a||n/a|
|Sep 30 2020||n/a||n/a|
|Jun 30 2020||n/a||n/a|
|Mar 31 2020||₹134m||₹14m|
|Dec 31 2019||n/a||n/a|
|Sep 30 2019||n/a||n/a|
|Jun 30 2019||n/a||n/a|
|Mar 31 2019||₹160m||₹12m|
|Dec 31 2018||n/a||n/a|
|Sep 30 2018||n/a||n/a|
|Jun 30 2018||n/a||n/a|
|Mar 31 2018||₹125m||₹10m|
|Dec 31 2017||n/a||n/a|
|Sep 30 2017||n/a||n/a|
|Jun 30 2017||n/a||n/a|
|Mar 31 2017||₹62m||₹7m|
|Dec 31 2016||n/a||n/a|
|Sep 30 2016||n/a||n/a|
|Jun 30 2016||n/a||n/a|
|Mar 31 2016||₹30m||₹5m|
Compensation vs Market: Rajesh's total compensation ($USD3.17M) is above average for companies of similar size in the Indian market ($USD1.31M).
Compensation vs Earnings: Rajesh's compensation has increased by more than 20% in the past year.
Experienced Management: TCS's management team is considered experienced (3.5 years average tenure).
Experienced Board: TCS's board of directors are considered experienced (5.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
|23 May 22||Buy₹3,446,700||Damodar Padhi||Individual||1,000||₹3,888.85|
|02 Mar 22||Buy₹1,093,185||Gowri Venkatesan||Individual||300||₹3,749.76|
|18 Jan 22||Buy₹446,596||Sanjeev Mehra||Individual||112||₹3,987.46|
|18 Jan 22||Buy₹2,594,657||Seema Mehra||Individual||650||₹3,991.78|
|02 Dec 21||Sell₹1,068,465||Niraj Sanghvi||Individual||300||₹3,589.00|
|22 Oct 21||Buy₹886,181||Damodar Padhi||Individual||250||₹3,544.75|
|Owner Type||Number of Shares||Ownership Percentage|
|State or Government||15,912,553||0.4%|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
Tata Consultancy Services Limited's employee growth, exchange listings and data sources
- Name: Tata Consultancy Services Limited
- Ticker: TCS
- Exchange: NSEI
- Founded: 1968
- Industry: IT Consulting and Other Services
- Sector: Software
- Implied Market Cap: ₹10.922t
- Shares outstanding: 3.66b
- Website: https://www.tcs.com
Number of Employees
- Tata Consultancy Services Limited
- TCS House
- Raveline Street
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|532540||BSE (Mumbai Stock Exchange)||Yes||Equity Shares||IN||INR||Aug 2004|
|TCS||NSEI (National Stock Exchange of India)||Yes||Equity Shares||IN||INR||Aug 2004|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/10/03 00:00|
|End of Day Share Price||2022/10/03 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.