Tata Consultancy Services Company Analysis

  • Ticker – BSE : 532540, NSE : TCS, ISIN : INE467B01029

Sector Overview

Development of computer was big big transformation. From that big and Large size to smartphone, it is changing Sector by sector and also changing our life also. This change increase the  need of well educated and skilled English speaking workforce. It is not big issue in India and that helps to build big industry which is known all over the world. Some companies perform extremely good and increase in size. INFOSYS, TCS are one of it. All because of it, Indian IT industry is largest in the world, accounting for 55% of the US$ 146 Billion dollar industry. According to NASSCOM, IT BPO sector in India is generation aggregated revenue of US $ 100 Billion out of which US $ 69.1 Billion is through Export and remaining in domestic market in 2012. It is expected that the size of IT industry will be US$ 300 Billion. All because of it the use of Internet economy is expected to touch ₹10 trillion by 2018.

In India the Tata group as always is ahead of the development. TCS is largest company in India one of the largest around the world. in Fact the Tata group plays key Role in development of IT Sector. the First SEZ for exorting IT services was built by Tata group in Mumbai. It also plays the key role to develop some cities in India, Bengaluru is one example of it. Today, India is fastest growing E-Commerce market in world is all because of it.

Company Overview :

TCS Indian multinational company and also India’s largest Listed company as per market capitalization, headquarter in Mumbai. The company gives wide range of IT services, IT infrastructure, IT consultancy for Banking and financial services and insurance companies, Manufacturing, Retail and consumers packaging, Telecom, media entertainment and Government services like passport. The company offers IT services mainly to Insurance companies, business process services, Cloud Computing etc.The company also in cooperation with Govt of Maharashtra setup the subsidiary for online services of named MAHA online.

The company is Pioneer in many areas like offshore services in India, IT R&D,

Company having 142 office in 42 countries 105 delivery center in 20 County center.

The company is listed on Bombay Stock Exchange and National Stock Exchange.

SHAREHOLDING Pattern

Financial Performance and Ratio : 

 2010-112011-122012-132013-142014-152015-16
Revenue ₹cr37324.5148893.8362989.4881809.3694648.41108646.21
Net Profit ₹cr9068.0410413.4913917.3119163.8719852.1824291.82
NPM %25.8528.24%26.40%28.56%26.17%26.64%
EPS38.6155.9565.294.1598.31116.13
ROE38.86%44.3339.3841.9342.4038.87
ROCE38.05%43.1738.3540.7441.3238.16
Dividend Payout3644.57336733.9280.3537.45
Dividend per Share142522327943.50
ROA29.0632.0329.7232.0730.5329.46
Asset Turnover112.41113.42112.58112.27116.66110.55
Debt to Equity000.0100.010
Book Value99.53126.49165.86224.90231.87298.76

Future Prospects

Brexit is big difficult time for many IT Companies. Including TCS also. Though the fundamental is very strong. Govt and BFSI is very important factor for the company and there is No slowdown looking in the Sector. The Profit growth And sales growth for the company is looking healthy even at such high size.

There are many plus things but Brexit and Jio in India is big Risk as the company keeping some telecommunications in the service portfolio.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter