ScoreWhy is Tata Consultancy Services Ltd. ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 43.49%
- Healthy long term growth as Net Sales has grown by an annual rate of 10.24%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
Positive results in Sep 25
- OPERATING CF(Y) Highest at Rs 48,908.00 Cr
- NET SALES(Q) Highest at Rs 65,799.00 cr
- PBDIT(Q) Highest at Rs 17,978.00 cr.
3
With ROE of 47.3, it has a Attractive valuation with a 11 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -26.74%, its profits have risen by 4.4% ; the PEG ratio of the company is 5.2
- At the current price, the company has a high dividend yield of 4
4
High Institutional Holdings at 23.03%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 1.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -26.74% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to TCS should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is TCS for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
TCS
-26.87%
-1.33
20.04%
Sensex
4.67%
0.39
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.24%
EBIT Growth (5y)
9.87%
EBIT to Interest (avg)
72.32
Debt to EBITDA (avg)
0.14
Net Debt to Equity (avg)
-0.40
Sales to Capital Employed (avg)
2.12
Tax Ratio
24.85%
Dividend Payout Ratio
92.45%
Pledged Shares
0
Institutional Holding
23.03%
ROCE (avg)
99.35%
ROE (avg)
43.49%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
28
Price to Book Value
10.98
EV to EBIT
17.78
EV to EBITDA
16.35
EV to Capital Employed
17.57
EV to Sales
4.37
PEG Ratio
5.23
Dividend Yield
3.96%
ROCE (Latest)
98.86%
ROE (Latest)
47.26%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
Bullish
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CF(Y)
Highest at Rs 48,908.00 Cr
NET SALES(Q)
Highest at Rs 65,799.00 cr
PBDIT(Q)
Highest at Rs 17,978.00 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 27.32%
PBT LESS OI(Q)
Highest at Rs 16,336.00 cr.
PAT(Q)
Highest at Rs 12,931.90 cr.
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.76 times
Loading Valuation Snapshot...
Here's what is working for TCS
Operating Cash Flow - Annually
Highest at Rs 48,908.00 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 65,799.00 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 17,978.00 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 27.32%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 16,336.00 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 12,931.90 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Here's what is not working for TCS
Debtors Turnover Ratio- Half Yearly
Lowest at 4.76 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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