Tata Consultancy (India) Buy Hold or Sell Recommendation
| TCS Stock | 4,333 20.15 0.46% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Tata Consultancy Services is 'Cautious Hold'. Macroaxis provides Tata Consultancy buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding TCS positions.
Check out Tata Consultancy Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Tata and provide practical buy, sell, or hold advice based on investors' constraints. Tata Consultancy Services. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Tata |
Execute Tata Consultancy Buy or Sell Advice
The Tata recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Tata Consultancy Services. Macroaxis does not own or have any residual interests in Tata Consultancy Services or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Tata Consultancy's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Tata Consultancy Trading Alerts and Improvement Suggestions
| Tata Consultancy generated a negative expected return over the last 90 days | |
| Tata Consultancy is unlikely to experience financial distress in the next 2 years | |
| About 72.0% of the company outstanding shares are owned by corporate insiders |
Tata Consultancy Returns Distribution Density
The distribution of Tata Consultancy's historical returns is an attempt to chart the uncertainty of Tata Consultancy's future price movements. The chart of the probability distribution of Tata Consultancy daily returns describes the distribution of returns around its average expected value. We use Tata Consultancy Services price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Tata Consultancy returns is essential to provide solid investment advice for Tata Consultancy.
| Mean Return | -0.05 | Value At Risk | -1.85 | Potential Upside | 1.31 | Standard Deviation | 1.21 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Tata Consultancy historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Tata Consultancy Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change To Inventory | 160M | 50M | (30M) | (120M) | (80M) | 52.5M | |
| Change In Cash | 14.2B | (17.9B) | 56.3B | (53.7B) | 18.9B | 19.9B | |
| Free Cash Flow | 291.2B | 356.3B | 369.5B | 388.7B | 416.6B | 437.5B | |
| Depreciation | 35.3B | 40.7B | 46.0B | 50.2B | 49.9B | 52.3B | |
| Other Non Cash Items | 10.6B | 13.1B | (3.4B) | (11.4B) | 3.3B | 3.4B | |
| Dividends Paid | 376.3B | 108.5B | 133.2B | 413.5B | 251.4B | 263.9B | |
| Capital Expenditures | 32.5B | 31.8B | 30.0B | 31B | 26.7B | 22.9B | |
| Net Income | 324.5B | 325.6B | 384.5B | 423.0B | 459.1B | 238.3B | |
| End Period Cash Flow | 86.5B | 68.6B | 124.9B | 71.2B | 90.2B | 46.5B | |
| Investments | 83.9B | (46.7B) | (55.2B) | 390M | 60.3B | 63.3B | |
| Net Borrowings | (1.9B) | (10.6B) | (13.4B) | (14.2B) | (12.8B) | (12.1B) | |
| Change To Netincome | (27.7B) | 11.7B | 14.4B | (2.1B) | (2.4B) | (2.6B) |
Tata Consultancy Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Tata Consultancy or IT Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Tata Consultancy's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Tata stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.06 | |
β | Beta against Dow Jones | 0.05 | |
σ | Overall volatility | 1.23 | |
Ir | Information ratio | -0.14 |
Tata Consultancy Volatility Alert
Tata Consultancy Services exhibits very low volatility with skewness of 0.58 and kurtosis of 4.77. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Tata Consultancy's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Tata Consultancy's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Tata Consultancy Fundamentals Vs Peers
Comparing Tata Consultancy's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Tata Consultancy's direct or indirect competition across all of the common fundamentals between Tata Consultancy and the related equities. This way, we can detect undervalued stocks with similar characteristics as Tata Consultancy or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Tata Consultancy's fundamental indicators could also be used in its relative valuation, which is a method of valuing Tata Consultancy by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Tata Consultancy to competition |
| Fundamentals | Tata Consultancy | Peer Average |
| Return On Equity | 0.47 | -0.31 |
| Return On Asset | 0.25 | -0.14 |
| Profit Margin | 0.19 % | (1.27) % |
| Operating Margin | 0.24 % | (5.51) % |
| Current Valuation | 15.28 T | 16.62 B |
| Shares Outstanding | 3.62 B | 571.82 M |
| Shares Owned By Insiders | 71.78 % | 10.09 % |
| Shares Owned By Institutions | 16.34 % | 39.21 % |
| Price To Book | 15.52 X | 9.51 X |
| Price To Sales | 6.31 X | 11.42 X |
| Revenue | 2.41 T | 9.43 B |
| Gross Profit | 830.37 B | 27.38 B |
| EBITDA | 677.3 B | 3.9 B |
| Net Income | 459.08 B | 570.98 M |
| Cash And Equivalents | 110.32 B | 2.7 B |
| Total Debt | 80.21 B | 5.32 B |
| Book Value Per Share | 280.52 X | 1.93 K |
| Cash Flow From Operations | 443.38 B | 971.22 M |
| Earnings Per Share | 130.84 X | 3.12 X |
| Price To Earnings To Growth | 2.34 X | 4.89 X |
| Target Price | 4498.6 | |
| Number Of Employees | 612.72 K | 18.84 K |
| Beta | 0.52 | -0.15 |
| Market Capitalization | 15.68 T | 19.03 B |
| Total Asset | 1.46 T | 29.47 B |
| Retained Earnings | 864.27 B | 9.33 B |
| Working Capital | 668.8 B | 1.48 B |
| Annual Yield | 0.01 % | |
| Net Asset | 1.46 T | |
| Last Dividend Paid | 57.0 |
Tata Consultancy Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Tata . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 0.0122 | |||
| Daily Balance Of Power | (0.38) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 4350.73 | |||
| Day Typical Price | 4344.67 | |||
| Market Facilitation Index | 53.35 | |||
| Price Action Indicator | (28.25) | |||
| Period Momentum Indicator | (20.15) |
About Tata Consultancy Buy or Sell Advice
When is the right time to buy or sell Tata Consultancy Services? Buying financial instruments such as Tata Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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In addition to having Tata Consultancy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Tata Stock
Tata Consultancy financial ratios help investors to determine whether Tata Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Tata with respect to the benefits of owning Tata Consultancy security.