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Last Updated on: 01 April, 2025
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 532540 | NSE: TCS

Tata Consultancy Services Ltd: Intrinsic Value & Share Price Analysis

Share Price and Basic Stock Data

Last Updated: April 1, 2025, 9:57 pm

Market Cap 12,85,316 Cr.
Current Price 3,551
High / Low 4,592/3,457
Stock P/E26.4
Book Value 281
Dividend Yield1.55 %
ROCE64.3 %
ROE51.5 %
Face Value 1.00
PEG Ratio2.94

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Tata Consultancy Services Ltd

Competitors of Tata Consultancy Services Ltd

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
IDream Film Infrastructure Company Ltd 1.79 Cr. 120 120/89.3 2950.00 %%% 10.0
I Power Solutions India Ltd 7.42 Cr. 16.7 16.7/10.8 8.990.00 %3.67 %3.83 % 10.0
Hypersoft Technologies Ltd 8.64 Cr. 20.3 20.3/7.05 5.130.00 %8.57 %10.7 % 10.0
Sonata Software Ltd 9,786 Cr. 349 770/34222.9 53.52.27 %35.5 %30.3 % 1.00
Softtech Engineers Ltd 470 Cr. 357 612/277198 92.50.00 %6.40 %2.79 % 10.0
Industry Average156,454.08 Cr858.3442.06136.080.72%21.15%17.71%7.00

All Competitor Stocks of Tata Consultancy Services Ltd

Quarterly Result

MetricDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Sales 48,88550,59152,75855,30958,22959,16259,38159,69260,58361,23762,61364,25963,973
Expenses 35,45236,74639,34240,79342,67643,38844,38343,94644,19544,07345,95147,52846,939
Operating Profit 13,43313,84513,41614,51615,55315,77414,99815,74616,38817,16416,66216,73117,034
OPM % 27%27%25%26%27%27%25%26%27%28%27%26%27%
Other Income 1,2059817899655201,1751,3971,006-961,1579627291,243
Interest 251245199148160272163159230226173162234
Depreciation 1,1961,2171,2301,2371,2691,2861,2431,2631,2331,2461,2201,2661,377
Profit before tax 13,19113,36412,77614,09614,64415,39114,98915,33014,82916,84916,23116,03216,666
Tax % 26%25%25%26%26%26%26%26%25%26%25%25%25%
Net Profit 9,8069,9599,51910,46510,88311,43611,12011,38011,09712,50212,10511,95512,444
EPS in Rs 26.4127.1325.9028.5129.6431.1330.2631.0030.5634.3733.2832.9234.22

Last Updated: February 28, 2025, 8:01 pm

Below is a detailed analysis of the quarterly data for Tata Consultancy Services Ltd based on the most recent figures (Dec 2024) and their trends compared to the previous period:

  • For Sales, as of Dec 2024, the value is ₹63,973.00 Cr.. The value appears to be declining and may need further review. It has decreased from 64,259.00 Cr. (Sep 2024) to ₹63,973.00 Cr., marking a decrease of 286.00 Cr..
  • For Expenses, as of Dec 2024, the value is ₹46,939.00 Cr.. The value appears to be improving (decreasing) as expected. It has decreased from 47,528.00 Cr. (Sep 2024) to ₹46,939.00 Cr., marking a decrease of 589.00 Cr..
  • For Operating Profit, as of Dec 2024, the value is ₹17,034.00 Cr.. The value appears strong and on an upward trend. It has increased from 16,731.00 Cr. (Sep 2024) to ₹17,034.00 Cr., marking an increase of 303.00 Cr..
  • For OPM %, as of Dec 2024, the value is 27.00%. The value appears strong and on an upward trend. It has increased from 26.00% (Sep 2024) to 27.00%, marking an increase of 1.00%.
  • For Other Income, as of Dec 2024, the value is ₹1,243.00 Cr.. The value appears strong and on an upward trend. It has increased from 729.00 Cr. (Sep 2024) to ₹1,243.00 Cr., marking an increase of 514.00 Cr..
  • For Interest, as of Dec 2024, the value is ₹234.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 162.00 Cr. (Sep 2024) to ₹234.00 Cr., marking an increase of 72.00 Cr..
  • For Depreciation, as of Dec 2024, the value is ₹1,377.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 1,266.00 Cr. (Sep 2024) to ₹1,377.00 Cr., marking an increase of 111.00 Cr..
  • For Profit before tax, as of Dec 2024, the value is ₹16,666.00 Cr.. The value appears strong and on an upward trend. It has increased from 16,032.00 Cr. (Sep 2024) to ₹16,666.00 Cr., marking an increase of 634.00 Cr..
  • For Tax %, as of Dec 2024, the value is 25.00%. The value remains steady. There is no change compared to the previous period (Sep 2024) which recorded 25.00%.
  • For Net Profit, as of Dec 2024, the value is ₹12,444.00 Cr.. The value appears strong and on an upward trend. It has increased from 11,955.00 Cr. (Sep 2024) to ₹12,444.00 Cr., marking an increase of 489.00 Cr..
  • For EPS in Rs, as of Dec 2024, the value is 34.22. The value appears strong and on an upward trend. It has increased from 32.92 (Sep 2024) to 34.22, marking an increase of 1.30.

