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TCS

Tata Consultancy Services NSEI:TCS Stock Report

Last Price

₹2.98k

Market Cap

₹10.9t

7D

-0.3%

1Y

-20.9%

Updated

03 Oct, 2022

Data

Company Financials +
TCS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance4/6
Financial Health6/6
Dividends5/6

TCS Stock Overview

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services worldwide.

Tata Consultancy Services Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tata Consultancy Services
Historical stock prices
Current Share Price₹2,984.95
52 Week High₹4,043.00
52 Week Low₹2,926.10
Beta0.69
1 Month Change-4.65%
3 Month Change-7.19%
1 Year Change-20.89%
3 Year Change45.77%
5 Year Change143.26%
Change since IPO2,317.09%

Recent News & Updates

Aug 22
With EPS Growth And More, Tata Consultancy Services (NSE:TCS) Makes An Interesting Case

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...

Aug 01
A Look Into Tata Consultancy Services' (NSE:TCS) Impressive Returns On Capital

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...

Shareholder Returns

TCSIN ITIN Market
7D-0.3%0.2%-0.6%
1Y-20.9%-23.3%-3.0%

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.

Price Volatility

Is TCS's price volatile compared to industry and market?
TCS volatility
TCS Average Weekly Movement3.2%
IT Industry Average Movement5.6%
Market Average Movement5.9%
10% most volatile stocks in IN Market9.2%
10% least volatile stocks in IN Market3.8%

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

FoundedEmployeesCEOWebsite
1968592,195Rajesh Gopinathanhttps://www.tcs.com

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

How do Tata Consultancy Services's earnings and revenue compare to its market cap?
TCS fundamental statistics
Market Cap₹10.92t
Earnings (TTM)₹387.97b
Revenue (TTM)₹1.99t

28.2x

P/E Ratio

5.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TCS income statement (TTM)
Revenue₹1.99t
Cost of Revenue₹1.13t
Gross Profit₹857.47b
Other Expenses₹469.50b
Earnings₹387.97b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 10, 2022

Earnings per share (EPS)106.03
Gross Margin43.07%
Net Profit Margin19.49%
Debt/Equity Ratio0%

How did TCS perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

42%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is TCS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

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

  • Analyst Forecast

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.

TCS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue5.3x
Enterprise Value/EBITDA20.3x
PEG Ratio2.8x

Price to Earnings Ratio vs Peers

How does TCS's PE Ratio compare to its peers?

TCS PE Ratio vs Peers
The above table shows the PE ratio for TCS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.2x
INFY Infosys
24.4x13.0%₹5.8t
HCLTECH HCL Technologies
17.2x10.6%₹2.5t
507685 Wipro
18.7x12.4%₹2.2t
TECHM Tech Mahindra
16.5x12.5%₹883.8b
TCS Tata Consultancy Services
28.2x10.2%₹10.9t

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.

TCS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio28.2x
Fair PE Ratio38.9x

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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Future Growth

How is Tata Consultancy Services forecast to perform in the next 1 to 3 years based on estimates from 41 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.2%

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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Past Performance

How has Tata Consultancy Services performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


7.8%

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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Financial Health

How is Tata Consultancy Services's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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.


Balance Sheet


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Dividend

What is Tata Consultancy Services's current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.44%

Current Dividend Yield

Dividend Yield vs Market

Tata Consultancy Services Dividend Yield vs Market
How does Tata Consultancy Services dividend yield compare to the market?
SegmentDividend Yield
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.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Rajesh Gopinathan (51 yo)

5.67yrs

Tenure

₹257,660,000

Compensation

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
How has Rajesh Gopinathan's remuneration changed compared to Tata Consultancy Services's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

₹388b

Mar 31 2022₹258m₹15m

₹383b

Dec 31 2021n/an/a

₹376b

Sep 30 2021n/an/a

₹366b

Jun 30 2021n/an/a

₹344b

Mar 31 2021₹204m₹13m

₹324b

Dec 31 2020n/an/a

₹312b

Sep 30 2020n/an/a

₹307b

Jun 30 2020n/an/a

₹312b

Mar 31 2020₹134m₹14m

₹323b

Dec 31 2019n/an/a

₹324b

Sep 30 2019n/an/a

₹324b

Jun 30 2019n/an/a

₹323b

Mar 31 2019₹160m₹12m

₹315b

Dec 31 2018n/an/a

₹303b

Sep 30 2018n/an/a

₹287b

Jun 30 2018n/an/a

₹272b

Mar 31 2018₹125m₹10m

₹258b

Dec 31 2017n/an/a

₹255b

Sep 30 2017n/an/a

₹258b

Jun 30 2017n/an/a

₹259b

Mar 31 2017₹62m₹7m

₹263b

Dec 31 2016n/an/a

₹260b

Sep 30 2016n/an/a

₹254b

Jun 30 2016n/an/a

₹248b

Mar 31 2016₹30m₹5m

₹243b

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.


Leadership Team

Experienced Management: TCS's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: TCS's board of directors are considered experienced (5.7 years average tenure).


Ownership

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

NSEI:TCS Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
23 May 22Buy₹3,446,700Damodar PadhiIndividual1,000₹3,888.85
02 Mar 22Buy₹1,093,185Gowri VenkatesanIndividual300₹3,749.76
18 Jan 22Buy₹446,596Sanjeev MehraIndividual112₹3,987.46
18 Jan 22Buy₹2,594,657Seema MehraIndividual650₹3,991.78
02 Dec 21Sell₹1,068,465Niraj SanghviIndividual300₹3,589.00
22 Oct 21Buy₹886,181Damodar PadhiIndividual250₹3,544.75

Ownership Breakdown

What is the ownership structure of TCS?
Owner TypeNumber of SharesOwnership Percentage
Public Companies47,5640.001%
Individual Insiders633,1990.02%
State or Government15,912,5530.4%
General Public430,865,05711.8%
Institutions567,268,66315.5%
Private Companies2,644,324,33772.3%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 84.97% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
72.27%
Tata Sons Private Limited
2,644,317,117₹7.9t0%no data
3.94%
Life Insurance Corporation of India, Asset Management Arm
144,185,519₹430.4b6.69%4.37%
0.92%
BlackRock, Inc.
33,649,673₹100.4b3.97%0.03%
0.85%
SBI Funds Management Limited
31,190,218₹93.1b0%2.23%
0.85%
Invesco Ltd.
31,072,921₹92.8b0%0.4%
0.74%
The Vanguard Group, Inc.
27,157,180₹81.1b0%0.02%
0.7%
J.P. Morgan Asset Management, Inc.
25,691,945₹76.7b-5.56%0.18%
0.64%
Axis Asset Management Company Limited
23,505,274₹70.2b0%4.8%
0.39%
Nps Trust
14,443,818₹43.1b0%7.72%
0.37%
Singapore
13,641,333₹40.7b0%no data
0.32%
UTI Asset Management Company Limited
11,688,173₹34.9b0%2.33%
0.32%
First Sentier Investors (Australia) IM Ltd
11,529,019₹34.4b0%0.99%
0.31%
Veritas Asset Management LLP
11,166,873₹33.3b-0.18%1.65%
0.3%
abrdn plc
10,937,062₹32.6b-0.98%0.43%
0.26%
HDFC Asset Management Company Limited
9,629,343₹28.7b13.14%0.85%
0.24%
RBC Global Asset Management Inc.
8,670,498₹25.9b0.03%0.25%
0.23%
Norges Bank Investment Management
8,469,685₹25.3b0%0.04%
0.23%
ICICI Prudential Asset Management Company Limited
8,281,914₹24.7b7.02%0.81%
0.18%
Capital Research and Management Company
6,650,046₹19.9b-0.01%0.02%
0.17%
Mirae Asset Global Investments Co., Ltd
6,135,388₹18.3b-1.22%0.35%
0.16%
Kotak Mahindra Asset Management Company Limited
6,026,379₹18.0b-19.46%1.36%
0.16%
Massachusetts Financial Services Company
6,004,687₹17.9b-8.19%0.06%
0.15%
Tata Asset Management Limited
5,506,827₹16.4b13.05%3.39%
0.13%
Franklin Resources, Inc.
4,845,095₹14.5b0.75%0.08%
0.13%
Harding Loevner LP
4,827,561₹14.4b23.17%0.53%

Company Information

Tata Consultancy Services Limited's employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • Tata Consultancy Services Limited
  • TCS House
  • Raveline Street
  • Mumbai
  • Maharashtra
  • 400001
  • India


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532540BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2004
TCSNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2004

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


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.