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

With Tata Consultancy Services Limited's revenues expected to fall below the previous year's, investors are likely to approach the stock with caution. Declining revenues can negatively affect profitability, which makes it harder for the company to maintain investor confidence and perform well in the market.

Financial Ratios:

currentRatio 2.433000
forwardPE 20.769379
debtToEquity 10.173000
earningsGrowth 0.014000
revenueGrowth 0.024000
grossMargins 0.390740
operatingMargins 0.251830
trailingEps 136.620000
forwardEps 154.680000

TCS's current ratio of 2.433 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.
Tata Consultancy Services Limited's Forward PE is at a healthy level, meaning the stock price is aligned favorably with earnings. This suggests that the stock isn't overpriced, providing room for growth and making it an appealing option for investors looking to capitalize on potential future gains.
TCS's low Debt-to-Equity ratio indicates the company is not over-leveraged. This suggests a balanced financial structure with limited reliance on debt, which reduces financial risk and enhances its stability, making TCS's financial position more secure and appealing to investors.
Tata Consultancy Services Limited's positive gross and operating margins indicate healthy profitability. These margins reflect the company's ability to generate income efficiently from its operations, signaling strong financial performance and effective cost management.
TCS's forward EPS surpassing its trailing EPS signals projected growth in profitability, with the company expected to perform better this year. This forecast suggests that TCS's earnings will improve compared to the previous financial year, highlighting optimism in its financial outlook.

Price projections:

Price projections for TCS
Price projections for TCS

Price projections for TCS have been revised lower over time, signaling a more cautious outlook from analysts. The gradual downward trend indicates that expectations for the company's growth may be softening.

Recommendation changes over time:

Recommendations trend for TCS
Recommendations trend for TCS


Analysts are favoring TCS with a buy bias, highlighting the stock's potential as a solid investment. This recommendation might drive more investors to consider TCS as a secure and profitable option for their money, contributing to a broader positive sentiment in the market.