Overall, while many items appear to show a positive trend, any significant downward movement warrant further investigation.

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: March 6, 2025, 4:19 pm

MetricMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales 62,98981,80994,648108,646117,966123,104146,463156,949164,177191,754225,458240,893252,082
Expenses 44,95056,65770,16777,96985,65590,588106,957114,840117,631138,697166,199176,597184,491
Operating Profit 18,04025,15324,48230,67732,31132,51639,50642,10946,54653,05759,25964,29667,591
OPM % 29%31%26%28%27%26%27%27%28%28%26%27%27%
Other Income 1,1781,6373,7203,0844,2213,6424,3114,5921,9164,0183,4493,4644,091
Interest 4839104333252198924637784779778795
Depreciation 1,0801,3491,7991,8881,9872,0142,0563,5294,0654,6045,0224,9855,109
Profit before tax 18,09025,40226,29831,84034,51334,09241,56342,24843,76051,68756,90761,99765,778
Tax % 22%24%24%24%24%24%24%23%26%26%26%26%
Net Profit 14,07619,33220,06024,33826,35725,88031,56232,44732,56238,44942,30346,09949,006
EPS in Rs 35.5548.9250.6861.5866.7167.4683.8786.1987.67104.75115.19126.88134.79
Dividend Payout % 31%33%78%35%35%37%36%85%43%41%100%58%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)37.34%3.77%21.33%8.30%-1.81%21.96%2.80%0.35%18.08%10.02%8.97%
Change in YoY Net Profit Growth (%)0.00%-33.57%17.56%-13.03%-10.11%23.76%-19.15%-2.45%17.72%-8.06%-1.05%

Tata Consultancy Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:11%
5 Years:10%
3 Years:14%
TTM:6%
Compounded Profit Growth
10 Years:9%
5 Years:8%
3 Years:12%
TTM:7%
Stock Price CAGR
10 Years:11%
5 Years:16%
3 Years:-2%
1 Year:-9%
Return on Equity
10 Years:40%
5 Years:44%
3 Years:47%
Last Year:52%

Last Updated: Unknown

Balance Sheet

Last Updated: February 12, 2025, 3:47 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital 196196196197197191375375370366366362362
Reserves 38,35048,99950,43970,87586,01784,93789,07183,75186,06388,77390,05890,127101,133
Borrowings 332297358245289247628,1747,7957,8187,6888,0219,046
Other Liabilities 13,05417,33722,32516,97415,83019,75124,39327,82735,76443,96744,74746,96250,583
Total Liabilities 51,93266,82973,31888,291102,333105,126113,901120,127129,992140,924142,859145,472161,124
Fixed Assets 9,8289,54411,63811,77411,70111,97312,29020,92821,02121,29820,51519,60420,729
CWIP 1,8953,1682,7661,6701,5411,2789639069261,2051,2341,5641,500
Investments 1,8973,4341,66222,82241,98036,00829,33026,35629,37330,48537,16331,76236,081
Other Assets 38,31250,68257,25252,02547,11155,86771,31871,93778,67287,93683,94792,542102,814
Total Assets 51,93266,82973,31888,291102,333105,126113,901120,127129,992140,924142,859145,472161,124

