TATA CONSULTANCY SERVICES
TATA CONSULTANCY SERVICES
Tata Consultancy Services (TCS) is a global leader, multinational Information Technology service, consulting and business solutions company headquartered in Mumbai, Maharashtra.
TCS has been recognized by Brand Finance as one of the Big 4 Global IT Services Brands.
|
BSE Code |
532540 |
|
NSE Code |
TCS |
|
Reuters Code |
TCS.NS |
|
INCEPTION |
2000 |
|
IPO |
2001 |
|
Industry |
Information Technology Services |
|
CMP (as on 23/09/2015) |
2588.5 |
|
Stock Beta |
0.5281 |
|
52 Week H/L |
2455 / 2834 |
|
Market Cap (Cr) |
506852.81 |
|
Equity Capital (Rs cr) |
195.87 |
|
Face Value (Rs) |
1.00 |
|
Average Volume |
|
|
|
|
|
Shareholding Pattern (%) |
|
|
Promoters |
73.86 |
|
Non Institutions |
26.14 |
|
Grand Total |
100.00 |
Tata Consultancy Services - Potential Catalysts
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Well diversified client across geography.
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Margins and ratios expected to improve
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Efficiency and Higher service level due to streamlined process with Domestic business to focus more on profitability
Tata Consultancy Services - Recommendation
With Superior project management skills, focus on measuring and monitoring quality and its planned expansion TCS will be able to grow over the next few years. We recommend BUY on the stock at CMP of Rs. 2588 to target of Rs. 2773 (115x FY16 EPS).
Tata Consultancy Services - Financial Summary
|
Yearly Financial Statement |
2014 |
2015 |
2016 E |
2017 E |
|
Revenue |
83446.1 |
98368.07 |
109443.44 |
123777.84 |
|
EBIDTA |
26789.53 |
28201.37 |
30760.20 |
34869.77 |
|
EBIT |
25440.38 |
26402.68 |
28798.31 |
32645.77 |
|
Adjusted PAT |
19163.87 |
21874.16 |
22475.67 |
25415.44 |
|
EPS |
97.67 |
101.35 |
114.75 |
129.75 |
|
EBIDTA Margin |
32.75% |
29.80% |
28.67% |
28.28% |
|
EBIT Margin |
31.10% |
27.90% |
26.84% |
27.86% |
|
PAT Margin |
22.97% |
22.24% |
20.54% |
21.32% |
BUSINESS DESCRIPTION
Tata Consultancy Services Limited (TCS) is an information technology (IT) services, consulting and business solutions organization. TCS offers a consulting-led, integrated portfolio of IT, Business Process Services (BPS), infrastructure, engineering and assurance services. It services portfolio comprises assurance services, business intelligence (BI) and performance management, business process services, consulting, digital enterprise, engineering and industrial services, enterprise security and risk management, enterprise solutions, iON business, IT infrastructure services, IT services, platform solutions and supply chain management, among others. TCS offers software, including Digital Software and Solutions, TCS BaNCS, TCS MasterCraft and TCS Technology Products. It serves various industries, including Banking and Financial Services, Energy, Government, Healthcare, High Tech, Insurance, Life Sciences, Resources, Retail and Consumer Products, Telecom, Travel, and Utilities.
Tata Consultancy Services Ltd. key Products/Revenue Segments include Information Technology & Consultancy Services which contributed Rs 72160.74 Cr to Sales Value (98.07% of Total Sales), Sale of Equipment & Software Licenses which contributed Rs 1417.32 Cr to Sales Value (1.92% of Total Sales), for the year ending 31-Mar-2015.
Revenue Distribution
|
In % |
Mar-15 |
Dec-15 |
Mar-15 |
|
Financial Services |
26.9 |
26.6 |
26.1 |
|
Manufacturing |
33.3 |
32.9 |
33.4 |
|
Life science & Healthcare |
10.4 |
11.1 |
11.2 |
|
Public Services |
10.1 |
9.5 |
10.4 |
|
Retail & CPG |
8.5 |
9.7 |
8.4 |
|
Telecommunications, Media & Entertainment |
8.4 |
8.4 |
9 |
|
Others |
2.3 |
1.8 |
1.5 |
MANAGEMENT & GOVERNANCE
|
Name |
Designation |
|
Cyrus Mistry |
Chairman |
|
N Chandrasekaran |
Managing Director & CEO |
|
Phiroz A Vandrevala |
Director |
|
Aman Mehta |
Director |
|
Venkatraman Thyagarajan |
Director |
|
Ron Sommer |
Director |
|
Ishaat Hussain |
Director |
|
Vijay Kelkar |
Director |
|
Suprakash Mukhopadhyay |
Company Secretary |
|
Clayton M Christensen |
Director |
|
O P Bhatt |
Director |
|
Aarthi Subramanian |
Director |
Shareholding pattern as on 30thJune, 2015
|
Category |
No. of Shares |
Percentage |
|
|