Overall Fundamental outlook

Business Operations:

Sector: Technology
Industry: Information Technology Services

Tata Consultancy Services Limited provides information technology (IT) and IT enabled services in the Americas, Europe, India, and internationally. It operates through Banking, Financial Services and Insurance; Manufacturing; Consumer Business; Communication, Media and Technology; Life Sciences and Healthcare; and Others segments. The company provides TCS ADD, a suite of technology platforms for clinical research and drug development; TCS BaNCS, a financial services platform; TCS BFSI Platforms, a cloud-native, as-a-service that helps financial institutions and insurance firms; TCS CHROMA, a cloud-based workforce management solution; customer intelligence and insight solutions; TCS ERP on Cloud, a hosted ERP applications and services platform; TCS HOBS, a cloud-native catalog-centric platform for personalization of products and processes; and ignio, an autonomous enterprise software. It also offers TCS Intelligent Urban Exchange for smart cities and enterprises solution; TCS OmniStore, a retail commerce platform; TCS Optumera, a retail-connected strategic intelligence platform; TCS TAP, a procurement offering; TCS MasterCraft, a platform of intelligent automation products; Quartz- the Smart Ledgers, a blockchain solution; Jile, an enterprise agile planning and delivery tool; TCS iON, an IT-as-a-Service model that provides business solutions; and TCS TwinX, an enterprise digital twin platform. In addition, the company offers cloud, cognitive business, consulting, cybersecurity, data and analytics, enterprise solutions, Internet of Things and digital engineering, TCS interactive, and sustainability services. It serves banking; capital markets; consumer goods and distribution; communications, media, and information services; education; energy, resources, and utilities; healthcare; high technology; insurance; life sciences; manufacturing; public services; retail; and travel and logistics industries. The company was founded in 1968 and is based in Mumbai, India. Tata Consultancy Services Limited is a subsidiary of Tata Sons Private Limited.

Revenue projections:

Revenue projections for TCS
Revenue projections for TCS

TCS is projected to see lower revenues than in the previous year, a trend that usually concerns investors. Declining revenues often harm a company's profitability, leading investors to exercise caution as they weigh the potential risks of continued financial downturns.

Financial Ratios:

currentRatio 2.321000
forwardPE 21.845293
debtToEquity 9.807000
earningsGrowth -0.017000
revenueGrowth 0.053000
grossMargins 0.383390
operatingMargins 0.242000
trailingEps 134.340000
forwardEps 154.680000

TCS's current ratio of 2.321 means the company has enough liquidity to meet its short-term debt obligations. With sufficient cash reserves and current assets, TCS can comfortably cover its liabilities, reflecting a strong financial outlook.
With TCS's Forward PE in a favorable range, the stock appears reasonably priced compared to its earnings. This suggests that it's not overpriced and there is room for growth, providing an encouraging opportunity for investors seeking future value increases.
TCS's low growth in both earnings and revenue indicates a likely decrease in profits. This suggests the company may be facing financial challenges, and investors should be cautious about its future performance.
With positive gross and operating margins, TCS demonstrates its profitability and efficiency. These metrics show that the company is managing costs well while generating strong revenue, highlighting robust financial health.
TCS's forward EPS exceeding its trailing EPS means that the company is expected to increase profitability in the current financial year. This reflects improved earnings potential, signaling that TCS is likely to outperform its previous year's financial performance.

Price projections:

Price projections for TCS
Price projections for TCS

TCS's price projections have been revised downward gradually, indicating that analysts are tempering their expectations. This downward shift suggests a more cautious outlook on the company's growth prospects.

Recommendation changes over time:

Recommendations trend for TCS
Recommendations trend for TCS


Analysts have been favoring Tata Consultancy Services Limited with a buy bias recently, signaling a promising investment opportunity. This optimistic outlook may attract more investors, positioning Tata Consultancy Services Limited as a desirable option for those seeking to invest their money in a stable, profitable company with strong growth potential.