Below is a detailed analysis of the balance sheet data for Tata Consultancy Services Ltd based on the most recent figures (Sep 2024) and their trends compared to the previous period:

  • For Equity Capital, as of Sep 2024, the value is ₹362.00 Cr.. The value remains steady. There is no change compared to the previous period (Mar 2024) which recorded 362.00 Cr..
  • For Reserves, as of Sep 2024, the value is ₹101,133.00 Cr.. The value appears strong and on an upward trend. It has increased from 90,127.00 Cr. (Mar 2024) to ₹101,133.00 Cr., marking an increase of 11,006.00 Cr..
  • For Borrowings, as of Sep 2024, the value is ₹9,046.00 Cr.. The value appears to be increasing, which may not be favorable. Additionally, since Reserves exceed Borrowings, this is considered a positive sign. It has increased from 8,021.00 Cr. (Mar 2024) to ₹9,046.00 Cr., marking an increase of 1,025.00 Cr..
  • For Other Liabilities, as of Sep 2024, the value is ₹50,583.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 46,962.00 Cr. (Mar 2024) to ₹50,583.00 Cr., marking an increase of 3,621.00 Cr..
  • For Total Liabilities, as of Sep 2024, the value is ₹161,124.00 Cr.. The value appears to be increasing, which may not be favorable. It has increased from 145,472.00 Cr. (Mar 2024) to ₹161,124.00 Cr., marking an increase of 15,652.00 Cr..
  • For Fixed Assets, as of Sep 2024, the value is ₹20,729.00 Cr.. The value appears strong and on an upward trend. It has increased from 19,604.00 Cr. (Mar 2024) to ₹20,729.00 Cr., marking an increase of 1,125.00 Cr..
  • For CWIP, as of Sep 2024, the value is ₹1,500.00 Cr.. The value appears to be declining and may need further review. It has decreased from 1,564.00 Cr. (Mar 2024) to ₹1,500.00 Cr., marking a decrease of 64.00 Cr..
  • For Investments, as of Sep 2024, the value is ₹36,081.00 Cr.. The value appears strong and on an upward trend. It has increased from 31,762.00 Cr. (Mar 2024) to ₹36,081.00 Cr., marking an increase of 4,319.00 Cr..
  • For Other Assets, as of Sep 2024, the value is ₹102,814.00 Cr.. The value appears strong and on an upward trend. It has increased from 92,542.00 Cr. (Mar 2024) to ₹102,814.00 Cr., marking an increase of 10,272.00 Cr..
  • For Total Assets, as of Sep 2024, the value is ₹161,124.00 Cr.. The value appears strong and on an upward trend. It has increased from 145,472.00 Cr. (Mar 2024) to ₹161,124.00 Cr., marking an increase of 15,652.00 Cr..

Notably, the Reserves (₹101,133.00 Cr.) exceed the Borrowings (9,046.00 Cr.), indicating a solid financial buffer.

Overall, while many items appear to show a positive trend, any significant downward movement or items where Borrowings exceed Reserves warrant further investigation.

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +11,61514,75119,36919,10925,22325,06728,59332,36938,80239,94941,96544,338
Cash from Investing Activity +-6,038-9,452-1,807-5,010-16,8953,1041,6458,968-7,956-7385486,091
Cash from Financing Activity +-5,729-5,673-17,168-9,666-11,026-26,885-27,897-39,915-32,634-33,581-47,878-48,536
Net Cash Flow-152-3743944,433-2,6981,2862,3411,422-1,7885,630-5,3651,893

