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's projected revenue decline from last year is likely to make investors cautious. Lower revenues often hurt a company's bottom line, leading investors to be concerned about the company's ability to maintain profitability and deliver strong financial results in the future.

Financial Ratios:

currentRatio 2.525000
forwardPE 20.571703
debtToEquity 9.444000
earningsGrowth -0.139000
revenueGrowth 0.049000
grossMargins 0.396800
operatingMargins 0.251790
trailingEps 131.880000
forwardEps 153.730590

With a current ratio 2.525, TCS demonstrates the ability to service its short-term debt without difficulty. The company's strong cash reserves and current assets ensure that it can meet its liabilities, reflecting financial stability and healthy liquidity.
TCS's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
TCS's low earnings and revenue growth suggest that the company may see declining profits. This indicates potential financial challenges ahead, and could lead to a more cautious outlook from investors.
TCS's positive gross and operating margins suggest the company is performing profitably. These margins reflect efficient cost management and strong revenue generation, signaling healthy financial performance and operational effectiveness.
Tata Consultancy Services Limited's forward EPS being higher than its trailing EPS suggests that the company is expected to generate stronger profits this year. This points to improving financial performance, with Tata Consultancy Services Limited anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for TCS
Price projections for TCS

TCS's price has continuously remained near the lower end of analysts' projections, indicating that it may be facing challenges in meeting market expectations. This trend raises concerns about the company's future growth trajectory.

Recommendation changes over time:

Recommendations trend for TCS
Recommendations trend for TCS


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