Financials Tata Consultancy Services Ltd.

Equities

TCS

INE467B01029

IT Services & Consulting

Market Closed - NSE India S.E. 06:40:48 2024-02-22 am EST 5-day change 1st Jan Change
4,087 INR +2.40% Intraday chart for Tata Consultancy Services Ltd. -0.32% +7.74%

Valuation

Fiscal Period: März 2019 2020 2021 2022 2023 2024 2025 2026
Capitalization 1 7,510,961 6,852,230 11,755,030 13,684,669 11,730,553 14,787,485 - -
Enterprise Value (EV) 1 7,148,195 6,548,500 11,421,230 13,249,619 11,300,103 14,303,433 14,206,357 14,127,687
P/E ratio 24.1 x 21.2 x 36.6 x 36.1 x 27.8 x 32.3 x 29 x 26.2 x
Yield 1.5% 4% 1.2% 1.15% 3.59% 1.87% 2.73% 2.89%
Capitalization / Revenue 5.13 x 4.37 x 7.16 x 7.14 x 5.2 x 6.12 x 5.61 x 5.12 x
EV / Revenue 4.88 x 4.17 x 6.96 x 6.91 x 5.01 x 5.92 x 5.39 x 4.89 x
EV / EBITDA 18.1 x 15.6 x 24.5 x 25 x 19.1 x 22.4 x 20 x 18 x
EV / FCF 26.9 x 22 x 31.7 x 35.4 x 28.7 x 31.9 x 29.2 x 26.6 x
FCF Yield 3.71% 4.56% 3.16% 2.83% 3.49% 3.14% 3.42% 3.76%
Price to Book 8.48 x 8.14 x 13.8 x 15.4 x 13 x 15.9 x 14.6 x 13.3 x
Nbr of stocks (in thousands) 3,752,385 3,752,385 3,699,051 3,659,051 3,659,051 3,618,088 - -
Reference price 2 2,002 1,826 3,178 3,740 3,206 4,087 4,087 4,087
Announcement Date 4/12/19 4/16/20 4/12/21 4/11/22 4/12/23 - - -
1INR in Million2INR
Estimates

Income Statement Evolution (Annual data)

Fiscal Period: März 2019 2020 2021 2022 2023 2024 2025 2026
Net sales 1 1,464,630 1,569,490 1,641,770 1,917,540 2,254,580 2,417,050 2,636,765 2,887,018
EBITDA 1 395,060 421,090 465,460 530,570 592,590 638,507 710,148 785,598
EBIT 1 374,500 385,800 424,810 484,530 542,370 587,357 655,996 730,278
Operating Margin 25.57% 24.58% 25.88% 25.27% 24.06% 24.3% 24.88% 25.3%
Earnings before Tax (EBT) 1 415,630 422,480 437,600 516,870 569,070 620,600 689,011 762,803
Net income 1 314,720 323,400 324,300 383,270 421,470 460,245 511,927 567,482
Net margin 21.49% 20.61% 19.75% 19.99% 18.69% 19.04% 19.41% 19.66%
EPS 2 83.05 86.19 86.71 103.6 115.2 126.4 140.8 156.1
Free Cash Flow 1 265,400 298,310 360,830 374,660 394,330 448,891 486,239 531,546
FCF margin 18.12% 19.01% 21.98% 19.54% 17.49% 18.57% 18.44% 18.41%
FCF Conversion (EBITDA) 67.18% 70.84% 77.52% 70.61% 66.54% 70.3% 68.47% 67.66%
FCF Conversion (Net income) 84.33% 92.24% 111.26% 97.75% 93.56% 97.53% 94.98% 93.67%
Dividend per Share 2 30.00 73.00 38.00 43.00 115.0 76.60 111.6 118.2
Announcement Date 4/12/19 4/16/20 4/12/21 4/11/22 4/12/23 - - -
1INR in Million2INR
Estimates

Income Statement Evolution (Quarterly data)

Fiscal Period: März 2022 Q2 2022 Q3 2022 Q4 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4
Net sales 1 468,670 488,850 505,910 527,580 553,090 582,290 591,620 593,810 596,920 605,830 625,493 637,270 657,880 670,914 682,817
EBITDA 1 131,160 134,330 138,450 134,160 145,160 155,530 157,740 149,980 157,460 163,880 167,530 167,884 177,187 181,448 184,408
EBIT 1 120,000 122,370 126,280 121,860 132,790 142,840 144,880 137,550 144,830 151,550 156,578 156,528 164,637 171,281 174,380
Operating Margin 25.6% 25.03% 24.96% 23.1% 24.01% 24.53% 24.49% 23.16% 24.26% 25.02% 25.03% 24.56% 25.03% 25.53% 25.54%
Earnings before Tax (EBT) 1 129,690 131,910 133,640 127,760 140,960 146,440 153,910 149,890 153,300 148,290 164,781 162,140 170,869 178,502 183,425
Net income 1 96,240 97,690 99,260 94,780 104,310 108,460 113,920 110,740 113,420 110,580 122,878 120,109 126,351 132,099 135,928
Net margin 20.53% 19.98% 19.62% 17.97% 18.86% 18.63% 19.26% 18.65% 19% 18.25% 19.64% 18.85% 19.21% 19.69% 19.91%
EPS 2 26.02 26.41 26.85 25.90 28.51 29.64 31.14 30.26 31.00 30.29 34.00 33.07 34.81 36.05 37.11
Dividend per Share 7.000 7.000 22.00 8.000 8.000 75.00 24.00 - - - - - - - -
Announcement Date 10/8/21 1/12/22 4/11/22 7/8/22 10/10/22 1/9/23 4/12/23 7/12/23 10/11/23 1/11/24 - - - - -
1INR in Million2INR
Estimates

Balance Sheet Analysis

Fiscal Period: März 2019 2020 2021 2022 2023 2024 2025 2026
Net Debt 1 - - - - - - - -
Net Cash position 1 362,766 303,730 333,800 435,050 430,450 484,052 581,128 659,798
Leverage (Debt/EBITDA) - - - - - - - -
Free Cash Flow 1 265,400 298,310 360,830 374,660 394,330 448,891 486,239 531,546
ROE (net income / shareholders' equity) 36.1% 37.3% 38% 43.7% 46.9% 49.5% 52.2% 53.2%
ROA (Net income/ Total Assets) 28.5% 27.4% 25.8% 28.2% 29.6% 32.2% 33.4% 32.6%
Assets 1 1,106,194 1,179,212 1,258,289 1,361,363 1,425,826 1,429,022 1,531,202 1,742,414
Book Value Per Share 2 236.0 224.0 231.0 244.0 247.0 256.0 279.0 307.0
Cash Flow per Share 2 75.40 86.30 104.0 109.0 115.0 132.0 148.0 164.0
Capex 1 20,530 25,380 27,190 24,830 25,320 36,875 44,478 47,672
Capex / Sales 1.4% 1.62% 1.66% 1.29% 1.12% 1.53% 1.69% 1.65%
Announcement Date 4/12/19 4/16/20 4/12/21 4/11/22 4/12/23 - - -
1INR in Million2INR
Estimates

EPS & Dividend

Year-on-year evolution of the PER

Year-on-year evolution of the Yield

Change in Enterprise Value/EBITDA

Trading Rating
Investor Rating
ESG Refinitiv
B+
More Ratings
Sell
Consensus
Buy
Mean consensus
OUTPERFORM
Number of Analysts
40
Last Close Price
4,087 INR
Average target price
3,981 INR
Spread / Average Target
-2.59%
Consensus
+229% on MICROSOFT CORPORATION since our purchase on January 11, 2019
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