Tata Consultancy Services Ltd.

NSE: TCS | BSE: 532540 | Industry: IT Services
₹3,815.20
+1.75%
Overview
Financials
Ratios
Valuation
Analysis
Market Cap
₹14.2T
+2.3%
Revenue (TTM)
₹1.89T
+12.5%
Net Income (TTM)
₹421.5B
+9.8%
EPS (TTM)
₹114.3
+8.7%
P/E Ratio
33.4
+5.2%
Dividend Yield
1.35%
+0.2%
Revenue Growth
Profit Margins

Company Overview

Tata Consultancy Services Limited (TCS) is a multinational information technology (IT) services and consulting company headquartered in Mumbai, Maharashtra, India. It is a subsidiary of the Tata Group and operates in 149 locations across 46 countries.

TCS is the largest Indian company by market capitalization and one of the most valuable IT services brands worldwide. The company is listed on the BSE and the NSE and is a constituent of the BSE SENSEX and NIFTY 50 indices.

Financial Statements

Income Statement (in Cr)

Metric FY 2023 FY 2022 FY 2021 Growth
Total Revenue 189,501 168,459 156,949 +12.5%
Operating Income 51,531 46,216 42,768 +11.5%
Net Income 42,147 38,449 35,468 +9.6%
EPS (₹) 114.3 104.2 96.1 +9.7%

Balance Sheet (in Cr)

Metric FY 2023 FY 2022 FY 2021 Growth
Total Assets 145,870 132,110 121,450 +10.4%
Total Liabilities 42,156 38,940 35,670 +8.3%
Shareholders' Equity 103,714 93,170 85,780 +11.3%
Cash & Equivalents 15,420 13,850 12,340 +11.3%
Profitability Ratios

Operating Margin: 27.2% (Industry Avg: 18.5%)

Net Profit Margin: 22.2% (Industry Avg: 15.8%)

ROE: 40.6% (Industry Avg: 22.3%)

ROCE: 43.8% (Industry Avg: 24.1%)

Valuation Ratios

P/E Ratio: 33.4 (Industry Avg: 28.7)

P/B Ratio: 13.7 (Industry Avg: 9.2)

P/S Ratio: 7.5 (Industry Avg: 5.8)

Dividend Yield: 1.35% (Industry Avg: 1.12%)

Liquidity Ratios

Current Ratio: 2.8 (Industry Avg: 2.1)

Quick Ratio: 2.5 (Industry Avg: 1.8)

Cash Ratio: 1.2 (Industry Avg: 0.9)

Debt to Equity: 0.08 (Industry Avg: 0.35)

Efficiency Ratios

Asset Turnover: 1.3 (Industry Avg: 0.9)

Inventory Days: 4.2 (Industry Avg: 8.5)

Receivables Days: 78.5 (Industry Avg: 85.2)

Payables Days: 32.4 (Industry Avg: 45.6)

Valuation Comparison
Price to Earnings Trend

DCF Valuation

DCF Fair Value
₹4,125
+8.1% Upside
Graham Number
₹3,240
-15.1% Downside
EBITDA Multiple
₹3,950
+3.5% Upside
Average Target
₹4,050
+6.2% Upside

Analyst Recommendations

Analyst Sentiment
Price Targets

SWOT Analysis

Strengths

• Strong brand recognition and market position

• Diverse service portfolio and global presence

• Robust financial performance and profitability

• Strong client relationships and retention

Weaknesses

• High dependency on the North American market

• Employee attrition challenges

• Limited presence in emerging markets

• Dependence on traditional IT services

Opportunities

• Growing demand for digital transformation services

• Expansion into emerging markets

• Acquisitions and partnerships in new technologies

• Increasing cloud adoption across industries

Threats

• Intense competition in the IT services industry

• Economic slowdown in key markets

• Currency fluctuation risks

• Rapid technological changes and disruption

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