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 TCS's revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.

Financial Ratios:

currentRatio 2.321000
forwardPE 21.862291
debtToEquity 9.807000
earningsGrowth -0.017000
revenueGrowth 0.053000
grossMargins 0.383390
operatingMargins 0.241950
trailingEps 134.150000
forwardEps 154.680000

TCS's current ratio of 2.321, indicating that the company can meet its short-term debt obligations with ease. This high liquidity level is a positive sign, as TCS has enough cash and current assets to handle its immediate liabilities comfortably.
TCS's Forward PE being in a good range indicates that the stock is valued appropriately based on its earnings. This suggests the stock is not overpriced and leaves room for growth, providing investors with an opportunity for potential appreciation in value.
TCS's low earnings and revenue growth highlight a potential decline in profitability. This suggests that the company's financial health may be weakening, and profits could shrink as a result.
Positive gross and operating margins for TCS suggest that the company is operating profitably. These margins highlight TCS's efficiency in managing costs while maintaining healthy revenue streams, contributing to its overall financial strength.
With a forward EPS greater than its trailing EPS, TCS is forecasted to be more profitable this year than last. This growth expectation reflects confidence in the company's earnings potential and suggests an improving financial trajectory for the year ahead.

Price projections:

Price projections for TCS
Price projections for TCS

Over time, analysts have gradually revised TCS's price projections downward. This suggests growing concerns about the company's ability to meet previous expectations, pointing to a more conservative outlook.

Recommendation changes over time:

Recommendations trend for TCS
Recommendations trend for TCS


Analysts have shown a buy bias for TCS, marking it as a favorable investment option. This could inspire investors to see TCS as a strong place to park their money, given the positive outlook and growth potential associated with the stock in recent evaluations.