Tata Consultancy Services Ltd’s fundamental analysis highlights key financial metrics including market capitalisation of ₹1,503,333.45 crore, PE ratio of 32.75, debt-to-equity ratio of 8.78, and return on equity of 50.3%. These figures reflect the company’s financial health and current market valuation.
Content:
- Tata Consultancy Services Ltd Overview
- Tata Consultancy Services Ltd Financial Results
- Tata Consultancy Services Ltd Financial Analysis
- Tata Consultancy Services Company Metrics
- Tata Consultancy Services Stock Performance
- Tata Consultancy Services Ltd Peer Comparison
- TCS Shareholding Pattern
- Tata Consultancy Services History
- How To Invest In Tata Consultancy Services Ltd Share?
- Tata Consultancy Services Limited Fundamental Analysis – FAQs
Tata Consultancy Services Ltd Overview
Tata Consultancy Services Ltd is India’s largest IT services company. It operates in the information technology sector, providing IT services, consulting, and business solutions across various industries globally.
The company has a market capitalisation of ₹1,503,333.45 crore and is listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, the stock is trading 6.64% below its 52-week high and 25.49% above its 52-week low.
Tata Consultancy Services Ltd Financial Results
Tata Consultancy Services Ltd demonstrated consistent growth from FY 22 to FY 24, with sales rising from ₹1,91,754 crore to ₹2,40,893 crore and net profit increasing from ₹38,449 crore to ₹46,099 crore. The company maintained a strong OPM and improved EPS over the years.
1. Revenue Trend: Sales increased from ₹1,91,754 crore in FY 22 to ₹2,25,458 crore in FY 23, and further to ₹2,40,893 crore in FY 24, indicating robust revenue growth.
2. Equity and Liabilities: The data shows stable interest expenses around ₹778 crore in FY 24, suggesting consistent financial management and borrowing.
3. Profitability: Operating Profit Margin (OPM) remained strong, slightly fluctuating between 28% in FY 22, 26% in FY 23, and 27% in FY 24, reflecting steady operational efficiency.
4. Earnings per Share (EPS): EPS increased from ₹104 in FY 22 to ₹115 in FY 23, and further to ₹126 in FY 24, indicating strong profit growth per share.
5. Return on Net Worth (RoNW): While specific RoNW figures are not provided, the increasing net profit from ₹38,449 crore in FY 22 to ₹46,099 crore in FY 24 suggests a positive impact on RoNW, indicating better returns on shareholders’ equity.
6. Financial Position: The company’s financial position strengthened with EBITDA increasing from ₹57,075 crore in FY 22 to ₹68,718 crore in FY 24, showcasing robust financial health and effective management.
Tata Consultancy Services Ltd Financial Analysis
| FY 24 | FY 23 | FY 22 | |
| Sales | 2,40,893 | 2,25,458 | 1,91,754 |
| Expenses | 1,76,597 | 1,66,199 | 1,38,697 |
| Operating Profit | 64,296 | 59,259 | 53,057 |
| OPM % | 27 | 26 | 28 |
| Other Income | 3,464 | 3,449 | 4,018 |
| EBITDA | 68,718 | 62,708 | 57,075 |
| Interest | 778 | 779 | 784 |
| Depreciation | 4,985 | 5,022 | 4,604 |
| Profit Before Tax | 61,997 | 56,907 | 51,687 |
| Tax % | 26 | 26 | 26 |
| Net Profit | 46,099 | 42,303 | 38,449 |
| EPS | 126 | 115 | 104 |
| Dividend Payout % | 57.99 | 99.84 | 41.5 |
* Consolidated Figures in Rs. Crores
Tata Consultancy Services Company Metrics
Tata Consultancy Services Ltd’s market capitalization is ₹1,503,333.45 crore. The book value is ₹250 per share, with a face value of ₹1 per share. The company has a total debt of ₹8,021 crore, an ROE of 50.3%, and a quarterly EBITDA of ₹17,624 crore.
Market Capitalization: Market Capitalization represents the total market value of TCS’s outstanding shares, amounting to ₹1,503,333.45 crore.
Book Value: The book value per share of Tata Consultancy Services is ₹250 indicating the value of the company’s net assets divided by its shares outstanding.
Face Value: The face value of TCS’s shares is ₹1, which is the nominal value of each share as stated on the share certificate.
Asset Turnover Ratio: The Asset Turnover Ratio of 1.7 measures how efficiently TCS uses its assets to generate sales revenue or sales income.
Total Debt: The Total Debt of TCS stands at ₹8,021 crore, representing the total amount of money the company owes to creditors.
Return on Equity (ROE): The ROE of 50.3% measures TCS’s profitability by revealing how much profit the company generates with the money shareholders have invested.
EBITDA (Q): The quarterly EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of TCS is ₹17,624 crore, indicating the company’s operating performance.
Dividend Yield: The dividend yield of 1.76% shows the annual dividend payment as a percentage of TCS’s current share price, indicating the return on investment from dividends alone.
Tata Consultancy Services Stock Performance
Tata Consultancy Services Ltd delivered returns of 22.6% in one year, 8.14% over three years, and 13.5% over five years. This steady performance highlights the company’s ability to provide consistent returns to investors across various investment periods.
| Period | Return on Investment (%) |
| 1 Year | 22.6 |
| 3 Years | 8.14 |
| 5 Years | 13.5 |
Example: If an investor had invested ₹1,000 in Tata Consultancy Services’ stock:
1 year ago, their investment would be worth ₹1,226.
3 years ago, their investment would have grown to ₹1,081.
