Tata Consultancy Services Ltd. Stock Hits 52-Week Low at Rs.2780

Recent Price Movement and Market Context

On 12 Feb 2026, TCS shares declined by 4.16% during the trading session, hitting an intraday low of Rs.2780, the lowest level in the past year. This drop extends a two-day losing streak, during which the stock has fallen by 6.54%. The decline outpaced the IT - Software sector’s fall of 3.82% on the same day, indicating relative weakness in TCS’s price action. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.

Meanwhile, the broader market has shown mixed signals. The Sensex opened 265.21 points lower and was trading at 83,891.79, down 0.41%, though it remains within 2.7% of its 52-week high of 86,159.02. The index has recorded a three-week consecutive rise, gaining 2.89% over that period, but TCS’s performance contrasts sharply with this broader market resilience.

Performance Over the Past Year

Over the last 12 months, TCS has delivered a total return of -29.41%, significantly underperforming the Sensex, which has gained 10.07% in the same period. The stock’s 52-week high was Rs.4040.85, highlighting the extent of the recent decline. This underperformance is consistent with the company’s trend over the past three years, during which it has lagged the BSE500 index annually.

Financial Metrics and Valuation

TCS maintains a strong fundamental profile despite recent price weakness. The company’s average Return on Equity (ROE) stands at 43.49%, with the most recent figure at 47.3%, reflecting efficient capital utilisation. Net sales have grown at an annual rate of 10.21%, indicating steady revenue expansion. The company’s debt-to-equity ratio remains low, averaging zero, underscoring a conservative capital structure.

Valuation metrics show a Price to Book Value of 9.9, which is considered attractive relative to its historical peer valuations. The Price/Earnings to Growth (PEG) ratio is 4.2, while profits have increased by 4.9% over the past year, despite the stock’s negative return. At the current price, TCS offers a dividend yield of 3.75%, which is relatively high within the sector.

Sector and Market Capitalisation Position

With a market capitalisation of Rs.10,52,646 crore, TCS is the largest company in the Computers - Software & Consulting sector, representing 27.13% of the sector’s total market cap. Its annual sales of Rs.260,802 crore account for 25.64% of the industry’s revenue, underscoring its dominant market position. Institutional investors hold 23.25% of the stock, reflecting significant participation by entities with extensive analytical resources.

Recent Operational Indicators

Recent quarterly data reveals some areas of concern. The company reported flat results in the December 2025 quarter, with Earnings Per Share (EPS) at Rs.29.44, one of the lowest quarterly figures in recent periods. The Debtors Turnover Ratio for the half-year stood at 4.76 times, the lowest recorded, indicating slower collection cycles. These factors may have contributed to the subdued market sentiment and pressure on the stock price.

Technical and Relative Strength Analysis

Technically, TCS’s share price trading below all major moving averages suggests a lack of upward momentum in the near term. The stock’s underperformance relative to the IT sector and the broader market highlights challenges in regaining investor confidence. The sector itself has declined by 3.82% on the day, but TCS’s sharper fall indicates specific pressures on the company’s shares.

Summary of Ratings and Market Position

MarketsMOJO currently assigns TCS a Mojo Score of 51.0 with a Mojo Grade of Hold, upgraded from Sell on 22 Apr 2025. The market cap grade is 1, reflecting its status as a large-cap leader. Despite the recent price decline, the company’s fundamental strength and market dominance remain intact, though the stock’s recent trend and relative weakness warrant close observation.

Conclusion

Tata Consultancy Services Ltd.’s stock reaching a 52-week low of Rs.2780 reflects a period of price correction amid broader market volatility and sectoral pressures. While the company’s fundamentals remain robust, recent financial indicators and technical trends have weighed on the share price. The stock’s underperformance relative to the Sensex and its sector highlights the challenges faced over the past year. Investors and market participants will continue to monitor the stock’s price action in the context of its dominant market position and steady long-term growth metrics.

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