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| 27 November, 2020, 05:39 AM IST | E-Paper
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Tata Consultancy Services Ltd.

  • 2,720.6019.30 (0.71%)
  • Volume: 23,41,099
  • Closed
  • Last Updated On: 26 Nov, 2020, 04:02 PM IST
  • Overview
  • News
  • Financials
  • Technicals
  • Peers
  • Shareholdings
  • MF
  • F&O
  • Corporate Actions
  • About

Insights

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  • The second quarter results were better than expected. The recovery in verticals was across the board, with BFSI, retail and life science witnessing a rebound.

  • The expansion in margin seen in the second quarter would be reverting back as part of the salary hike gets implemented in the third quarter. Further, as travelling expenses start to come back on the expense sheet, these gains might get squeezed.

  • As with other IT companies, everyone would be watching with interest what the new US administration would be doing on the H1-B visa issue, which was squeezed by the earlier administration, even though the IT sector has learnt to live with the changes.

  • Given the abundant liquidity in the global markets, there is little scope for any strong gains in US dollar terms. So, this currency impact might be missing for some time.

InsightsTata Consultancy Services Ltd.

  • Strong comeback

    The second quarter results were better than expected. The recovery in verticals was across the board, with BFSI, retail and life science witnessing a rebound.

  • Margin expansion

    The expansion in margin seen in the second quarter would be reverting back as part of the salary hike gets implemented in the third quarter. Further, as travelling expenses start to come back on the expense sheet, these gains might get squeezed.

  • White House factor

    As with other IT companies, everyone would be watching with interest what the new US administration would be doing on the H1-B visa issue, which was squeezed by the earlier administration, even though the IT sector has learnt to live with the changes.

  • Currency gains

    Given the abundant liquidity in the global markets, there is little scope for any strong gains in US dollar terms. So, this currency impact might be missing for some time.

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Key Metrics

  • PE Ratio

    PE Ratio

    This is a ratio arrived at by dividing the current market price of a stock by its latest (annual or annualized) earnings per share. Here we have taken the TTM (trailing twelve months) adjusted earnings per share.

    (x)
    33.31
  • EPS - TTM

    EPS - TTM

    Earnings per share (TTM) tells the profit after tax earned on a per share basis by a stock over the last twelve months or four quarters.

    (₹)
    81.68
  • MCap

    MCap

    MCap or Market capitalization of a stock is calculated by multiplying the total number of shares outstanding of that particular stock with its current market price.

    (₹ Cr.)
    10,20,874
  • Sectoral MCap Rank

    Sectoral MCap Rank

    This is the ranking of a company within its sector based on MCap or Market capitalization. Higher the market capitalization of a company, higher the rank it is assigned.

    1
  • PB Ratio

    PB Ratio

    Price to Book represents the ratio of current market price of a stock to its book value per share. The book value itself is arrived at by dividing the net worth of a company by the total number of shares outstanding of the company at that time.

    (x)
    12.04
  • Div Yield

    Dividend Yield

    Dividend Yield calculates the amount of full year dividend declared by a company as a percentage of the current market price of a stock. All other things being equal, higher the dividend yield of the stock, the better it is for investors.

    (%)
    2.68
  • Face Value

    Face Value

    Face value of a stock is the value ascribed to the stock as per the balance sheet of the company. The dividend declared by a company is usually declared as a percentage of face value.

    (₹)
    1.00
  • Beta

    Beta

    1 Month0.04
    3 Months0.33
    6 Months0.40
    1 Year0.40
    3 Years0.31

    0.04
  • VWAP

    VWAP

    Volume Weighted Average Price represents the average price of a security over a particular time period (example one trading day) weighted by the volume traded at each price point.

    (₹)
    2,703.16
  • 52W H/L

    52W H/L

    This represents the 52 week high and low price of the security. It is also the 1 year high and low of the security. This represents the highest and lowest price touched by the security during the past 52 weeks or 1 year including today.

    (₹)
    2,885.00 / 1,506.05

Returns

  • 1 Day0.71%
  • 1 Week3.17%
  • 1 Month1.21%
  • 3 Months20.73%
  • 1 Year32.93%
  • 3 Years102.42%
  • 5 Years131.98%

Financials

  • Income (P&L)
  • Balance Sheet
  • Cash Flow
  • Ratios
  • MD&A
  • Insights

    • Employee & Interest Expense

      Company has spent less than 1% of its operating revenues towards interest expenses and 54.76% towards employee cost in the year ending Mar 31, 2020. (Source: Consolidated Financials)
    Quarterly | AnnualSep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income41,049.0038,920.0040,684.0040,672.0040,338.00
    Total Income Growth (%)5.47-4.340.030.831.23
    Total Expenses30,838.0029,274.0029,921.0029,880.0029,616.00
    Total Expenses Growth (%)5.34-2.160.140.892.29
    EBIT10,211.009,646.0010,763.0010,792.0010,722.00
    EBIT Growth (%)5.86-10.38-0.270.65-1.59
    PAT7,475.007,008.008,049.008,118.008,042.00
    PAT Growth (%)6.66-12.93-0.850.95-1.09
    EBIT Margin (%)24.8824.7826.4626.5326.58
    Net Profit Margin (%)18.2118.0119.7819.9619.94
    Basic EPS (₹)20.0118.8021.4521.6321.43
    Quarterly | AnnualSep 2020Jun 2020Mar 2020Dec 2019Sep 2019
    Total Income35,099.0032,330.0035,255.0034,246.0035,025.00
    Total Income Growth (%)8.56-8.302.95-2.220.47
    Total Expenses25,252.0023,769.0024,693.0024,272.0024,057.00
    Total Expenses Growth (%)6.24-3.741.730.891.80
    EBIT9,847.008,561.0010,562.009,974.0010,968.00
    EBIT Growth (%)15.02-18.955.90-9.06-2.33
    PAT7,448.006,096.008,227.007,683.008,636.00
    PAT Growth (%)22.18-25.907.08-11.04-0.90
    EBIT Margin (%)28.0526.4829.9629.1231.31
    Net Profit Margin (%)21.2218.8623.3422.4324.66
    Basic EPS (₹)19.8616.2621.9220.4723.02
    Quarterly | Annual FY 2020 FY 2019 FY 2018 FY 2017 FY 2016
    Total Revenue1,61,541.001,50,774.001,26,746.001,22,187.001,11,730.00
    Total Revenue Growth (%)7.1418.963.739.3614.15
    Total Expenses1,19,293.001,09,211.0092,654.0087,674.0079,890.00
    Total Expenses Growth (%)9.2317.875.689.7410.85
    Profit after Tax (PAT)32,340.0031,472.0025,826.0026,289.0024,270.00
    PAT Growth (%)2.7621.86-1.768.3222.25
    Operating Profit Margin (%)27.5028.5127.7329.2829.33
    Net Profit Margin (%)20.6021.4820.9722.2822.33
    Basic EPS (₹)86.1983.05134.19133.41123.18
    Quarterly | Annual FY 2020 FY 2019 FY 2018 FY 2017 FY 2016
    Total Revenue1,39,388.001,30,797.001,03,159.0097,261.0089,621.00
    Total Revenue Growth (%)6.5726.796.068.5214.83
    Total Expenses97,397.0090,092.0071,228.0067,195.0060,282.00
    Total Expenses Growth (%)8.1126.486.0011.4711.59
    Profit after Tax (PAT)33,260.0030,065.0025,241.0023,653.0023,075.00
    PAT Growth (%)10.6319.116.712.5019.83
    Operating Profit Margin (%)32.5433.1832.8232.4534.18
    Net Profit Margin (%)25.3324.4025.9225.5126.87
    Basic EPS (₹)88.6479.34131.15120.04117.11

    All figures in Rs Cr, unless mentioned otherwise

  • Insights

    • All Debts Paid-off

      Company has become debt free for the first time since last 5 years. (Source: Consolidated Financials)
    Annual FY 2020 FY 2019 FY 2018 FY 2017 FY 2016
    Total Assets1,20,899.001,14,943.001,06,296.001,03,252.0089,096.00
    Total Assets Growth (%)5.188.132.9515.8920.95
    Total Liabilities36,150.0025,044.0020,766.0016,672.0017,669.00
    Total Liabilities Growth (%)44.3520.6024.56-5.64-19.31
    Total Equity84,749.0089,899.0085,530.0086,580.0071,427.00
    Total Equity Growth (%)-5.735.11-1.2121.2137.99
    Current Ratio (x)3.334.174.565.534.06
    Total Debt to Equity (x)0.000.000.000.000.00
    Contingent Liabilities4,387.004,516.004,088.008,095.00-
    Annual FY 2020 FY 2019 FY 2018 FY 2017 FY 2016
    Total Assets1,04,975.0099,500.0091,056.0089,758.0077,417.00
    Total Assets Growth (%)5.509.271.4515.9422.76
    Total Liabilities30,607.0020,602.0015,190.0011,736.0012,404.00
    Total Liabilities Growth (%)48.5635.6329.43-5.39-29.72
    Total Equity74,368.0078,898.0075,866.0078,022.0065,013.00
    Total Equity Growth (%)-5.744.00-2.7620.0143.15
    Current Ratio (x)3.304.184.856.404.72
    Total Debt to Equity (x)0.000.000.000.000.00
    Contingent Liabilities6,100.004,721.008,355.0010,149.0019,695.42

    All figures in Rs Cr, unless mentioned otherwise

  • Annual FY 2020 FY 2019 FY 2018 FY 2017 FY 2016
    Net Cash flow from Operating Activities32,369.0028,593.0025,067.0025,223.0019,109.00
    Net Cash used in Investing Activities8,565.001,596.002,886.00-16,732.00-5,150.00
    Net Cash flow from Financing Activities-39,915.00-27,897.00-26,885.00-11,026.00-9,666.00
    Net Cash Flow1,422.002,341.001,286.00-2,698.004,433.00
    Closing Cash & Cash Equivalent8,646.007,224.004,883.003,597.006,295.00
    Closing Cash & Cash Equivalent Growth (%)19.6847.9435.75-42.86238.10
    Total Debt/ CFO (x)0.000.000.010.010.01
    Annual FY 2020 FY 2019 FY 2018 FY 2017 FY 2016
    Net Cash flow from Operating Activities26,603.0023,998.0021,587.0023,132.0017,986.00
    Net Cash used in Investing Activities12,829.005,883.005,634.00-15,782.00-4,518.00
    Net Cash flow from Financing Activities-39,045.00-27,825.00-26,827.00-10,891.00-9,586.00
    Net Cash Flow525.002,049.00488.00-3,593.003,922.00
    Closing Cash & Cash Equivalent3,852.003,327.001,278.00790.004,383.00
    Closing Cash & Cash Equivalent Growth (%)15.78160.3361.77-81.98919.82
    Total Debt/ CFO (x)0.000.000.010.010.01

    All figures in Rs Cr, unless mentioned otherwise

  • Annual FY 2020 FY 2019 FY 2018 FY 2017 FY 2016
    Return on Equity (%)38.4435.1830.3330.4934.14
    Return on Capital Employed (%)46.0044.9738.5938.9243.34
    Return on Assets (%)26.7427.3824.2925.4627.24
    Interest Coverage Ratio (x)46.72210.91656.621,079.53965.85
    Asset Turnover Ratio (x)129.81127.42115.81114.25121.94
    Price to Earnings (x)21.1423.8721.1018.2520.45
    Price to Book (x)8.138.396.395.566.97
    EV/EBITDA (x)14.4516.8414.8713.0114.50
    EBITDA Margin (%)29.7529.9129.3730.9631.07
    Annual FY 2020 FY 2019 FY 2018 FY 2017 FY 2016
    Return on Equity (%)44.7238.1033.2730.3135.49
    Return on Capital Employed (%)52.7950.7141.5038.0544.40
    Return on Assets (%)31.6830.2127.7226.3529.80
    Interest Coverage Ratio (x)57.52240.441,065.371,880.132,257.85
    Asset Turnover Ratio (x)125.08123.78106.91103.26110.91
    Price to Earnings (x)20.5825.0021.6020.2821.51
    Price to Book (x)9.199.517.176.147.62
    EV/EBITDA (x)14.9417.4016.1015.0915.94
    EBITDA Margin (%)34.6034.5734.5234.1535.88
  • MANAGEMENT DISCUSSION AND ANALYSIS (FY 2019-20)

    • Adding to the manpower pool

      In FY 2020, TCS reimagined the fresher on boarding process. In a departure from the past, where campus recruits used to be on boarded in batches staggered across the entire year, TCS on boarded all campus recruits, adding up to over 30,000 trainees, in just the first two quarters of the year.

    • Currency currents

      Movements in currency exchange rates through the year resulted in a positive impact of 0.1% on the reported revenue. The constant currency revenue growth for the year, which is the reported revenue growth stripped of the currency impact, was 7.1%.

    • Increasing demand from digitization

      Demand is expected to increase for services around digital channels, collaboration and workplace transformation, online learning and workforce analytics. Companies are also expected to invest more towards building operational resilience, leveraging analytics, intelligent automation, cloud and cyber security. This is expected to accelerate the adoption of TCS’ Location Independent Agile and Machine First Delivery Model. Increased M&A activity in certain sectors are expected to result in integration and transitional service opportunities for TCS.

Financial InsightsTata Consultancy Services Ltd.

  • Income (P&L)
  • Balance Sheet
    • Employee & Interest Expense

      Company has spent less than 1% of its operating revenues towards interest expenses and 54.76% towards employee cost in the year ending Mar 31, 2020. (Source: Consolidated Financials)

    • All Debts Paid-off

      Company has become debt free for the first time since last 5 years. (Source: Consolidated Financials)

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Technicals

  • Buy / Sell Signals
  • Price Analysis
  • Pivot Levels & ATR
  • Chart
  • Bullish / Bearish signals for Tata Consultancy Services Ltd. basis selected technical indicators and moving average crossovers.

    Heikin-Ashi Changeover

    Bearish indication on daily chart

    • Prev. Close Price

      2704.39

    • LTP

      2720.60

    Formed on:26 Nov 2020

    On daily price chart, Heikin-Ashi candle changed from Green to Red

    MACD Crossover

    Bullish signal on daily chart

    Appeared on: 24 Nov 2020

    Region: Positive

    Last 4 Buy Signals:1 Oct 2020
    Date10 days Gain/Loss %
    1 Oct 202014.33%
    4 Sep 20209.48%
    7 Aug 20201.29%
    30 Jul 20202.43%

    Average price gain of 3.21% within 10 days of Bullish signal in last 10 years

  • 47%
    Positive Movement since
    1st Jan 2005 on basis
    52%
    Negative Movement since
    1st Jan 2005 on basis
    Exclude
  • Pivot Levels

    R1R2R3PIVOTS1S2S3
    Classic2741.032761.472812.422710.522690.082659.572608.62

    Average True Range

    5 DAYS14 DAYS28 DAYS
    ATR49.9355.3659.27

Peer Comparison

  • Stock Performance
  • Ratio Performance
  • Insights

    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of 102.59% as compared to Nifty 100 which gave a return of 19.96%. (as of last trading session)
    • Stock Returns vs Nifty IT

      Stock generated 102.59% return as compared to Nifty IT which gave investors 91.98% return over 3 year time period. (as of last trading session)
    • 1D
    • 1W
    • 1M
    • 3M
    • 6M
    • 1Y
    • 5Y
  • Insights

    • Stock Returns vs Nifty 100

      Stock gave a 3 year return of 102.59% as compared to Nifty 100 which gave a return of 19.96%. (as of last trading session)
    • Stock Returns vs Nifty IT

      Stock generated 102.59% return as compared to Nifty IT which gave investors 91.98% return over 3 year time period. (as of last trading session)

    Ratio Performance

    NAMEP/E (x)P/B (x)ROE %ROCE %ROA %Rev CAGR [3Yr]OPMNPMBasic EPSCurrent RatioTotal Debt/ Equity (x)Total Debt/ CFO (x)
    TCS33.318.1338.4446.0026.749.6527.5020.6786.193.330.000.00
    Infosys26.554.1525.3530.8317.889.2624.4218.3238.972.620.000.00
    HCL Tech18.752.3121.5624.4713.3313.4320.4915.6440.751.620.090.35
    Wipro21.042.0317.5721.7611.963.1921.2315.9716.672.400.110.58
    Tech Mahindra20.782.2618.4819.8810.798.2714.2510.5846.212.120.110.56
    Add More
    Annual Ratios (%)

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      Peers InsightsTata Consultancy Services Ltd.

      • Stock Returns vs Nifty 100

        Stock gave a 3 year return of 102.59% as compared to Nifty 100 which gave a return of 19.96%. (as of last trading session)

      • Stock Returns vs Nifty IT

        Stock generated 102.59% return as compared to Nifty IT which gave investors 91.98% return over 3 year time period. (as of last trading session)

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      Shareholding Pattern

      • QOQ Change
      • Total Shareholdings
      • Showing Shareholding as on 30 Sep 2020
        Category31 Dec 201931 Mar 202030 Jun 202030 Sep 2020
        Promoters72.0572.0572.0572.05
        Pledge2.942.942.942.94
        FII15.9015.7415.8516.00
        DII8.038.018.037.86
        Mutual Funds2.702.552.512.84
        Others4.024.204.074.09
      • Showing Shareholding as on 30 Sep 2020
        CategoryNo. of SharesPercentage% Change QoQ
        Promoters2,70,35,42,00072.05 %0.00
        Pledge7,96,04,9302.94 %0.00
        FII60,03,69,21916.00 %0.15
        DII29,46,02,5477.86 %-0.17
        MF10,64,48,8232.84 %0.33
        Others15,38,70,9404.09 %0.02

      MF Ownership

      • Equity: Large Cap
        • 4,126.40

          Amount Invested (in Cr.)

        • 5.57%

          % of AUM

        • -4.53

          % Change (MoM basis)

      • Equity: Large Cap
        • 1,987.00

          Amount Invested (in Cr.)

        • 6.47%

          % of AUM

        • -2.77

          % Change (MoM basis)

        • 1,833.68

          Amount Invested (in Cr.)

        • 8.1%

          % of AUM

        • -4.08

          % Change (MoM basis)

      MF Ownership as on 31 October 2020

      F&O Quote

      • Futures
      • Options
        • Expiry

        Price

        2,732.7525.45 (0.94%)

        OpenHighLowPrev CloseContracts TradedTurnover (₹ Lakhs)
        2,704.002,744.002,691.952,707.3011,16791,024.22

      Corporate Actions

      • Board Meeting/AGM
      • Dividends
      • Others
      • Meeting DateAnnounced onPurposeDetails
        Oct 07, 2020Oct 05, 2020Board MeetingQuarterly Results, Dividend & Buy back
        Jul 09, 2020Jun 30, 2020Board MeetingQuarterly Results & Interim Dividend
        Apr 16, 2020Apr 13, 2020Board MeetingAudited Results & Final Dividend
        Mar 10, 2020Mar 05, 2020Board MeetingInterim Dividend
        Jan 17, 2020Jan 10, 2020Board MeetingQuarterly Results & 3rd Interim Dividend
      • TypeDividendDividend per ShareEx-Dividend DateAnnounced on
        Interim1200%12.0Oct 14, 2020Sep 30, 2020
        Interim500%5.0Jul 16, 2020Jun 30, 2020
        Interim600%6.0Jun 03, 2020Apr 16, 2020
        Interim1200%12.0Mar 19, 2020Mar 11, 2020
        Interim500%5.0Jan 23, 2020Jan 10, 2020
      • All TypesEx-DateRecord DateAnnounced onDetails
        BonusMay 31, 2018Jun 02, 2018Apr 19, 2018Bonus Ratio: 1 share(s) for every 1 shares held
        BonusJun 16, 2009Jun 17, 2009Apr 20, 2009Bonus Ratio: 1 share(s) for every 1 shares held
        BonusJul 28, 2006Jul 31, 2006Apr 17, 2006Bonus Ratio: 1 share(s) for every 1 shares held

      About Tata Consultancy Services Ltd.

      Tata Consultancy Services Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1020873.78 Crore) operating in IT Software sector. Tata Consultancy Services Ltd. key Products/Revenue Segments include Information Technology & Consultancy Services which contributed Rs 97356.00 Crore to Sales Value (100.00 % of Total Sales)for the year ending 31-Mar-2018. Show More

      • Executives
      • Auditors
      • AS

        Aarthi Subramanian

        Director
        AM

        Aman Mehta

        Independent Director
        DH

        Daniel Hughes Callahan

        Independent Director
        DG

        Debashis Ghosh

        Business Head
        Show More
      • B S R & Co. LLP

      Key Indices Listed on

      Nifty 50, S&P BSE Sensex, Nifty IT, + 38 more

      Address

      9th Floor,Nirmal Building,Mumbai, Maharashtra - 400021

      TCS Share Price Update

      Tata Consultancy Services Ltd. share price moved up by 0.71% from its previous close of Rs 2,701.30. Tata Consultancy Services Ltd. stock last traded price is 2,720.60

      Share PriceValue
      Today/Current/Last2,720.60
      Previous Day2,701.30

      Trending in Markets

      DATA SOURCES: TickerPlant (for live BSE/NSE quotes service) and Dion Global Solutions Ltd. (for corporate data, historical price & volume, F&O data). Sensex & BSE Quotes and Nifty & NSE Quotes are real-time and licensed from BSE and NSE respectively. All timestamps are reflected in IST (Indian Standard Time).

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