5 years ago, their investment would have increased to approximately ₹1,13
Tata Consultancy Services Ltd Peer Comparison
Tata Consultancy Services Ltd, with a CMP of ₹4,229 and a P/E ratio of 32, has a market cap of ₹15,29,999 Cr and a one-year return of 23%. Compared to peers like Infosys (29% return) and HCL Technologies (36% return), TCS demonstrates strong but varied performance within the IT sector.
| Name | CMP Rs. | P/E | Mar Cap Rs.Cr. | 1Yr return % | Vol 1d | 1mth return % | From 52w high | Down % | 6mth return % |
| TCS | 4,229 | 32 | 15,29,999 | 23 | 1472138 | 7.77 | 0.95 | 4.57 | 2.62 |
| Infosys | 1,771 | 28 | 7,35,220 | 29 | 45,32,160 | 7.14 | 0.93 | 6.95 | 5.4 |
| HCL Technologies | 1,590 | 26 | 4,31,459 | 36 | 21,66,976 | 5.16 | 0.94 | 6.33 | -4.62 |
| Wipro | 491 | 23 | 2,56,973 | 19 | 33,13,816 | -8.01 | 0.85 | 15.29 | -2.02 |
| LTIMindtree | 5,374 | 35 | 1,59,150 | 5 | 337492 | -0.63 | 0.83 | 16.59 | -2.59 |
| Tech Mahindra | 1,507 | 59 | 1,47,344 | 23 | 1589390 | 3.16 | 0.96 | 3.97 | 14.25 |
| Persistent Sys | 4,699 | 62 | 72,389 | 92 | 3,39,202 | 1.75 | 0.95 | 5.35 | 7.97 |
TCS Shareholding Pattern
Tata Consultancy Services Ltd’s shareholding pattern showed slight changes from December 2023 to June 2024. Promoter holdings remained stable at 71.77%. FII holdings slightly decreased from 12.46% to 12.35%, while DII holdings increased from 10.08% to 11.06%. Retail and others’ shares remained relatively stable.
| Jun-24 | Mar-24 | Dec-23 | |
| Promoters | 71.77 | 71.77 | 72 |
| FII | 12.35 | 12.7 | 12.46 |
| DII | 11.06 | 10.67 | 10.08 |
| Retail & others | 4.82 | 4.86 | 5.03 |
Tata Consultancy Services History
Tata Consultancy Services Limited (TCS) is a leading global IT services and consulting company. It offers a wide range of services across various sectors, including banking, finance, healthcare, retail, and manufacturing. TCS has established itself as a pioneer in digital transformation and technology-led business solutions.
The company’s product portfolio is diverse, featuring solutions like TCS BaNCS for banking, TCS ADD for life sciences, and TCS CHROMA for human resources. These products cater to specific industry needs and demonstrate TCS’s expertise in developing innovative technological solutions.
TCS’s service offerings encompass cloud computing, cognitive business operations, cybersecurity, and data analytics. The company has strategic partnerships with major cloud providers like AWS, Google Cloud, and Microsoft, enabling it to deliver comprehensive cloud solutions to its clients. This wide range of services positions TCS as a one-stop solution for businesses’ digital needs.
How To Invest In Tata Consultancy Services Ltd Share?
To invest in Tata Consultancy Services Ltd shares, begin by opening a demat account with Alice Blue. Complete the necessary KYC process and fund your account with the desired investment amount.
Research the company’s fundamentals, financial performance, and market trends before making an investment decision. Use the trading platform provided by the broker to place a buy order for TCS shares at your preferred price.
Monitor your investment regularly and stay informed about company news and market developments. Consider setting up a systematic investment plan (SIP) for long-term investing in the stock if it aligns with your financial goals.
Tata Consultancy Services Limited Fundamental Analysis – FAQs
Fundamental analysis of Tata Consultancy Services examines key financial metrics: Market Cap (₹1,503,333.45 crore), PE Ratio (32.75), Debt to Equity (8.78), and Return on Equity (50.3%). These indicators provide insights into the company’s financial health, market valuation, and overall performance in the IT services sector.
The market capitalization of Tata Consultancy Services Ltd is ₹1,503,333.45 crore. This figure represents the total value of the company’s outstanding shares in the stock market, calculated by multiplying the current share price by the total number of shares outstanding.
Tata Consultancy Services Limited is India’s largest IT services company. It provides a wide range of IT services, consulting, and business solutions to clients across various industries globally. TCS is known for its digital transformation services and innovative technology solutions.
Tata Consultancy Services is a public limited company, part of the Tata Group. While the Tata Group, through its holding companies, owns a significant stake, TCS is a listed company with multiple shareholders including institutional investors and public shareholders.
The main shareholders of Tata Consultancy Services include Tata Sons (the holding company of Tata Group) as the majority stakeholder, along with institutional investors (both domestic and foreign), mutual funds, and public shareholders. For the most current shareholding information, refer to the latest pattern disclosed by the company.
Tata Consultancy Services operates in the Information Technology (IT) services industry. It specializes in providing IT consulting, software development, and business process outsourcing services to clients across various sectors globally. TCS is a key player in the digital transformation landscape.
To invest in Tata Consultancy Services shares, open a demat account with Alice Blue. Complete the KYC process and fund your account. Research the company thoroughly, then use the trading platform to place a buy order for the desired number of shares at your preferred price.
Determining if Tata Consultancy Services is overvalued or undervalued requires a comprehensive analysis of its financials, growth prospects, industry trends, and market conditions. Investors should consider metrics like the P/E ratio, and PEG ratio, and compare them with industry peers and historical values for a balanced assessment.
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