Tata Consultancy Services Ltd., incorporated in the year 1995, is a Large Cap company (having a market cap of Rs 1190058.81 Crore) operating in IT Software sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 44636.00 Crore, up 4.52 % from last quarter Total Income of Rs 42706.00 Crore and up 9.71 % from last year same quarter Total Income of Rs 40684.00 Crore. Company reported net profit after tax of Rs 9282.00 Crore in latest quarter.
Investment Rationale
TCS is expected to maintain strong growth momentum led by deals in core transformation area and accelerated adoption of digital technologies. EBIT margin would remain in target band of 26‐18% led by favourable business mix and operating leverage. Its deep contextual knowledge of clients would help it to sustain deal win momentum. Free cash flow generation will remain strong with limited reinvestment requirements. It trades at PE of 27.8x on FY23 earnings. Initiate coverage on the stock with BUY.
Promoter/FII Holdings
Promoters held 72.1 per cent stake in the company as of Dec 30, 2020, while FIIs held 15.9 per cent, DIIs 7.8 per cent and public and others 4.3 per cent.
