TCS - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.6

📊 Fundamental Analysis

TCS remains one of the most fundamentally sound companies in India

ROE (52.4%) & ROCE (64.6%): Exceptional capital efficiency, among the best in the industry.

Debt-to-Equity (0.10): Very low leverage, ideal for long-term stability.

Dividend Yield (1.96%): Reliable and consistent payouts.

P/E (22.4) vs Industry P/E (29.1): Slightly undervalued relative to peers.

PEG Ratio (2.74): Indicates moderate growth at a fair price.

Despite recent layoffs and a 25% decline in 2025, the company’s profitability, cash flows, and global leadership remain intact

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📈 Technical & Price Trend Insights

Current Price: ₹3,056

DMA 50 / DMA 200: ₹3,339 / ₹3,647 — price is well below both, indicating bearish momentum.

RSI (20.1): Oversold zone — potential for rebound.

MACD (-86.2): Strong bearish signal.

Volume Spike: Indicates panic selling, but also potential accumulation zone.

💰 Ideal Entry Price Zone

Based on technical support and valuation

Entry Zone: ₹2,950–₹3,100 This range aligns with 52-week low and oversold indicators. Long-term investors can consider staggered accumulation in this zone

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🧭 If You Already Hold the Stock

Exit Strategy / Holding Period

Hold for 5–10 years — TCS is a long-term compounder with global scale and innovation leadership.

Partial Exit near ₹3,800–₹4,000 if valuations stretch or growth slows.

Exit Trigger: If ROE drops below 35% or margin compression persists for 3+ quarters.

Analyst Sentiment

Motilal Oswal: Buy, target ₹3,850

Nuvama: Buy, target ₹3,950

Elara Capital: Downgraded to Accumulate due to growth slowdown

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📈 Long-Term Forecast

Year Target Price Range

2026 ₹3,800–₹4,000

2027 ₹4,300–₹4,370

2028 ₹4,700–₹4,750

2030 ₹5,300–₹5,500

Source: Street Investment, Stock Price Archive, Money Mint Idea

📌 Summary

Metric Value Verdict

ROE / ROCE 52.4% / 64.6% Outstanding

PEG Ratio 2.74 Fair growth pricing

Debt-to-Equity 0.10 Very low risk

Dividend Yield 1.96% Reliable

P/E vs Industry 22.4 vs 29.1 Slightly undervalued

Entry Price Zone ₹2,950–₹3,100 Accumulation zone

Exit Strategy ₹3,800–₹4,000 Partial exit zone

Would you like a comparison with Infosys or HCL Tech to see how TCS stacks up against its peers?

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economictimes.indiatimes.com

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www.financialexpress.com

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www.deccanherald.com

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The Times of India | MSN

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Times Now | MSN

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