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-314.00-272.00-334.00-215.00-257.00-215.00-23.0034.0039.0046.0052.0056.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days828179817074687167808181
Inventory Days
Days Payable
Cash Conversion Cycle828179817074687167808181
Working Capital Days705233626361706762363336
ROCE %52%56%50%51%44%39%47%47%49%54%59%64%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024
Promoters72.30%72.30%72.30%72.30%72.30%72.30%72.30%72.41%71.77%71.77%71.77%71.77%
FIIs14.15%13.50%13.05%12.94%12.72%12.46%12.47%12.46%12.70%12.35%12.66%12.68%
DIIs7.81%8.36%8.53%9.25%9.58%9.80%10.01%10.03%10.61%11.00%10.86%10.86%
Government0.04%0.05%0.05%0.05%0.05%0.05%0.05%0.05%0.06%0.06%0.06%0.06%
Public5.70%5.80%6.06%5.45%5.36%5.38%5.17%5.03%4.86%4.82%4.66%4.63%
No. of Shareholders24,74,31025,02,38527,03,96625,56,97024,99,38425,02,83523,67,00323,36,01622,03,20921,81,39120,93,96220,75,117

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Nifty 50 ETF18,409,8463.717187.4818,409,8462025-03-310%
SBI BSE Sensex ETF13,234,9034.365168.1618,409,8462025-03-31-28.11%
Axis ELSS Tax Saver Fund5,465,0665.752133.6418,409,8462025-03-31-70.31%
UTI Nifty 50 ETF5,320,4183.712077.1718,409,8462025-03-31-71.1%
UTI BSE Sensex ETF4,843,0074.361891.1718,409,8462025-03-31-73.69%
SBI Blue Chip Fund4,562,3313.621781.218,409,8462025-03-31-75.22%
Axis Bluechip Fund4,071,2514.61589.4818,409,8462025-03-31-77.89%
ICICI Prudential Technology Fund3,930,15512.111534.3918,409,8462025-03-31-78.65%
HDFC Balanced Advantage Fund - Regular Plan3,238,8721.411264.518,409,8462025-03-31-82.41%
Tata Digital India Fund3,183,87312.181243.0318,409,8462025-03-31-82.71%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue 1.001.001.001.001.00
Basic EPS (Rs.) 125.88115.19103.6286.7186.19
Diluted EPS (Rs.) 125.88115.19103.6286.7186.19
Cash EPS (Rs.) 141.12129.30117.6398.9995.94
Book Value[Excl.RevalReserv]/Share (Rs.) 252.26249.20245.48235.43226.00
Book Value[Incl.RevalReserv]/Share (Rs.) 252.26249.20245.48235.43226.00
Revenue From Operations / Share (Rs.) 665.45616.01523.92443.72418.53
PBDIT / Share (Rs.) 189.83171.33155.94134.27124.54
PBIT / Share (Rs.) 176.06157.61143.36123.28115.13
PBT / Share (Rs.) 171.26155.48141.22118.27112.66
Net Profit / Share (Rs.) 127.35115.58105.0588.0186.53
NP After MI And SOA / Share (Rs.) 126.82115.16104.7287.6586.24
PBDIT Margin (%) 28.5227.8129.7630.2629.75
PBIT Margin (%) 26.4525.5827.3627.7827.50
PBT Margin (%) 25.7325.2426.9526.6526.91
Net Profit Margin (%) 19.1318.7620.0519.8320.67
NP After MI And SOA Margin (%) 19.0518.6919.9819.7520.60
Return on Networth / Equity (%) 50.7346.6142.9937.5238.44
Return on Capital Employeed (%) 63.5157.6352.9147.2146.00
Return On Assets (%) 31.3429.3327.0824.8026.74
Asset Turnover Ratio (%) 1.661.581.411.181.19
Current Ratio (X) 2.452.532.562.913.33
Quick Ratio (X) 2.452.532.562.913.33
Dividend Payout Ratio (NP) (%) 54.7598.1034.7433.45116.36
Dividend Payout Ratio (CP) (%) 49.3987.6531.0129.73104.92
Earning Retention Ratio (%) 45.251.9065.2666.55-16.36
Cash Earning Retention Ratio (%) 50.6112.3568.9970.27-4.92
Interest Coverage Ratio (X) 88.3380.5072.8077.9950.54
Interest Coverage Ratio (Post Tax) (X) 61.4855.3050.0454.0336.12
Enterprise Value (Cr.) 1393389.101163072.801350886.801167058.00674600.75
EV / Net Operating Revenue (X) 5.785.167.047.114.30
EV / EBITDA (X) 20.2818.5523.6723.4914.45
MarketCap / Net Operating Revenue (X) 5.845.207.147.164.36
Retention Ratios (%) 45.241.8965.2566.54-16.36
Price / BV (X) 15.5412.9815.3513.608.13
Price / Net Operating Revenue (X) 5.845.207.147.164.36
EarningsYield 0.030.030.020.020.04

