TCS - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 4.0
| Stock Code | TCS | Market Cap | 8,79,808 Cr. | Current Price | 2,431 ₹ | High / Low | 3,630 ₹ |
| Stock P/E | 16.8 | Book Value | 234 ₹ | Dividend Yield | 2.47 % | ROCE | 76.7 % |
| ROE | 65.2 % | Face Value | 1.00 ₹ | DMA 50 | 2,580 ₹ | DMA 200 | 2,958 ₹ |
| Chg in FII Hold | -0.71 % | Chg in DII Hold | 0.53 % | PAT Qtr | 14,526 Cr. | PAT Prev Qtr | 12,684 Cr. |
| RSI | 42.2 | MACD | -21.2 | Volume | 29,58,250 | Avg Vol 1Wk | 37,32,082 |
| Low price | 2,346 ₹ | High price | 3,630 ₹ | PEG Ratio | 1.66 | Debt to equity | 0.11 |
| 52w Index | 6.63 % | Qtr Profit Var | 30.7 % | EPS | 136 ₹ | Industry PE | 21.1 |
TCS shows excellent fundamentals but currently weak technical signals, making it a strong long-term candidate and a fair swing trade opportunity with caution. The company has a low P/E ratio (16.8 vs. industry average of 21.1), outstanding ROCE (76.7%) and ROE (65.2%), and strong quarterly PAT growth (14,526 Cr. vs. 12,684 Cr.). Technically, however, the stock is trading below both its 50 DMA (2,580 ₹) and 200 DMA (2,958 ₹), with RSI at 42.2 (oversold zone) and MACD at -21.2 (bearish), suggesting short-term weakness but potential for rebound.
Optimal Entry Price: Entry can be considered around 2,350–2,400 ₹, near strong support levels.
Exit Strategy (if already holding): Exit near 2,550–2,600 ₹ resistance or if the price fails to sustain above 2,431 ₹.
✅ Positive
- Strong fundamentals with ROCE at 76.7% and ROE at 65.2%.
- Quarterly PAT growth of 30.7% shows robust earnings momentum.
- EPS of 136 ₹ reflects strong profitability.
- Dividend yield of 2.47% adds shareholder value.
⚠️ Limitation
- Stock trading below both 50 DMA and 200 DMA indicates technical weakness.
- RSI at 42.2 suggests oversold conditions, but momentum remains weak.
- MACD negative (-21.2), showing bearish trend in the short term.
📉 Company Negative News
- FII holdings decreased by 0.71%, showing reduced foreign investor confidence.
- Short-term technical indicators remain bearish.
📈 Company Positive News
- Quarterly PAT increased significantly (14,526 Cr. vs. 12,684 Cr.).
- DII holdings increased by 0.53%, showing domestic institutional support.
- Dividend yield supports long-term investors.
🏭 Industry
- Industry average P/E is 21.1, higher than TCS’s 16.8, making TCS relatively undervalued.
- TCS stands out with superior efficiency metrics compared to peers.
🔎 Conclusion
TCS is fundamentally strong and undervalued compared to industry peers, making it a solid candidate for swing trading once technicals stabilize. Entry around 2,350–2,400 ₹ is attractive, with an exit target near 2,550–2,600 ₹. Short-term weakness persists, but strong fundamentals support a rebound potential.