Stratzy's Recommendation: Buy Tata Consultancy Serv Lt with Target Price Rs 4456

Stratzy has buy call on Tata Consultancy Serv Lt at current market price of Rs 4146. The target price of Tata Consultancy Serv Lt is Rs 4456.

About Tata Consultancy Serv Lt:

Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) services and consulting company. Part of the Tata Group, it is headquartered in Mumbai, Maharashtra. TCS offers a wide range of IT services, including consulting, software development, enterprise resource planning (ERP), infrastructure management, cloud computing, and business process outsourcing (BPO). The company operates in 46 countries and has over 500,000 employees. TCS is one of the largest IT service providers in the world by revenue and market capitalization.

52 Week Price Trend:

Tata Consultancy Services (TCS) is currently trading at Rs 4146, close to its 52-week high of Rs 4184.75. Despite the recent market volatility, the stock has performed remarkably, significantly above its 52-week low of Rs 3070.25. This strong performance reflects investor confidence in TCS's long-term growth prospects and its ability to navigate market challenges.

Stratzy's Analysis:

TCS has received an AAA rating from Stratzy's MOST framework, indicating a low fundamental risk. This rating is based on an assessment of TCS's management, outlook, safety, and trend. The AAA rating suggests that TCS is a well-managed company with a strong financial position and positive growth prospects.

Company's Fundamentals:

Tata Consultancy Services Limited (TCS) currently trades at a Stock Price-to-Earnings (PE) ratio of 31.76, indicating that investors are willing to pay Rs. 31.76 for every rupee of earnings. The Price-to-Book (PB) Ratio of 14.38 suggests that the market value of TCS is 14.38 times its book value, implying that investors are valuing the company based on its future earnings potential and intangible assets. With a Dividend Yield of 1.2%, TCS offers investors a modest passive income stream, but it is not primarily considered a high-dividend stock.

Fundamental and Technical information provided in this blog were last updated on 12 Mar, 2024

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