TATACONSULTANCYSERVI
Tata Consultancy Services Ltd. · Technology · Software & Services - Diversified · Large Cap
STRONG BUY with net score +19 (+19 buy, −0 sell). Strongest positive: VR Stock Rating Strong (weight 4). 10 BUY rules fire total. P/E is 48% below its 5Y median — historically cheap. P/B is 45% below its 5Y median — verify median isn't skewed by past spikes.
Engine Verdict
Price Context
Price History (Yahoo) with Your Decisions
Returns Profile
VR Score Radar (out of 10)
Verdict Breakdown · 10 triggered / 21 active
VR Proprietary Scores
Fundamentals
Engine Zone Timeline · 2 runs
Your Decisions on TATACONSULTANCYSERVI · 0
Position Lifecycle · TATACONSULTANCYSERVI
Recent News · TATACONSULTANCYSERVI
Sector Peers
| Stock | Zone | Price | Mcap | P/E | P/B | ROE % | ROCE % | D/E | EPS g% | Div Y% | 1Y Ret % | Quality |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| TATACONSULTANCYSERVIYOU Tata Consultancy Services Ltd. | Strong Buy | 2,094.70 | ₹7.68T | 15.61 | 7.16 | — | — | — | — | 5.19 | -38.22 | 10/10 |
| INFOSYS Infosys Ltd. | Strong Buy | 1,041.20 | ₹4.25T | 14.45 | 4.66 | — | — | — | — | 4.57 | -34.17 | 10/10 |
| HCLTECHNOLOGIES HCL Technologies Ltd. | Strong Buy | 1,100.70 | ₹3.02T | 18.12 | 4.01 | — | — | — | — | 5.40 | -34.94 | 10/10 |
| LTTECHNOLOGYSERVICES L&T Technology Services Ltd. | Strong Buy | 3,322.40 | ₹353B | 27.58 | 5.50 | — | — | — | — | 1.75 | -23.30 | 10/10 |
AI Deep Dive (Claude)
Tata Consultancy Services Ltd. – Stock Analysis
Bull Case
TCS is trading at a steep 48% discount to its 5-year median P/E (15.6x vs. 30.1x) and 45% below its median P/B (7.2x vs. 12.9x), signaling genuine undervaluation rather than value-trap territory. The stock generates robust free cash flow with a 5.6% FCF yield and delivers a solid 5.2% dividend yield—both attractive for patient capital. Quality score of 10/10 reflects TCS's market leadership, though the 40% drawdown from 52-week highs and 54% from all-time highs indicates fear has driven pricing well below fundamentals. EV/EBITDA of 9.8x and P/CFO of 14.7x reinforce that the company is cheap across multiple metrics. For a debt-light business generating ₹117/share in free cash (80% of EPS), current valuation offers meaningful margin of safety.
Bear Case
Momentum is deeply negative (score 1/10), with the stock down 38% over one year and negative returns across all trailing periods (1Y/3Y/5Y all red). Growth score of 6/10 is mediocre for a technology stock, and the PEG of 1.5 suggests earnings growth isn't keeping pace with historical norms. Critical quality metrics—ROE, ROCE, and Debt/Equity—are missing (n/a), making it impossible to verify balance sheet health or return on capital. The 40% drop from 52-week highs reflects genuine concerns: likely a mix of weak IT spending (global macro headwinds), margin pressure, or slowing revenue growth. Without visibility on profitability ratios, we're buying on valuation faith alone. The sector faces structural pressures from AI disruption and pricing compression.
What Would Flip the Verdict
Exit trigger: If next quarter's results show ROE falling below 35% or ROCE below 40% (once disclosed), it would signal eroding competitive moats—reassess immediately. Trim position: If P/E reverts halfway to its 5Y median (reaches ~23x), lock in 50% gains and rebalance. Add more: If revenue growth accelerates above 12% YoY with stable margins, confirming demand recovery, the current 6/10 growth score would improve materially—consider averaging down. Red flag: FCF/EPS conversion dropping below 70% for two consecutive quarters would indicate deteriorating cash generation quality despite reported profits.
Generated 6/25/2026, 11:58:19 AM · Cached. Click Regenerate to refresh (counts against today's quota).