X

Tata Consultancy Services Ltd. Stock Analysis

Large Cap
Evaluated by 15007 users | BSE: 532540 | NSE: TCS |
IT - Software
Established in 1968, Tata Consultancy Services a member of the Tata Group has grown to its current position as the largest IT services firm in Asia based on its record of outstanding service, collaborative partnerships, innovation, and corporate responsibility. It was founded by Jamsetji...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Tata Consultancy Services Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 41.45%38.72%39.77%42.45%36.17%37.88%31.53%29.07%34.81%36.98%
Value Creation Index 2.782.402.492.722.172.321.771.552.162.36
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 37,32548,89462,98981,80994,6481,08,6461,17,9661,23,1041,46,4631,56,949
Y-o-Y Gr. Rt.-31%28.8%29.9%15.7%14.8%8.6%4.4%19%7.2%
Adjusted EPS (Rs.) 23.2327.3135.3948.5747.0459.4363.3665.4681.1184.34
Y-o-Y Gr. Rt.-17.6%29.6%37.2%-3.2%26.3%6.6%3.3%23.9%4%
Book Value per Share (Rs.) 62.3575.3198.47125.58129.26180.25217.45223.07238.01222.21
Adjusted Net Profit 9,09510,69013,85419,02718,42923,42224,97025,06030,43731,649
Net Op. Cash Flow (Rs. Cr.) 6,6146,97711,61514,75119,36919,10925,22325,06728,59332,369
Debt to Cash Flow from Ops 0.010.020.020.020.020.010.010.0100
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Tata Consultancy Services Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 17.3%10.6%10%7.2%
Adjusted EPS 15.4%12.4%10%4%
Book Value per Share 15.211.40.7-6.6
Share Price 19.5% 13.9% 25.4% 20.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 42.3339.5340.6143.3236.9238.4931.7529.2534.8736.47
Operating Profit Margin (%) 29.6829.4728.6430.7425.8728.2427.3926.4126.9726.83
Net Profit Margin (%) 24.6922.0922.2423.4619.6921.6221.2220.420.8420.23
Debt to Equity 000.010.010.0100000
Working Capital Days 139154160151144137131130129136
Cash Conversion Cycle 25394037332639454142
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 72.05%
Institutions 23.87%
Non-Institutions 4.01%
Pledged *2.962.892.942.942.942.942.942.942.942.94
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of TCS and arrived at the following conclusion:

Past 10 year's financial track record indicates that TCS is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of TCS's performance infers:

TCS earnings have grown by 12.4%, whereas share price has appreciated 13.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of TCS share prices over the last 10 years. Here is what we found out:

TCS share price has appreciated 18.1% annually over the past ten years.

Established in 1968, Tata Consultancy Services a member of the Tata Group has grown to its current position as the largest IT services firm in Asia based on its record of outstanding service, collaborative partnerships, innovation, and corporate responsibility.

It was founded by Jamsetji Tata in 1848 and it is one of India’s most respected institutions today. Their mission reflects the Tata Group's longstanding commitment to providing excellence. To

Established in 1968, Tata Consultancy Services a member of the Tata Group has grown to its current position as the largest IT services firm in Asia based on its record of outstanding service, collaborative partnerships, innovation, and corporate responsibility.

It was founded by Jamsetji Tata in 1848 and it is one of India’s most respected institutions today. Their mission reflects the Tata Group's longstanding commitment to providing excellence. To help customers achieve their business objectives by providing innovative, best-in-class consulting, IT solutions and services, and to actively engage all stakeholders in a productive, collaborative, and mutually beneficial relationship.

TCS' ability to deliver high-quality services and solutions is unmatched. They are the world’s first organization to achieve an enterprise-wide Maturity Level 5 on both CMMI and P-CMM, using the most rigorous assessment methodology - SCAMPISM. Additionally, TCS’ Integrated Quality Management System (iQMS) integrates process, people and technology maturity through various established frameworks and practices including IEEE, ISO 9001:2000, CMMI, SW-CMM, P-CMM and 6-Sigma.

It is largest IT employer in India. It provides services to wide range of segment like banking & financial services, energy, resources & utilities, government, telecom, media & information services, etc.

TCS acquired Citigroup Global Services(CGSL), India based BPO for  $505 million. The acquisition broadened TCS’s portfolio of end-to-end IT and BPO services in the global Banking and Financial Services (BFS) sector. TCS’s enhanced scale and expertise will be providing service improvements to Citi and Citi’s customers. CGSL has more than 12,000 employees located in India and expected to generate revenues of approximately $278 million in 2008.

Tata Consultancy Services  delivers real results to global businesses, ensuring a level of certainty no other firm can match.TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development. TCS has over 143,000 of the world's best trained IT consultants in 42 countries.

Tata Consultancy Services announced the launch of TCS BaNCS Core Banking Release 12.0 at the annual flagship event for banking and capital markets, SIBOS 2011, in Toronto.

In 2014 TCS announced to set up largest Corporate Learning Center in Thiruvananthapuram with a capacity to train 50,000 IT professionals every year

Products and services offered by the company:

Technology Products –

  • Exegenix Intelligent Document Conversion Solutions
  • SupportCentral - Business Social Productivity Platform
  • TCS Digital Certification Services / Public Key Infrastructure (PKI) Suite
  • TCS Tax Mantra Integrated Tax Solution
  • TCS Data Cleansing Framework
  • TCS Business Rules Engine
  • TCS Experience Based KM (Knowledge Management)
  • TCS Call Management Solution
  • TCS Certificate Validation Server
  • TCS File Authentication Solution
  • TCS eLearning Effectiveness Measurement Solution
  • TCS Code Generator Framework
  • TCS Saakshi (Time Stamping Solution)
  • TCS Form Authentication Solution
  • TCS eVOLv Multimedia Authoring Solution
  • TCS Direct Metal Deposition CAM
  • TCS Stand Alone Post Processor
  • TCS WebFACTORe (Web-enabled Plant Maintenance Management Tool)
  • TCS Enterprise Integration and Control Environment
  • TCS SmartBox (Next Generation Industrial Controller Development Framework) 
  • TCS Sevak - Self Service Terminals
  • TCS Rapid Sigma (Six Sigma Solution for Continuous Improvement)
  • TCS Teamcenter for Medical Devices

Other Products -

  • TCS Clin-e2e
  • TCS Hospital Management Solution
  • TCS Silicone Ambulatory ECG Device and Solution
  • TCS Enterprise Integration and Control Environment Solution/ Energy and Utilities
  • TCS Bio-informatics Solution
  • VERICUT - Machine Simulation Software

Services:

IT Services-

  • Custom Application Development
  • Application Management
  • Migration & Re-engineering
  • System Integration
  • Testing
  • Performance Engineering

Infrastructure Services-

  • Infrastructure Readiness Assessment
  • IT Service Desk
  • Data Center Management
  • End User Computing Services
  • Database Services
  • Application Management Services
  • Command Center Services
  • Managed Security Services

Enterprise Solutions

  • Supply Chain Management
  • Master Data Management
  • Customer Relationship Management
  • RFID
  • Call Management
  • Oracle
  • SAP

Consulting

  • Business Consulting
  • IT Consulting
  • Business Solutions

Business Process Outsourcing

  • Customer Interaction Management (CIM)
  • Finance and Accounting
  • Human Resources Outsourcing
  • Knowledge Process Outsourcing
  • Supply Chain Management
  • Reconciliations
  • Benefits Administration
  • Payroll
  • Industry-specific Offerings

Business Intelligence & Performance Management-

  • Business Intelligence
  • Business Process Management
  • Enterprise Data Management
  • Integration Services
  • Knowledge Management / Enterprise Content Management

Engineering & Industrial Services-

  • New Product Development Solutions
  • Product Lifecycle Management
  • Plant Solutions & Services
  • Geospatial Technology Solutions
  • Industry-specific Offerings

Small and Medium Business

Subsidiaries:

TCS' directly-held subsidiaries include:

  • AP Online Limited (India)
  • C-Edge Technologies Limited (India)
  • CMC Limited (India)
  • Diligenta Limited (UK)
  • Tata Consultancy Services Canada Inc. (Canada)
  • Tata America International Corporation (USA)
  • Tata Consultancy Services Asia Pacific Pte Limited (Singapore)
  • Tata Consultancy Services Belgium S.A. (Belgium)
  • Tata Consultancy Services Deutschland GmbH (Germany)
  • Tata Consultancy Services France S.A. (France)
  • Tata Consultancy Services Netherlands B.V. (Netherlands)
  • Tata Consultancy Services Sverige AB (Sweden)
  • Tata Consultancy Services Switzerland Ltd (Switzerland)
  • Tata Infotech (Singapore) Pte. Limited * (Singapore)
  • Tata Infotech Deutschland GmbH * (Germany)
  • TCS FNS Pty. Limited (Australia)
  • TCS Iberoamerica S.A. (Uruguay)
  • WTI Advanced Technology Limited (India)

TCS' indirectly held subsidiaries include:

  • CMC Americas Inc. (USA)
  • Swedish Indian IT Resources AB (Sweden)
  • Tata Information Technology (Shanghai) (China)
  • Tata Consultancy Services Solution Center S.A. (Uruguay)
  • TCS Argentina S.A. (Argentina)
  • TCS Brazil S/C Limitada (Brazil)
  • Tata Consultancy Services de Mexico S.A. De. C.V. (Mexico)
  • TCS Inversiones Chile Limitada (Chile)
  • Tata Consultancy Services de Espana S.A. (Spain)
  • Tata Consultancy Services Do Brasil S.A. (Brazil)
  • Tata Consultancy Services Chile S.A. (Chile)
  • TCS Italia SRL (Italy)
  • Tata Consultancy Services Japan Limited (Japan)
  • Tata Consultancy Services Malaysia SDN. BHD. (Malaysia)
  • Tata Consultancy Services Luxembourg S.A Capellen (G.D. de Luxembourg)
  • Tata Consultancy Services Portugal Unipesoal Limitada (Portugal)
  • Tata Consultancy Services Chile Limitada (Chile)
  • Comicrom S.A. (Chile)
  • Sisteco S.A. (Chile)
  • Syscrom S.A. (Chile)
  • Pentacrom S.A. (Chile)
  • Pentacrom Servicios S.A. (Chile)
  • Custodia De Documentos Intres Limitada (Chile)
  • Financial Network Services (Holdings) Pty Limited (Australia)
  • Financial Network Services Pty Limited (Australia)
  • Financial Network Services (Facilities Management) Pty Limited (Australia)
  • Financial Network Services (Europe) plc (UK)
  • Financial Network Services Malaysia Sdn Bhd (Malaysia)
  • TCS Financial Network Services (Indonesia)
  • Chong Wan Investments Limited (Hong Kong)
  • Financial Network Services (Africa) Pty Ltd. (South Africa)
  • Financial Network Services Chile Limitada (Chile)
  • Financial Network Services (H.K.) Limited (Hong Kong)

Achievements/ recognition:

  • In 2014- TCS was Honored by Lumity as the 2014 Community Corps Corporate Champion
  • TCS Wins Prestigious Association of Management Consulting Firms Award
  • TCS recognized as world’s fastest growing global IT Services brand
  • TCS UK wins Gold Award for ‘Innovation in Learning’
  • TCS is the only IT services organization to be a part of ISO 15926 real time interoperability network grid (iRING) Version 1.0.0
  • TCS achieves Gold status in Business in the Community's (BitC) Corporate Responsibility Index (CRI) 2007-08.
  • Largest IT services firm in Asia.
  • They are the world’s first organization to achieve an enterprise-wide Maturity Level 5 on both CMMI® and P-CMM®, using the most rigorous assessment methodology - SCAMPISM.
  • TCS’ Integrated Quality Management System (iQMSâ„¢) integrates process, people and technology maturity through various established frameworks and practices including IEEE, ISO 9001:2000, CMMI, SW-CMM, P-CMM and 6-Sigma.
  • TCS tops the DataQuest DQTop20 list of IT Services providers in India for 2008
  • TCS ranked among Top 25 in Business Week's 2007 Information Technology 100
  • TCS awarded top position in 2007 'Global Services' 100 ‘Top 10 Best Performing IT Services providers’ category
  • TCS was awarded the Business Process Outsourcing Service Provider 2011 at the Frost & Sullivan Asia Pacific ICT Awards ceremony hosted in Singapore.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

Callback