TCS Tata Consultancy Services| Fundamental Analysis

About Tata Consultancy Services

TCS is the Largest Information Technology company in India. It is a part of Tata Group company. The company involves in IT Services, consulting business. 

The company offers services in different industries like Banking & Financial services, consumer Goods & Distribution. Communication, Media & Technology, Energy, Insurance, Manufacturing Retail, and many more. 

You name the services TCS is there to provide solutions to you.

In India, All the Government online Exam is Conducted By TCS.

Fundamental Analysis Of TCS

TCS is one of the largest  IT companies in India with a market capitalization of 1,171,656 Crore.

The Compay has nearly Zero Debt.

The ROCE and ROE of the company are 48.9% and 39.1% respectively which is very Good. In comparison to Peer also. 

The company has had a staggering 35 % return on equity for 5 Years. Which is a good indicator.

The company has a Book Value of ₹ 243 and its Price to book value is 13.6. Which makes the company valuation High. 

The price to Earning Ratio of the company is 33 which is nearly equal to the industry PE of the company. From this, we can say that stock is not costly as compared to Industries.

The largest shareholder of the company is Tata Sons Private Ltd. it is nearly 72.19%. Which is a GOOD sign for the company. 

The company has given a 21% CAGR( Compounded Annual Growth Rate) For 10 Years in Stock Price. 

3 Year Sale Growth of the company is 10% Compounded Growth. 

If You Look at the Balance sheet of the company you will Find the reserve of the company is consistently Growing over the Years. 

If you look at the Cashflow of the company You will that Operating cash is positive and Investing and Financing activity is Negative which is Good. 

Shareholding pattern of the company Gives the company strength for strong Management. 

If you look at the community sentiments most people have recommended buying TCS for investments. 

Important Ratios Analysis

Ratio20212020How to select
Price to Earnings Ratio36.6521.19>10, Also compare with Peer company and Industries
Price to Book Value13.608.13< 1.5 Is Good, Ignore For technology Companies
Return on Equity37.5238.44Higher the Better, Look for a company whose ROE >20
Net Profit Margin19.83%20.67%Higher the Better
Current Ratio2.913.33>1
Debt to Equity Ratio00<0.5
3 Years Sale Growth15.48%15.35Higher the better
3 Year Profit Growth12.1710.95Higher the better

About Chairman

Natrajan Chandrasekaran Is the Chairman of the company. He is also the chairman of the Board of Tata Group. 

In October 2016 he joined the Company as the Board of Tata Sons and one year later he was appointed as the chairman.

He has given his long 30 Years at TCS. He was born in 1963 and Lives in Mumbai with his Wife.

Additional Information 

Tata Consultancy Services is the Largest Recruiter in India. After India Railway TCS has the Largest Number of Employees.

Download Company Latest Annual Letter Form Here

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