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Tata Consultancy Services Ltd

NSE: TCS BSE: 532540

2928.60

(-2.10)%

Fri, 06 Feb 2026, 04:19 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (2.6x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Tata Consultancy Services's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Tata Consultancy Services's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Tata Consultancy Services is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
  • Performance (ROE) is expected to be above the current IN IT industry average.
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Cons

  • Cash flow for Tata Consultancy Services is expected to increase but not above the 50% threshold in 2 years time.
  • Tata Consultancy Services's earnings are expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
  • Tata Consultancy Services's earnings growth is positive but not above the India market average.
  • Tata Consultancy Services's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Tata Consultancy Services's earnings are expected to decrease over the next year.
  • Tata Consultancy Services's earnings are expected to increase but not above the low risk growth rate in 3 years time
  • Tata Consultancy Services's net income is expected to increase but not above the 50% threshold in 2 years time.
  • A decline in Tata Consultancy Services's performance (ROE) is expected over the next 3 years.
  • Tata Consultancy Services's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Tata Consultancy Services's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).
  • Tata Consultancy Services's revenue growth is positive but not above the India market average.

health

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Pros

  • Tata Consultancy Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tata Consultancy Services is profitable, therefore cash runway is not a concern.
  • Tata Consultancy Services is profitable, therefore cash runway is not a concern.
  • Tata Consultancy Services has no debt, it does not need to be covered by operating cash flow.
  • Tata Consultancy Services has no debt, it does not need to be covered by short term assets.
  • Tata Consultancy Services's cash and other short term assets cover its long term commitments.
  • Tata Consultancy Services has no debt compared to 5 years ago when it was 0.4%.
  • Tata Consultancy Services has no debt, therefore coverage of interest payments is not a concern.
  • Tata Consultancy Services has no debt.
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • The tenure for the Tata Consultancy Services board of directors is about average.
    • Rajesh's compensation has been consistent with company performance over the past year, both up more than 20%.
    • The tenure for the Tata Consultancy Services management team is about average.
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    Cons

    • Rajesh's remuneration is higher than average for companies of similar size in India.
    • Tata Consultancy Services individual insiders have only sold shares in the past 3 months.

    past

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    Pros

    • Tata Consultancy Services's year on year earnings growth rate has been positive over the past 5 years.
    • Tata Consultancy Services used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
    • Tata Consultancy Services has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
    • Tata Consultancy Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
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    Cons

    • Tata Consultancy Services's 1-year earnings growth is less than its 5-year average (2.7% vs 9.5%)
    • Tata Consultancy Services's earnings growth has not exceeded the IN IT industry average in the past year (2.7% vs 6%).

    value

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    Pros

    • 532540 matched the IT industry (-10.1%) over the past year.
    • 532540 outperformed the Market in India which returned -14.5% over the past year.
    • BSE:532540 is up 8% along with the IT industry (8.5%) over the past month.
    • BSE:532540 is up 8% along with the India market (8%) over the past month.
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    Cons

    • Tata Consultancy Services's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Tata Consultancy Services's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Tata Consultancy Services is overvalued based on assets compared to the IN IT industry average.
    • Tata Consultancy Services is poor value based on expected growth next year.
    • Tata Consultancy Services is overvalued based on earnings compared to the IN IT industry average.
    • Tata Consultancy Services is overvalued based on earnings compared to the India market.

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