After reviewing the key financial ratios for Tata Consultancy Services Ltd, here is a detailed analysis based on the latest available data and recent trends:

  • For FaceValue, as of Mar 24, the value is 1.00. This value is within the healthy range. There is no change compared to the previous period (Mar 23) which recorded 1.00.
  • For Basic EPS (Rs.), as of Mar 24, the value is 125.88. This value is within the healthy range. It has increased from 115.19 (Mar 23) to 125.88, marking an increase of 10.69.
  • For Diluted EPS (Rs.), as of Mar 24, the value is 125.88. This value is within the healthy range. It has increased from 115.19 (Mar 23) to 125.88, marking an increase of 10.69.
  • For Cash EPS (Rs.), as of Mar 24, the value is 141.12. This value is within the healthy range. It has increased from 129.30 (Mar 23) to 141.12, marking an increase of 11.82.
  • For Book Value[Excl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 252.26. It has increased from 249.20 (Mar 23) to 252.26, marking an increase of 3.06.
  • For Book Value[Incl.RevalReserv]/Share (Rs.), as of Mar 24, the value is 252.26. It has increased from 249.20 (Mar 23) to 252.26, marking an increase of 3.06.
  • For Revenue From Operations / Share (Rs.), as of Mar 24, the value is 665.45. It has increased from 616.01 (Mar 23) to 665.45, marking an increase of 49.44.
  • For PBDIT / Share (Rs.), as of Mar 24, the value is 189.83. This value is within the healthy range. It has increased from 171.33 (Mar 23) to 189.83, marking an increase of 18.50.
  • For PBIT / Share (Rs.), as of Mar 24, the value is 176.06. This value is within the healthy range. It has increased from 157.61 (Mar 23) to 176.06, marking an increase of 18.45.
  • For PBT / Share (Rs.), as of Mar 24, the value is 171.26. This value is within the healthy range. It has increased from 155.48 (Mar 23) to 171.26, marking an increase of 15.78.
  • For Net Profit / Share (Rs.), as of Mar 24, the value is 127.35. This value is within the healthy range. It has increased from 115.58 (Mar 23) to 127.35, marking an increase of 11.77.
  • For NP After MI And SOA / Share (Rs.), as of Mar 24, the value is 126.82. This value is within the healthy range. It has increased from 115.16 (Mar 23) to 126.82, marking an increase of 11.66.
  • For PBDIT Margin (%), as of Mar 24, the value is 28.52. This value is within the healthy range. It has increased from 27.81 (Mar 23) to 28.52, marking an increase of 0.71.
  • For PBIT Margin (%), as of Mar 24, the value is 26.45. This value exceeds the healthy maximum of 20. It has increased from 25.58 (Mar 23) to 26.45, marking an increase of 0.87.
  • For PBT Margin (%), as of Mar 24, the value is 25.73. This value is within the healthy range. It has increased from 25.24 (Mar 23) to 25.73, marking an increase of 0.49.
  • For Net Profit Margin (%), as of Mar 24, the value is 19.13. This value exceeds the healthy maximum of 10. It has increased from 18.76 (Mar 23) to 19.13, marking an increase of 0.37.
  • For NP After MI And SOA Margin (%), as of Mar 24, the value is 19.05. This value is within the healthy range. It has increased from 18.69 (Mar 23) to 19.05, marking an increase of 0.36.
  • For Return on Networth / Equity (%), as of Mar 24, the value is 50.73. This value is within the healthy range. It has increased from 46.61 (Mar 23) to 50.73, marking an increase of 4.12.
  • For Return on Capital Employeed (%), as of Mar 24, the value is 63.51. This value is within the healthy range. It has increased from 57.63 (Mar 23) to 63.51, marking an increase of 5.88.
