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Tata Consultancy Services

TCS · NSE & BSE · Information Technology · IT Services

Current price

₹4,100.00

+0.50%FY24 (illustrative)

Illustrative / demo price - not live.

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About the company

India's largest IT services exporter, part of the Tata group, serving global enterprises.

Origin & history

Born in 1968 as a Tata group division to serve the group's computing needs, it became a global outsourcing pioneer.

Founded

1968

Headquarters

Mumbai

Business segments

Banking & Financial Services32.0%
Retail & Consumer13.0%
Communication & Media9.0%
Other Verticals46.0%

Competitive position (moat)

Scale, client relationships, delivery capability and the Tata brand underpin a durable services franchise.

Governance

Tata Sons is the majority promoter; strong board independence and a disciplined capital-return policy.

Promoter holding

72.3%

Institutional holding

12.0%

Why it's interesting

A high-return, cash-generative franchise with a fortress balance sheet and a strong dividend record.

What to verify

  • Demand environment in banking, financial services and retail clients
  • Attrition and talent supply
  • Order book and deal pipeline quality

Key risks

  • Global IT spending cycles and client budget cuts
  • Currency movements
  • Concentration in large legacy clients

Valuation snapshot

Market cap

₹14.8 L cr

Total value of all shares: price multiplied by shares outstanding.

P/E

28.0

Price to earnings: how much you pay per rupee of profit.

P/B

11.0

Price to book: how the price compares to net asset value per share.

EV/EBITDA

19.0

Enterprise value to operating profit: a valuation that accounts for debt and cash.

Dividend yield

1.4%

Annual dividend per share as a percentage of the price.

Profitability

Revenue

₹2,40,000 cr

EBITDA

₹64,000 cr

Net income

₹46,000 cr

EPS

₹127.00

EBITDA margin

26.7%

Net margin

19.2%

ROE

48.0%

ROCE

60.0%

Revenue growth

6.0%

Balance sheet health

Debt/equity

0.0

Total debt divided by shareholders' equity: how leveraged the company is.

Cash

₹60,000 cr

Cash and equivalents on the balance sheet.

Interest coverage

90.0

How many times operating profit covers interest expense.

Dividends & returns

Dividend yield

1.4%

Dividend yield is the annual payout as a share of the price. A higher yield can signal a mature, cash-generative business - or a falling price. Check the payout history before reading too much into it.

Growth trend

Revenue growth

6.0%

Revenue growth shows how fast the top line is expanding. Pair it with margin trends to see whether growth is turning into profit.

Ownership

Promoter holding

72.3%

Share held by the founding family or group.

Institutional holding

12.0%

Share held by mutual funds, insurers and foreign institutions.

Placeholders - verify in the shareholding pattern.

Key catalysts

  • AI-led transformation demand
  • Margin stability

Red flags

  • Slowing discretionary spend
  • Rising competition in AI services

52-week range

52-week low

₹3,300.00

Lowest price in the 52-week range.

52-week high

₹4,200.00

Highest price in the 52-week range.