TCS

Tata Consultancy ServicesNSEI:TCS Stock Report

Market Cap

₹14.3t

7D

-2.3%

1Y

56.5%

Updated

22 Sep, 2021

Data

Company Financials +
TCS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends5/6

TCS 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₹3,862.15
52 Week High₹2,302.60
52 Week Low₹3,981.75
Beta0.67
1 Month Change6.18%
3 Month Change14.48%
1 Year Change56.52%
3 Year Change80.29%
5 Year Change218.78%
Change since IPO3,027.40%

Recent News & Updates

Aug 01
With EPS Growth And More, Tata Consultancy Services (NSE:TCS) Is Interesting

With EPS Growth And More, Tata Consultancy Services (NSE:TCS) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Jul 10
Tata Consultancy Services (NSE:TCS) Is Paying Out A Larger Dividend Than Last Year

Tata Consultancy Services (NSE:TCS) Is Paying Out A Larger Dividend Than Last Year

The board of Tata Consultancy Services Limited ( NSE:TCS ) has announced that it will be increasing its dividend by 40...

Shareholder Returns

TCSIN ITIN Market
7D-2.3%0.9%-0.2%
1Y56.5%71.8%64.1%

Return vs Industry: TCS underperformed the Indian IT industry which returned 71.8% over the past year.

Return vs Market: TCS underperformed the Indian Market which returned 64.1% over the past year.

Price Volatility

Is TCS's price volatile compared to industry and market?
TCS volatility
TCS Beta0.67
Industry Beta0.66
Market Beta1

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
1968488,649Rajesh 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; and Others segments. It offers CHROMA, a cloud-based talent management solution; ignio, a cognitive automation software product; 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.

Valuation

Is Tata Consultancy Services undervalued compared to its fair value and its price relative to the market?

41.49x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCS (₹3862.15) is trading above our estimate of fair value (₹1583.81)

Significantly Below Fair Value: TCS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TCS is poor value based on its PE Ratio (41.5x) compared to the Indian IT industry average (31x).

PE vs Market: TCS is poor value based on its PE Ratio (41.5x) compared to the Indian market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: TCS is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: TCS is overvalued based on its PB Ratio (15.9x) compared to the IN IT industry average (2.1x).


Future Growth

How is Tata Consultancy Services forecast to perform in the next 1 to 3 years based on estimates from 38 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCS's forecast earnings growth (9.9% per year) is above the savings rate (6.8%).

Earnings vs Market: TCS's earnings (9.9% per year) are forecast to grow slower than the Indian market (18.4% per year).

High Growth Earnings: TCS's earnings are forecast to grow, but not significantly.

Revenue vs Market: TCS's revenue (9.8% per year) is forecast to grow slower than the Indian market (12.6% per year).

High Growth Revenue: TCS's revenue (9.8% 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 (41%).


Past Performance

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

6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCS has high quality earnings.

Growing Profit Margin: TCS's current net profit margins (20.1%) are higher than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: TCS's earnings have grown by 6.4% per year over the past 5 years.

Accelerating Growth: TCS's earnings growth over the past year (10.3%) exceeds its 5-year average (6.4% per year).

Earnings vs Industry: TCS earnings growth over the past year (10.3%) underperformed the IT industry 19.6%.


Return on Equity

High ROE: TCS's Return on Equity (38.1%) is considered high.


Financial Health

How is Tata Consultancy Services's financial position?


Financial Position Analysis

Short Term Liabilities: TCS's short term assets (₹1,044.1B) exceed its short term liabilities (₹356.2B).

Long Term Liabilities: TCS's short term assets (₹1,044.1B) exceed its long term liabilities (₹97.0B).


Debt to Equity History and Analysis

Debt Level: TCS is debt free.

Reducing Debt: TCS has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

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


Dividend

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

0.98%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCS's dividend (0.98%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: TCS's dividend (0.98%) is low compared to the top 25% of dividend payers in the Indian market (1.46%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.3%), TCS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCS's dividends in 3 years are forecast to be covered by earnings (66.5% payout ratio).


Next Steps

Management

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

4.5yrs

Average management tenure


CEO

Rajesh Gopinathan (50 yo)

4.58yrs

Tenure

₹203,654,000

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

Compensation vs Market: Rajesh's total compensation ($USD2.76M) is above average for companies of similar size in the Indian market ($USD1.19M).

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 (4.5 years average tenure).


Board Members

Experienced Board: TCS's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TCS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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
  • Market Cap: ₹14.286t
  • Shares outstanding: 3.70b
  • Website: https://www.tcs.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/22 15:14
End of Day Share Price2021/09/22 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.