  • For Return On Assets (%), as of Mar 24, the value is 31.34. This value is within the healthy range. It has increased from 29.33 (Mar 23) to 31.34, marking an increase of 2.01.
  • For Asset Turnover Ratio (%), as of Mar 24, the value is 1.66. It has increased from 1.58 (Mar 23) to 1.66, marking an increase of 0.08.
  • For Current Ratio (X), as of Mar 24, the value is 2.45. This value is within the healthy range. It has decreased from 2.53 (Mar 23) to 2.45, marking a decrease of 0.08.
  • For Quick Ratio (X), as of Mar 24, the value is 2.45. This value exceeds the healthy maximum of 2. It has decreased from 2.53 (Mar 23) to 2.45, marking a decrease of 0.08.
  • For Dividend Payout Ratio (NP) (%), as of Mar 24, the value is 54.75. This value exceeds the healthy maximum of 50. It has decreased from 98.10 (Mar 23) to 54.75, marking a decrease of 43.35.
  • For Dividend Payout Ratio (CP) (%), as of Mar 24, the value is 49.39. This value is within the healthy range. It has decreased from 87.65 (Mar 23) to 49.39, marking a decrease of 38.26.
  • For Earning Retention Ratio (%), as of Mar 24, the value is 45.25. This value is within the healthy range. It has increased from 1.90 (Mar 23) to 45.25, marking an increase of 43.35.
  • For Cash Earning Retention Ratio (%), as of Mar 24, the value is 50.61. This value is within the healthy range. It has increased from 12.35 (Mar 23) to 50.61, marking an increase of 38.26.
  • For Interest Coverage Ratio (X), as of Mar 24, the value is 88.33. This value is within the healthy range. It has increased from 80.50 (Mar 23) to 88.33, marking an increase of 7.83.
  • For Interest Coverage Ratio (Post Tax) (X), as of Mar 24, the value is 61.48. This value is within the healthy range. It has increased from 55.30 (Mar 23) to 61.48, marking an increase of 6.18.
  • For Enterprise Value (Cr.), as of Mar 24, the value is 1,393,389.10. It has increased from 1,163,072.80 (Mar 23) to 1,393,389.10, marking an increase of 230,316.30.
  • For EV / Net Operating Revenue (X), as of Mar 24, the value is 5.78. This value exceeds the healthy maximum of 3. It has increased from 5.16 (Mar 23) to 5.78, marking an increase of 0.62.
  • For EV / EBITDA (X), as of Mar 24, the value is 20.28. This value exceeds the healthy maximum of 15. It has increased from 18.55 (Mar 23) to 20.28, marking an increase of 1.73.
  • For MarketCap / Net Operating Revenue (X), as of Mar 24, the value is 5.84. This value exceeds the healthy maximum of 3. It has increased from 5.20 (Mar 23) to 5.84, marking an increase of 0.64.
  • For Retention Ratios (%), as of Mar 24, the value is 45.24. This value is within the healthy range. It has increased from 1.89 (Mar 23) to 45.24, marking an increase of 43.35.
  • For Price / BV (X), as of Mar 24, the value is 15.54. This value exceeds the healthy maximum of 3. It has increased from 12.98 (Mar 23) to 15.54, marking an increase of 2.56.
  • For Price / Net Operating Revenue (X), as of Mar 24, the value is 5.84. This value exceeds the healthy maximum of 3. It has increased from 5.20 (Mar 23) to 5.84, marking an increase of 0.64.
  • For EarningsYield, as of Mar 24, the value is 0.03. This value is below the healthy minimum of 5. There is no change compared to the previous period (Mar 23) which recorded 0.03.

Overall, while many metrics show healthy performance, any figures highlighted in red or significant downward trends warrant further investigation.

