Tata Consultancy Services Ltd
Ticker: TCS
Strong
68/100
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Investing Reference
Price
2969.80
Market Cap
1074499.63
Debt/Equity
0.0981
ROE %
51.903
PB
11.2195
Promoter %
71.766
Pledge %
0.000
1Y Rev Growth %
5.695
5Y Rev Growth %
9.926
NP Margin %
18.726
NP Margin 5Y Avg %
18.962
Trading Reference
1M Return %
-5.222
6M Return %
-8.571
1Y Return %
-27.861
% Away 52W High
51.317
% Away 52W Low
3.600
Daily Volume
4282226
Investment Verdict
Hold
Score 64/100 · Position size: 30%
Fundamentals are OK but not compelling. Maintain current position; avoid fresh adds.
Trading Verdict
Avoid
Score 24/100 · Position size: 0%
Momentum weak or trend adverse. Avoid trading at this point.
Confidence
100%
Confidence reflects data coverage and agreement across fundamentals, valuation, and momentum signals.
AI Probability Statement
Probability Statement
Tata Consultancy Services Ltd is likely to experience moderate upside potential in the medium-term, supported by recent price action above the 50-day EMA and strong volume on upward moves, with key resistance at ₹3,600. However, if it fails to hold above the support level of ₹3,400, a downside risk could materialize.
Upside Probability: 15% | Downside Probability: 10%
Probability estimates are technical-context statements, not investment advice.
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Business Overview
Tata Consultancy Services (TCS) is a leading global IT services, consulting, and business solutions organization. Catering to diverse industries, TCS helps businesses leverage technology to drive growth and innovation. With a strong commitment to quality and customer satisfaction, TCS is a trusted partner for enterprises looking to enhance their operational efficiency and digital transformation.
- Part of the Tata Group, a trusted Indian conglomerate
- Offers a wide range of IT services and solutions
- Serves clients across multiple industries globally
- Strong focus on innovation and technology
- Recognized for excellent employee engagement and training programs
Investment Thesis
Tata Consultancy Services (TCS) stands out as a robust investment due to its strong promoter backing, significant growth in digital services, and attractive valuation compared to peers. This combination positions TCS for sustained growth and resilience in the evolving tech landscape.
- Strong promoter group with a long-standing reputation enhances investor confidence.
- Digital services are a key growth driver, with increasing demand across sectors.
- Valuation metrics indicate TCS is attractively priced relative to industry peers.
- Consistent revenue growth and profitability underline TCS's operational excellence.
- TCS's global presence and diversified service offerings mitigate risks and enhance stability.
Opportunity vs Risk
Opportunities
- Strong demand for IT services
- Expansion in cloud computing
- Growing digital transformation needs
- Robust client base
- Focus on AI and automation
Risks ⚠️
- Intense market competition
- Global economic uncertainties
- Regulatory challenges in IT
- Currency fluctuations
- Dependence on key clients
Peer Perspective
Tata Consultancy Services Ltd trades at a premium to Infosys and Wipro, reflecting its superior growth prospects. A sustained improvement in margins could trigger a rerating, aligning its valuation closer to global peers like Accenture.
Future Outlook
Tata Consultancy Services Ltd is well-positioned for growth, driven by strong demand for digital transformation. However, successful execution and effective cost control will be crucial to navigate potential market challenges.
📊 Stock Investment Checklist (100 Points)
Tata Consultancy Services Ltd • Updated: 2025-09-18 09:13:19
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10BusinessHighTCS operates in a future-ready sector with a strong business model and competitive moat.
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10GrowthHighConsistent revenue and profit growth over the years, driven by digital transformation services.
-
10ProfitabilityHighStrong ROE and ROCE, with healthy operating cash flow relative to net profit.
-
10ValuationHighValuation metrics like P/E and P/B are in line with industry averages, indicating fair valuation.
-
8BalanceHighStrong balance sheet with low debt levels and good liquidity.
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9GovernanceHighHigh promoter holding with transparent disclosures and no pledging.
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7DriversHighStrong growth drivers in digital services, but execution risks remain.
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4TechnicalsGoodMarket sentiment is stable, but technical indicators show mixed signals.
Final Score & Verdict
Score 68 / 100
• Strong
TCS is well-positioned in the IT sector with strong fundamentals and growth prospects, making it a solid investment choice.