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Tata Consultancy Services Ltd as of April 1, 2025 is: 3,103.75

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of April 1, 2025, Tata Consultancy Services Ltd is Overvalued by 12.60% compared to the current share price 3,551.00

Intrinsic Value of Tata Consultancy Services Ltd as of April 1, 2025 is: 3,382.58

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of April 1, 2025, Tata Consultancy Services Ltd is Overvalued by 4.74% compared to the current share price 3,551.00

Last 5 Year EPS CAGR: 8.98%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 51.00%, which is a positive sign.
  2. The company has higher reserves (77,584.08 cr) compared to borrowings (3,874.77 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (150.69 cr) and profit (40.54 cr) over the years.
  1. The stock has a high average Working Capital Days of 53.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 76.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Tata Consultancy Services Ltd:
    1. Net Profit Margin: 19.13%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 63.51% (Industry Average ROCE: 21.15%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 50.73% (Industry Average ROE: 17.71%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 61.48
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 2.45
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 26.4 (Industry average Stock P/E: 42.06)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Tata Consultancy Services Ltd. is a Public Limited Listed company incorporated on 19/01/1995 and has its registered office in the State of Maharashtra, India. Company's Corporate Identification Number(CIN) is L22210MH1995PLC084781 and registration number is 084781. Currently Company is involved in the business activities of Computer programming activities. Company's Total Operating Revenue is Rs. 202359.00 Cr. and Equity Capital is Rs. 362.00 Cr. for the Year ended 31/03/2024.
INDUSTRYADDRESSCONTACT
IT Consulting & Software9th Floor, Mumbai Maharashtra 400021investor.relations@tcs.com
https://www.tcs.com
Management
NamePosition Held
Mr. Keki M MistryInd. Non-Executive Director
Mr. N ChandrasekaranChairman
Mr. K KrithivasanManaging Director & CEO
Mr. N G SubramaniamExe.Director & COO
Ms. Aarthi SubramanianNon Exe.Non Ind.Director
Mr. O P BhattInd. Non-Executive Director
Dr. Pradeep Kumar KhoslaInd. Non-Executive Director
Ms. Hanne SorensenInd. Non-Executive Director
Mr. Al-Noor RamjiInd. Non-Executive Director

FAQ

What is the intrinsic value of Tata Consultancy Services Ltd?

Tata Consultancy Services Ltd's intrinsic value (as of 01 April 2025) is ₹3103.75 — 12.60% lower the current market price of ₹3,551.00, indicating overvalued. Calculated using the PE ratio method, this valuation considers the company's 12,85,316 Cr. market cap, FY2025-2026 high/low of ₹4,592/3,457, reserves of 101,133 Cr, and liabilities of 161,124 Cr.

What is the Market Cap of Tata Consultancy Services Ltd?

The Market Cap of Tata Consultancy Services Ltd is 12,85,316 Cr..

What is the current Stock Price of Tata Consultancy Services Ltd as on 01 April 2025?

The current stock price of Tata Consultancy Services Ltd as on 01 April 2025 is 3,551.

What is the High / Low of Tata Consultancy Services Ltd stocks in FY 2025-2026?

In FY 2025-2026, the High / Low of Tata Consultancy Services Ltd stocks is ₹4,592/3,457.

What is the Stock P/E of Tata Consultancy Services Ltd?

The Stock P/E of Tata Consultancy Services Ltd is 26.4.

What is the Book Value of Tata Consultancy Services Ltd?

The Book Value of Tata Consultancy Services Ltd is 281.

What is the Dividend Yield of Tata Consultancy Services Ltd?

The Dividend Yield of Tata Consultancy Services Ltd is 1.55 %.

What is the ROCE of Tata Consultancy Services Ltd?

The ROCE of Tata Consultancy Services Ltd is 64.3 %.

What is the ROE of Tata Consultancy Services Ltd?

The ROE of Tata Consultancy Services Ltd is 51.5 %.

What is the Face Value of Tata Consultancy Services Ltd?

The Face Value of Tata Consultancy Services Ltd is 1.00.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Tata Consultancy Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE