TATA CONSULTANCY SERVICES LTD

Yash Telang BSE Code: 532540 | NSE : TCS

FINANCIAL
MODELING
REPORT
(A Comprehensice DCF and Comparable Comps Valuation)
 TABLE OF
CONTENTS
01 Company Profile

02 Historical Statement

03 Common Size Statement

04 Ratio Analysis

05 Forecasting

06 WACC

07 Intronsic Growth

08 DCF Valuation

09 Comparable Comps Valuation

10 Var & Simulation

11 Dupont Analysis

12 Altman's Z score

Note:
The amount which is mentioned in model is in INR Crore
Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The
author of the report is not liable for any losses due to actions taken basis this report. It is advisable to consult SEBI
registered reasearch analyst before making any investments
TATA CONSULTANCY SERVICES LTD - One Page Profile
Tata Consultancy Services (TCS) is a globally renowned IT services, consulting, and business solutions company,
headquartered in Mumbai, India. As part of the Tata Group, TCS has established itself as a leader in the technology
industry, providing a comprehensive range of services including software development, system integration, and IT
infrastructure management. With a strong emphasis on innovation and digital transformation, TCS leverages
cutting-edge technologies such as artificial intelligence, machine learning, cloud computing, and blockchain to
deliver tailored solutions to its clients across diverse industries. The company is committed to sustainability and
corporate social responsibility, actively contributing to education, healthcare, and community development
initiatives.

INR (Crs)
Key Financial Metrics Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Share Price - 5Y
Total Sales 1,56,949 1,64,177 1,91,754 2,25,458 2,40,893 4500
Sales Growth (y-o-y) 7.16% 4.61% 16.80% 17.58% 6.85% 4000
Gross Profit 69,092 70,901 83,037 96,055 97,060 3500
3000
Gross Profit Margin (%) 44.02% 43.19% 43.30% 42.60% 40.29%
2500
EBITDA Margin (%) 26.83% 28.35% 27.67% 26.28% 26.69%
2000
EBIT Margin (%) 24.58% 25.88% 25.27% 24.06% 24.62% 1500
EBT Margin (%) 23.99% 25.49% 24.86% 23.71% 24.30% 1000
Net Profit Margin (%) 17.75% 18.67% 17.96% 17.23% 17.70% 500
Earnings Per Sahre (In Rs.) 74.23 82.85 94.10 106.18 117.84 0
EPS Growth (y-o-y) 2.22% 11.61% 13.58% 12.85% 10.97% 2019 2020 2021 2022 2023 2024

Key Financial Ratio Mar-20 Mar-21 Mar-22 Mar-23 Mar-24 Volume - 5Y

Price to Earning 21.19x 36.25x 35.71x 27.83x 30.55x 25 m
EV/EBITDA 16.24x 25.22x 25.60x 19.74x 21.73x 20 m
EV/Sales 4.36x 7.15x 7.08x 5.19x 5.80x 15 m
Price to Book Value 8.15x 13.60x 15.35x 12.97x 15.50x 10 m
Return on Equity (%) 25.10% 25.24% 28.96% 31.22% 33.83% 5m
0m
Return on Capital Employed (%) 41.80% 45.08% 49.97% 55.28% 60.21%
2019 2020 2021 2022 2023 2024

Shareholder's name N.Shares (in Crs) Holding (%) Market Value (in Crs) Shareholding Pattern
TATA SONS PRIVATE LIMITED 2595.50 71.74% 10193823.97
LIC of India 175.98 4.86% 691143.14 Public &
4.92%
Government
Sbi Nifty 50 Etf 42.50 1.17% 166899.99
TATA INVESTMENT CORPORATION LIMITED 1.00 0.03% 3944.88 DIIs 10.61%
Investor Education and Protection Fund (IEPF) 0.65 0.02% 2551.31
LLP 0.49 0.01% 1932.86 FIIs 12.70%
THE TATA POWER COMPANY LIMITED 0.00 0.00% 3.01
TATA INDUSTRIES LIMITED 0.01 0.00% 28.36 Promoters 71.77%
TATA STEEL LIMITED 0.05 0.00% 183.80

Managerial Remuneration Designation Remuration X of Median Salary Capital Structure

N Chandrasekaran Chairman - - Share Price 3,928
K Krithivasan CEO & MD 127.5 - Number of Shares o/s 362
N G Subramaniam COO and Executive Director 172.5 346.2 Market Capitalization 14,21,257
Samir Seksaria CFO - 95.4 Less : Cash & Equivalents ( 13,286)
Pradeep Manohar Gaitonde Company Secretary - 37.3 Add : Total Debt 8,021
As a policy, N Chandrasekaran, Chairman, has abstained from receiving commission from the Company and hence not Add : Minority Interest 830
stated.
Enterprise Value 14,16,822
Appointed as the Chief Executive Officer and Managing Director w.e.f. June 1, 2023
(-) Remuneration received in FY 2024 is not comparable with remuneration for FY 2023 (for part of the year) and hence not stated.

Future Vision
• TCS aims to drive digital transformation for its clients by leveraging emerging technologies such as artificial intelligence, machine learning, blockchain,
cloud computing, and the Internet of Things (IoT). This includes providing innovative solutions that enhance operational efficiency, customer experience,
and business agility.
• TCS is committed to sustainability and aims to integrate environmentally friendly practices into its operations and client solutions. This includes
initiatives to reduce carbon footprints, promote renewable energy, and implement sustainable supply chain practices.
• TCS plans to continue developing specialized solutions tailored to various industries, including banking and financial services, healthcare, retail, and
manufacturing. These solutions are designed to address specific industry challenges and help clients achieve their business objectives.
• The company envisions a future where continuous learning and upskilling of employees are critical. TCS is investing in training programs and platforms to
ensure its workforce remains at the cutting edge of technology and business practices.
• TCS aims to expand its global footprint by entering new markets and strengthening its presence in existing ones. This includes strategic acquisitions and
partnerships to enhance its capabilities and market reach.
• TCS is dedicated to fostering a culture of innovation and investing in research and development. The company plans to collaborate with academic
institutions, startups, and other technology leaders to drive innovation and create new value propositions for its clients.
 Historical Financial Statement - TATA CONSULTANCY SERVICES LTD
Year Mar-15 A Mar-16 A Mar-17 A Mar-18 A Mar-19 A Mar-20 A Mar-21 A Mar-22 A Mar-23 A Mar-24 A LTM
Income Statement
Sales ₹ 94,648.4 ₹ 1,08,646.0 ₹ 1,17,966.0 ₹ 1,23,104.0 ₹ 1,46,463.0 ₹ 1,56,949.0 ₹ 1,64,177.0 ₹ 1,91,754.0 ₹ 2,25,458.0 ₹ 2,40,893.0 ₹ 2,40,893.0
Sales Growth 14.79% 8.58% 4.36% 18.98% 7.16% 4.61% 16.80% 17.58% 6.85% -

COGS ₹ 63,761.0 ₹ 57,919.0 ₹ 64,429.0 ₹ 69,096.0 ₹ 80,516.0 ₹ 87,857.0 ₹ 93,276.0 ₹ 1,08,717.0 ₹ 1,29,403.0 ₹ 1,43,833.0 ₹ 1,76,597.0
COGS % Sales 67.37% 53.31% 54.62% 56.13% 54.97% 55.98% 56.81% 56.70% 57.40% 59.71% 73.31%

Gross Profit ₹ 30,887.5 ₹ 50,727.0 ₹ 53,537.0 ₹ 54,008.0 ₹ 65,947.0 ₹ 69,092.0 ₹ 70,901.0 ₹ 83,037.0 ₹ 96,055.0 ₹ 97,060.0 ₹ 64,296.0
Gross Margin 32.63% 46.69% 45.38% 43.87% 45.03% 44.02% 43.19% 43.30% 42.60% 40.29% 26.69%

Selling & General expense ₹ 6,405.8 ₹ 20,050.0 ₹ 21,226.0 ₹ 21,492.0 ₹ 26,441.0 ₹ 26,983.0 ₹ 24,355.0 ₹ 29,980.0 ₹ 36,796.0 ₹ 32,764.0 -
S&G Exp % Sales 6.77% 18.45% 17.99% 17.46% 18.05% 17.19% 14.83% 15.63% 16.32% 13.60%

EBITDA ₹ 24,481.7 ₹ 30,677.0 ₹ 32,311.0 ₹ 32,516.0 ₹ 39,506.0 ₹ 42,109.0 ₹ 46,546.0 ₹ 53,057.0 ₹ 59,259.0 ₹ 64,296.0 ₹ 64,296.0
EBITDA Margin 25.87% 28.24% 27.39% 26.41% 26.97% 26.83% 28.35% 27.67% 26.28% 26.69% 26.69%

Depreciation ₹ 1,798.7 ₹ 1,888.0 ₹ 1,987.0 ₹ 2,014.0 ₹ 2,056.0 ₹ 3,529.0 ₹ 4,065.0 ₹ 4,604.0 ₹ 5,022.0 ₹ 4,985.0 ₹ 4,985.0
Depreciation % Sales 1.90% 1.74% 1.68% 1.64% 1.40% 2.25% 2.48% 2.40% 2.23% 2.07% 2.07%

EBIT ₹ 22,683.0 ₹ 28,789.0 ₹ 30,324.0 ₹ 30,502.0 ₹ 37,450.0 ₹ 38,580.0 ₹ 42,481.0 ₹ 48,453.0 ₹ 54,237.0 ₹ 59,311.0 ₹ 59,311.0
EBIT Margin 23.97% 26.50% 25.71% 24.78% 25.57% 24.58% 25.88% 25.27% 24.06% 24.62% 24.62%

Interest ₹ 104.2 ₹ 33.0 ₹ 32.0 ₹ 52.0 ₹ 198.0 ₹ 924.0 ₹ 637.0 ₹ 784.0 ₹ 779.0 ₹ 778.0 ₹ 778.0
Interest % Sales 0.11% 0.03% 0.03% 0.04% 0.14% 0.59% 0.39% 0.41% 0.35% 0.32% 0.32%

EBT ₹ 22,578.8 ₹ 28,756.0 ₹ 30,292.0 ₹ 30,450.0 ₹ 37,252.0 ₹ 37,656.0 ₹ 41,844.0 ₹ 47,669.0 ₹ 53,458.0 ₹ 58,533.0 ₹ 58,533.0
EBT Margin 23.86% 26.47% 25.68% 24.74% 25.43% 23.99% 25.49% 24.86% 23.71% 24.30% 24.30%

Taxes ₹ 6,238.8 ₹ 7,502.0 ₹ 8,156.0 ₹ 8,212.0 ₹ 10,001.0 ₹ 9,801.0 ₹ 11,198.0 ₹ 13,238.0 ₹ 14,604.0 ₹ 15,898.0 ₹ 15,898.0
Effective Tax Rate 27.63% 26.09% 26.92% 26.97% 26.85% 26.03% 26.76% 27.77% 27.32% 27.16% 27.16%

Net Profit ₹ 16,340.0 ₹ 21,254.0 ₹ 22,136.0 ₹ 22,238.0 ₹ 27,251.0 ₹ 27,855.0 ₹ 30,646.0 ₹ 34,431.0 ₹ 38,854.0 ₹ 42,635.0 ₹ 42,635.0
Net Margin 17.26% 19.56% 18.76% 18.06% 18.61% 17.75% 18.67% 17.96% 17.23% 17.70% 17.70%

No of Equity Shares 391.75 394.09 394.09 382.86 375.24 375.24 369.91 365.91 365.91 361.81 -

Earning per Share ₹ 41.7 ₹ 53.9 ₹ 56.2 ₹ 58.1 ₹ 72.6 ₹ 74.2 ₹ 82.8 ₹ 94.1 ₹ 106.2 ₹ 117.8 -
EPS Growth 29.30% 4.15% 3.41% 25.03% 2.22% 11.61% 13.58% 12.85% 10.97% -

Dividend per Share ₹ 39.5 ₹ 21.7 ₹ 23.5 ₹ 24.9 ₹ 30.0 ₹ 73.0 ₹ 38.0 ₹ 43.0 ₹ 115.0 ₹ 73.0 -
Dividend payout ratio 10.08% 5.52% 5.96% 6.52% 7.99% 19.44% 10.28% 11.75% 31.44% 20.19% -

Retained Earning 89.92% 94.48% 94.04% 93.48% 92.01% 80.56% 89.72% 88.25% 0.00% 79.81% -
# Balance Sheet

Equity Share Capital ₹ 195.9 ₹ 197.0 ₹ 197.0 ₹ 191.0 ₹ 375.0 ₹ 375.0 ₹ 370.0 ₹ 366.0 ₹ 366.0 ₹ 362.0
Reserves ₹ 50,438.9 ₹ 70,875.0 ₹ 86,017.0 ₹ 84,937.0 ₹ 89,071.0 ₹ 83,751.0 ₹ 86,063.0 ₹ 88,773.0 ₹ 90,058.0 ₹ 90,127.0
Borrowings ₹ 357.7 ₹ 245.0 ₹ 289.0 ₹ 247.0 ₹ 62.0 ₹ 8,174.0 ₹ 7,795.0 ₹ 7,818.0 ₹ 7,688.0 ₹ 8,021.0
Other Liabilities ₹ 22,325.5 ₹ 16,974.0 ₹ 15,830.0 ₹ 19,751.0 ₹ 24,393.0 ₹ 27,820.0 ₹ 35,764.0 ₹ 43,967.0 ₹ 44,747.0 ₹ 46,962.0
Total Liabilities ₹ 73,317.9 ₹ 88,291.0 ₹ 1,02,333.0 ₹ 1,05,126.0 ₹ 1,13,901.0 ₹ 1,20,120.0 ₹ 1,29,992.0 ₹ 1,40,924.0 ₹ 1,42,859.0 ₹ 1,45,472.0

Fixed Asstes Net Block ₹ 11,638.2 ₹ 11,774.0 ₹ 11,701.0 ₹ 11,973.0 ₹ 12,290.0 ₹ 20,928.0 ₹ 21,021.0 ₹ 21,298.0 ₹ 20,515.0 ₹ 19,604.0
Capital Work in Progress ₹ 2,766.4 ₹ 1,670.0 ₹ 1,541.0 ₹ 1,278.0 ₹ 963.0 ₹ 906.0 ₹ 926.0 ₹ 1,205.0 ₹ 1,234.0 ₹ 1,564.0
Investments ₹ 1,661.8 ₹ 22,822.0 ₹ 41,980.0 ₹ 36,008.0 ₹ 29,330.0 ₹ 26,356.0 ₹ 29,373.0 ₹ 30,485.0 ₹ 37,163.0 ₹ 31,762.0
Other Assets ₹ 18,241.6 ₹ 21,148.0 ₹ 20,324.0 ₹ 23,737.0 ₹ 31,114.0 ₹ 31,727.0 ₹ 39,256.0 ₹ 27,885.0 ₹ 22,933.0 ₹ 25,651.0
Total Non Current Assets ₹ 34,307.9 ₹ 57,414.0 ₹ 75,546.0 ₹ 72,996.0 ₹ 73,697.0 ₹ 79,917.0 ₹ 90,576.0 ₹ 80,873.0 ₹ 81,845.0 ₹ 78,581.0

Receivables ₹ 20,437.9 ₹ 24,073.0 ₹ 22,617.0 ₹ 24,943.0 ₹ 27,346.0 ₹ 30,532.0 ₹ 30,079.0 ₹ 41,810.0 ₹ 49,954.0 ₹ 53,577.0
Inventory ₹ 16.1 ₹ 16.0 ₹ 21.0 ₹ 26.0 ₹ 10.0 ₹ 5.0 ₹ 8.0 ₹ 20.0 ₹ 28.0 ₹ 28.0
Cash & Bank ₹ 18,556.0 ₹ 6,788.0 ₹ 4,149.0 ₹ 7,161.0 ₹ 12,848.0 ₹ 9,666.0 ₹ 9,329.0 ₹ 18,221.0 ₹ 11,032.0 ₹ 13,286.0
Total Current Assets ₹ 39,010.1 ₹ 30,877.0 ₹ 26,787.0 ₹ 32,130.0 ₹ 40,204.0 ₹ 40,203.0 ₹ 39,416.0 ₹ 60,051.0 ₹ 61,014.0 ₹ 66,891.0

Total Assets ₹ 73,317.9 ₹ 88,291.0 ₹ 1,02,333.0 ₹ 1,05,126.0 ₹ 1,13,901.0 ₹ 1,20,120.0 ₹ 1,29,992.0 ₹ 1,40,924.0 ₹ 1,42,859.0 ₹ 1,45,472.0

Check TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE TRUE
Cash Flow Statement

Operating Activity -
Profit from operations ₹ 26,103.0 ₹ 31,631.0 ₹ 33,800.0 ₹ 32,885.0 ₹ 40,720.0 ₹ 42,882.0 ₹ 47,031.0 ₹ 54,204.0 ₹ 59,148.0 ₹ 63,709.0
Receivables (₹ 2,158.0) (₹ 2,936.0) ₹ 680.0 (₹ 1,833.0) (₹ 2,883.0) (₹ 3,295.0) ₹ 1,059.0 (₹ 5,144.0) (₹ 7,683.0) (₹ 3,332.0)
Inventory (₹ 1.0) - - (₹ 5.0) ₹ 16.0 ₹ 5.0 (₹ 3.0) (₹ 12.0) (₹ 8.0) -
Payables - (₹ 2,039.0) (₹ 201.0) (₹ 346.0) ₹ 1,496.0 ₹ 446.0 (₹ 93.0) ₹ 186.0 ₹ 2,036.0 (₹ 632.0)
Loans Advances (₹ 712.0) (₹ 798.0) - - (₹ 499.0) - (₹ 17.0) (₹ 116.0) ₹ 261.0 (₹ 301.0)
Other WC items ₹ 3,618.0 ₹ 829.0 (₹ 1,110.0) ₹ 1,975.0 (₹ 299.0) (₹ 1,823.0) (₹ 83.0) ₹ 2,317.0 ₹ 1,177.0 (₹ 2,617.0)
Direct taxes (₹ 7,482.0) (₹ 7,578.0) (₹ 7,946.0) (₹ 7,609.0) (₹ 9,958.0) (₹ 5,846.0) (₹ 9,092.0) (₹ 11,486.0) (₹ 12,966.0) (₹ 12,489.0)
Cash from Operating Activity ₹ 19,368.0 ₹ 19,109.0 ₹ 25,223.0 ₹ 25,067.0 ₹ 28,593.0 ₹ 32,369.0 ₹ 38,802.0 ₹ 39,949.0 ₹ 41,965.0 ₹ 44,338.0

Investing Activity -
Fixed assets purchased (₹ 2,949.0) (₹ 1,987.0) (₹ 1,989.0) (₹ 1,862.0) (₹ 2,231.0) (₹ 2,730.0) (₹ 3,176.0) (₹ 2,995.0) (₹ 3,100.0) (₹ 2,674.0)
Fixed assets sold ₹ 7.0 ₹ 22.0 ₹ 36.0 ₹ 58.0 ₹ 99.0 ₹ 161.0 ₹ 37.0 ₹ 31.0 ₹ 37.0 ₹ 24.0
Investments purchased (₹ 67,371.0) ########### (₹ 1,21,423.0) (₹ 97,473.0) (₹ 96,751.0) (₹ 80,002.0) (₹ 54,462.0) (₹ 75,374.0) (₹ 1,29,745.0) (₹ 1,41,011.0)
Investments sold ₹ 69,361.0 ₹ 97,154.0 ₹ 1,02,798.0 ₹ 1,03,482.0 ₹ 1,04,133.0 ₹ 84,089.0 ₹ 51,630.0 ₹ 73,852.0 ₹ 1,22,687.0 ₹ 1,47,204.0
Interest received ₹ 1,994.0 ₹ 1,816.0 ₹ 1,788.0 ₹ 2,623.0 ₹ 2,619.0 ₹ 3,729.0 ₹ 2,730.0 ₹ 2,700.0 ₹ 3,080.0 ₹ 2,990.0
Dividends received ₹ 9.0 ₹ 11.0 ₹ 1.0 ₹ 9.0 ₹ 18.0 ₹ 8.0 ₹ 8.0 ₹ 4.0 ₹ 13.0 ₹ 26.0
Acquisition of companies (₹ 264.0) - - - (₹ 50.0) - - - - -
Inter corporate deposits ₹ 155.0 (₹ 1,460.0) ₹ 1,619.0 (₹ 2,230.0) (₹ 2,927.0) (₹ 473.0) (₹ 3,058.0) ₹ 4,879.0 ₹ 5,361.0 ₹ 846.0
Other investing items (₹ 2,750.0) ₹ 16,281.0 ₹ 275.0 (₹ 1,503.0) (₹ 3,265.0) ₹ 4,186.0 (₹ 1,665.0) (₹ 3,835.0) ₹ 2,215.0 (₹ 1,314.0)
Cash from Investing Activity (₹ 1,808.0) (₹ 5,010.0) (₹ 16,895.0) ₹ 3,104.0 ₹ 1,645.0 ₹ 8,968.0 (₹ 7,956.0) (₹ 738.0) ₹ 548.0 ₹ 6,091.0

Financing Activity -
Proceeds from shares - ₹ 2.0 - - - - - - ₹ 18.0 ₹ 425.0
Proceeds from borrowings ₹ 43.0 - ₹ 87.0 - - - - - - -
Repayment of borrowings - (₹ 73.0) - (₹ 19.0) (₹ 181.0) - - - - -
Interest paid fin (₹ 105.0) (₹ 20.0) (₹ 20.0) (₹ 40.0) (₹ 186.0) (₹ 924.0) (₹ 634.0) (₹ 698.0) (₹ 779.0) (₹ 699.0)
Dividends paid (₹ 17,106.0) (₹ 9,515.0) (₹ 10,973.0) (₹ 10,760.0) (₹ 11,472.0) (₹ 37,702.0) (₹ 10,907.0) (₹ 13,375.0) (₹ 41,410.0) (₹ 25,218.0)
Financial liabilities - (₹ 60.0) (₹ 66.0) (₹ 24.0) (₹ 13.0) (₹ 1,062.0) (₹ 1,336.0) (₹ 1,417.0) (₹ 1,515.0) (₹ 1,614.0)
Other financing items - - (₹ 54.0) (₹ 16,042.0) (₹ 16,045.0) (₹ 227.0) (₹ 19,757.0) (₹ 18,091.0) (₹ 4,192.0) (₹ 21,430.0)
Cash from Financing Activity (₹ 17,168.0) (₹ 9,666.0) (₹ 11,026.0) (₹ 26,885.0) (₹ 27,897.0) (₹ 39,915.0) (₹ 32,634.0) (₹ 33,581.0) (₹ 47,878.0) (₹ 48,536.0)

Net Cash Flow ₹ 392.0 ₹ 4,433.0 (₹ 2,698.0) ₹ 1,286.0 ₹ 2,341.0 ₹ 1,422.0 (₹ 1,788.0) ₹ 5,630.0 (₹ 5,365.0) ₹ 1,893.0
 Common Size Statement - TATA CONSULTANCY SERVICES LTD
Common Size Income Statement

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Sales 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Raw Material Cost 0.00% 0.00% 0.08% 0.07% 0.03% 0.01% 0.01% 0.02% 0.02% 0.02%
Change in Inventory 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Power and Fuel 0.61% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Mfr. Exp 25.87% 2.37% 2.30% 2.12% 1.52% 1.20% 0.88% 0.59% 0.82% 1.52%
Employee Cost 40.89% 50.94% 52.24% 53.93% 53.42% 54.76% 55.92% 56.09% 56.56% 58.17%
Selling and admin 5.12% 14.35% 13.90% 13.65% 13.92% 13.08% 11.16% 12.09% 12.82% 10.03%
Other Expenses 1.65% 4.11% 4.10% 3.80% 4.13% 4.11% 3.67% 3.54% 3.50% 3.58%
Other Income 3.93% 2.84% 3.58% 2.96% 2.94% 2.93% 1.17% 2.10% 1.53% 1.44%
Depreciation 1.90% 1.74% 1.68% 1.64% 1.40% 2.25% 2.48% 2.40% 2.23% 2.07%
Interest 0.11% 0.03% 0.03% 0.04% 0.14% 0.59% 0.39% 0.41% 0.35% 0.32%
Profit before tax 27.79% 29.31% 29.26% 27.69% 28.38% 26.92% 26.65% 26.95% 25.24% 25.74%
Tax 6.59% 6.90% 6.91% 6.67% 6.83% 6.24% 6.82% 6.90% 6.48% 6.60%
Net profit 20.97% 22.34% 22.29% 20.98% 21.49% 20.61% 19.75% 19.99% 18.69% 19.06%
Dividend Amount 16.35% 7.89% 7.85% 7.76% 7.68% 17.44% 8.56% 8.21% 18.67% 10.97%
EBITDA 25.87% 28.24% 27.39% 26.41% 26.97% 26.83% 28.35% 27.67% 26.28% 26.69%

Common Size Balance Sheet

Particulars Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Total Liabilities 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Equity Share Capital 0.27% 0.22% 0.19% 0.18% 0.33% 0.31% 0.28% 0.26% 0.26% 0.25%
Reserves 68.79% 80.27% 84.06% 80.80% 78.20% 69.72% 66.21% 62.99% 63.04% 61.95%
Borrowings 0.49% 0.28% 0.28% 0.23% 0.05% 6.80% 6.00% 5.55% 5.38% 5.51%
Other Liabilities 30.45% 19.23% 15.47% 18.79% 21.42% 23.16% 27.51% 31.20% 31.32% 32.28%

Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Net Block 15.87% 13.34% 11.43% 11.39% 10.79% 17.42% 16.17% 15.11% 14.36% 13.48%
Capital Work in Progress 3.77% 1.89% 1.51% 1.22% 0.85% 0.75% 0.71% 0.86% 0.86% 1.08%
Investments 2.27% 25.85% 41.02% 34.25% 25.75% 21.94% 22.60% 21.63% 26.01% 21.83%
Other Assets 78.09% 58.92% 46.04% 53.14% 62.61% 59.88% 60.52% 62.40% 58.76% 63.61%
Receivables 27.88% 27.27% 22.10% 23.73% 24.01% 25.42% 23.14% 29.67% 34.97% 36.83%
Inventory 0.02% 0.02% 0.02% 0.02% 0.01% 0.00% 0.01% 0.01% 0.02% 0.02%
Cash & Bank 25.31% 7.69% 4.05% 6.81% 11.28% 8.05% 7.18% 12.93% 7.72% 9.13%
 Ratio Analysis - TATA CONSULTANCY SERVICES LTD
Year Mar-15 A Mar-16 A Mar-17 A Mar-18 A Mar-19 A Mar-20 A Mar-21 A Mar-22 A Mar-23 A Mar-24 A Trends Means Median

Sales Growth 14.79% 8.58% 4.36% 18.98% 7.16% 4.61% 16.80% 17.58% 6.85% 11.08% 8.58%
EBITDA Growth 25.31% 5.33% 0.63% 21.50% 6.59% 10.54% 13.99% 11.69% 8.50% 11.56% 10.54%
EBIT Growth 26.92% 5.33% 0.59% 22.78% 3.02% 10.11% 14.06% 11.94% 9.36% 11.57% 10.11%
Net Profit Growth 30.07% 4.15% 0.46% 22.54% 2.22% 10.02% 12.35% 12.85% 9.73% 11.60% 10.02%
Dividend Growth -44.95% 8.05% 6.17% 20.19% 143.33% -47.90% 13.16% 167.44% -36.50% 25.44% 8.05%

Gross Margin 32.63% 46.69% 45.38% 43.87% 45.03% 44.02% 43.19% 43.30% 42.60% 40.29% 42.70% 43.59%
EBITDA Margin 25.87% 28.24% 27.39% 26.41% 26.97% 26.83% 28.35% 27.67% 26.28% 26.69% 27.07% 26.90%
EBIT Margin 23.97% 26.50% 25.71% 24.78% 25.57% 24.58% 25.88% 25.27% 24.06% 24.62% 25.09% 25.02%
EBT Margin 23.86% 26.47% 25.68% 24.74% 25.43% 23.99% 25.49% 24.86% 23.71% 24.30% 24.85% 24.80%
Net Profit Margin 17.26% 19.56% 18.76% 18.06% 18.61% 17.75% 18.67% 17.96% 17.23% 17.70% 18.16% 18.01%

Sales Expenses % Sales 6.77% 18.45% 17.99% 17.46% 18.05% 17.19% 14.83% 15.63% 16.32% 13.60% 15.63% 16.76%
Depreciation % Sales 1.90% 1.74% 1.68% 1.64% 1.40% 2.25% 2.48% 2.40% 2.23% 2.07% 1.98% 1.98%
Operting Income % Sales 23.97% 26.50% 25.71% 24.78% 25.57% 24.58% 25.88% 25.27% 24.06% 24.62% 25.09% 25.02%

Return on Capital Employes 44.48% 40.37% 35.06% 35.73% 41.84% 41.80% 45.08% 49.97% 55.28% 60.21% 44.98% 43.16%
Retained Earning % 89.92% 94.48% 94.04% 93.48% 92.01% 80.56% 89.72% 88.25% 0.00% 79.81% 80.23% 89.82%
Return on Equity % 32.27% 29.90% 25.68% 26.12% 30.47% 33.11% 35.46% 38.63% 42.97% 47.12% 34.17% 32.69%
Self Sustained Growth Rate 29.02% 28.25% 24.14% 24.42% 28.03% 26.67% 31.81% 34.09% 0.00% 37.60% 26.40% 28.14%
Interest Coverage Ratio 217.71x 872.39x 947.63x 586.58x 189.14x 41.75x 66.69x 61.80x 69.62x 76.24x 312.95x 132.69x

Debtor Turnover Ratio 4.63x 4.51x 5.22x 4.94x 5.36x 5.14x 5.46x 4.59x 4.51x 4.50x 4.88x 4.78x
Creditors Turnover Ratio 4.24x 6.40x 7.45x 6.23x 6.00x 5.64x 4.59x 4.36x 5.04x 5.13x 5.51x 5.39x
Inventory Turnover 5889.76x 6790.38x 5617.43x 4734.77x 14646.30x 31389.80x 20522.13x 9587.70x 8052.07x 8603.32x 11583.36x 8327.70x
Fixed Asset Turnover 8.13x 9.23x 10.08x 10.28x 11.92x 7.50x 7.81x 9.00x 10.99x 12.29x 9.72x 9.65x
Capital Turnover Ratio 1.87x 1.53x 1.37x 1.45x 1.64x 1.87x 1.90x 2.15x 2.49x 2.66x 1.89x 1.87x

Debtor Days 79 81 70 74 68 71 67 80 81 81 75 76
Payable Days 86 57 49 59 61 65 80 84 72 71 68 68
Inventory Days 0 0 0 0 0 0 0 0 0 0 0 0
Cash Conversion Cycle -7 24 21 15 7 6 -13 -4 8 10 7 8

CFO/Sales 20.46% 17.59% 21.38% 20.36% 19.52% 20.62% 23.63% 20.83% 18.61% 18.41% 20.14% 20.41%
CFO/Total Assets 26.42% 21.64% 24.65% 23.84% 25.10% 26.95% 29.85% 28.35% 29.38% 30.48% 26.67% 26.68%
CFO/Total Debt 86.75% 112.58% 159.34% 126.92% 117.22% 116.35% 108.49% 90.86% 93.78% 94.41% 110.67% 110.54%
 Forecasting - TATA CONSULTANCY SERVICES LTD
Sales EBITDA EBIT
Year Weight Year Sales (INR) Sales Growth % Year Weight Year EBITDA EBITDA Growth Year Weight Year EBIT (INR) EBIT Growth %
1 2015 A ₹ 94,648.4 - 1 2015 A ₹ 24,481.7 - 1 2015 A ₹ 22,683.0 -
2 2016 A ₹ 1,08,646.0 14.79% 2 2016 A ₹ 30,677.0 25.31% 2 2016 A ₹ 28,789.0 26.92%
3 2017 A ₹ 1,17,966.0 8.58% 3 2017 A ₹ 32,311.0 5.33% 3 2017 A ₹ 30,324.0 5.33%
4 2018 A ₹ 1,23,104.0 4.36% 4 2018 A ₹ 32,516.0 0.63% 4 2018 A ₹ 30,502.0 0.59%
5 2019 A ₹ 1,46,463.0 18.98% 5 2019 A ₹ 39,506.0 21.50% 5 2019 A ₹ 37,450.0 22.78%
6 2020 A ₹ 1,56,949.0 7.16% 6 2020 A ₹ 42,109.0 6.59% 6 2020 A ₹ 38,580.0 3.02%
7 2021 A ₹ 1,64,177.0 4.61% 7 2021 A ₹ 46,546.0 10.54% 7 2021 A ₹ 42,481.0 10.11%
8 2022 A ₹ 1,91,754.0 16.80% 8 2022 A ₹ 53,057.0 13.99% 8 2022 A ₹ 48,453.0 14.06%
9 2023 A ₹ 2,25,458.0 17.58% 9 2023 A ₹ 59,259.0 11.69% 9 2023 A ₹ 54,237.0 11.94%
10 2024 A ₹ 2,40,893.0 6.85% 10 2024 A ₹ 64,296.0 8.50% 10 2024 A ₹ 59,311.0 9.36%
11 2025 F ₹ 2,44,890.2 1.66% 11 2025 F ₹ 66,036.7 2.71% 11 2025 F ₹ 60,464.3 1.94%
12 2026 F ₹ 2,60,869.2 6.52% 12 2026 F ₹ 70,320.5 6.49% 12 2026 F ₹ 64,315.8 6.37%
13 2027 F ₹ 2,76,848.1 6.13% 13 2027 F ₹ 74,604.3 6.09% 13 2027 F ₹ 68,167.4 5.99%
14 2028 F ₹ 2,92,827.1 5.77% 14 2028 F ₹ 78,888.1 5.74% 14 2028 F ₹ 72,018.9 5.65%
15 2029 F ₹ 3,08,806.1 5.46% 15 2029 F ₹ 83,171.9 5.43% 15 2029 F ₹ 75,870.4 5.35%

EBT Net Profit Earning Per Share

Year Weight Year EBT (INR) EBT Growth % Year Weight YearNet Profit (INR)Net Profit Growth% Year Weight Year EPS (INR) EPS Growth %
1 2015 A ₹ 22,578.8 - 1 2015 A ₹ 16,340.0 - 1 2015 A ₹ 41.7 -
2 2016 A ₹ 28,756.0 27.36% 2 2016 A ₹ 21,254.0 30.07% 2 2016 A ₹ 53.9 29.30%
3 2017 A ₹ 30,292.0 5.34% 3 2017 A ₹ 22,136.0 4.15% 3 2017 A ₹ 56.2 4.15%
4 2018 A ₹ 30,450.0 0.52% 4 2018 A ₹ 22,238.0 0.46% 4 2018 A ₹ 58.1 3.41%
5 2019 A ₹ 37,252.0 22.34% 5 2019 A ₹ 27,251.0 22.54% 5 2019 A ₹ 72.6 25.03%
6 2020 A ₹ 37,656.0 1.08% 6 2020 A ₹ 27,855.0 2.22% 6 2020 A ₹ 74.2 2.22%
7 2021 A ₹ 41,844.0 11.12% 7 2021 A ₹ 30,646.0 10.02% 7 2021 A ₹ 82.8 11.61%
8 2022 A ₹ 47,669.0 13.92% 8 2022 A ₹ 34,431.0 12.35% 8 2022 A ₹ 94.1 13.58%
9 2023 A ₹ 53,458.0 12.14% 9 2023 A ₹ 38,854.0 12.85% 9 2023 A ₹ 106.2 12.85%
10 2024 A ₹ 58,533.0 9.49% 10 2024 A ₹ 42,635.0 9.73% 10 2024 A ₹ 117.8 10.97%
11 2025 F ₹ 59,448.0 1.56% 11 2025 F ₹ 43,269.3 1.49% 11 2025 F ₹ 119.7 1.54%
12 2026 F ₹ 63,193.3 6.30% 12 2026 F ₹ 45,979.3 6.26% 12 2026 F ₹ 127.6 6.67%
13 2027 F ₹ 66,938.5 5.93% 13 2027 F ₹ 48,689.4 5.89% 13 2027 F ₹ 135.6 6.25%
14 2028 F ₹ 70,683.8 5.60% 14 2028 F ₹ 51,399.4 5.57% 14 2028 F ₹ 143.6 5.88%
15 2029 F ₹ 74,429.1 5.30% 15 2029 F ₹ 54,109.4 5.27% 15 2029 F ₹ 151.6 5.56%
 Weighted Average Cost of Capital - TATA CONSULTANCY SERVICES LTD

All figures are in INR unless stated otherwwise.

Peer Comps
Debt / Debt / Levered Unleverd
Name Country Total Debt Total Equity Tax Rate 1 Equity Capital Beta
2
Beta
3

TCS India 8,021.0 14,23,336.1 30.00% 0.56% 0.56% 0.99 0.98

Infosys India 8,359.0 6,52,963.0 30.00% 1.28% 1.26% 1.20 1.19
HCL Technologies India 5,756.0 3,94,592.5 30.00% 1.46% 1.44% 0.99 0.98
Wipro India 16,464.9 2,67,172.5 30.00% 6.16% 5.80% 1.33 1.28
LTIMindtree India 2,070.6 1,59,090.8 30.00% 1.30% 1.28% 1.39 1.38

Average 30.00% 2.15% 2.07% 1.18 1.16

Median 30.00% 1.30% 1.28% 1.20 1.19

Cost of Debt Cost of Equity

Pre-Tax Cost of Debt 9.70% Risk Free Rate 7.00%

Tax Rate 30.00% Equity Risk Premium 8.61%
4
Post Tax Cost of Debt 6.79% Levered Beta 1.21
Cost of Equity 17.38%

Capital Strucutre Levered Beta

Current Target Comps Median Unlevered Beta 1.19

Total Debt 8021.0 0.56% 2.07% Target Debt / Equity 2.11%
Market Capitalization 1423336.1 99.44% 97.93% Tax Rate 30.00%
Total Capitalization 1431357.1 100.00% 100.00% Levered Beta 1.21

Debt / Equity 0.56% 2.11% Weighted Average Cost of Capital

Notes: Cost of Equity 17.38%

1. Tax Rte considered as Marginal Tax Rate for the country Equity Weight 97.93%
2. Levered Beta is based on 2 years weekly data
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate)*Debt/Equity) Cost of Debt 6.79%
4. Levered Beta = Unlevered Beta/(1+(1-Tax Rate)*Debt/Equity) Debt Weight 2.07%

WACC 17.16%
 Intrincisc Growth - TATA CONSULTANCY SERVICES LTD
Calculation of ROIC Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Current Assets
Inventories 5.0 8.0 20.0 28.0 28.0
Trade receivables 30,532.0 30,079.0 41,810.0 49,954.0 53,577.0
Short term loans 330.0 270.0 402.0 520.0 1,656.0
Other asset items 31,397.0 38,986.0 27,483.0 22,413.0 23,995.0
Total Current Assets 62,264.0 69,343.0 69,715.0 72,915.0 79,256.0

Current Liabilities
Trade Payables 6,740.0 7,860.0 8,045.0 10,515.0 9,981.0
Advance from Customers 345.0 312.0 468.0 543.0 1,841.0
Other liability items 20,112.0 26,917.0 34,747.0 32,907.0 34,310.0
Total Current Liabilites 27,197.0 35,089.0 43,260.0 43,965.0 46,132.0

Net Working Capital 35,067.0 34,254.0 26,455.0 28,950.0 33,124.0

Non - Current Assets

Land 1,041.0 1,041.0 1,126.0 1,304.0 1,294.0
Building 18,645.0 18,524.0 17,007.0 18,635.0 19,314.0
Plant Machinery 681.0 737.0 770.0 828.0 878.0
Equipments 2,522.0 2,587.0 2,693.0 2,823.0 2,982.0
Computers 8,824.0 10,873.0 12,301.0 13,725.0 14,544.0
Furniture n fittings 3,925.0 3,943.0 3,968.0 4,130.0 4,346.0
Vehicles 68.0 86.0 71.0 93.0 97.0
Intangible Assets 2,158.0 2,538.0 3,484.0 3,750.0 3,836.0
Other fixed assets 120.0 122.0 121.0 126.0 127.0
Gross Block 37,984.0 40,451.0 41,541.0 45,414.0 47,418.0
Accumulated Depreciation 37,984.0 40,451.0 41,541.0 45,414.0 47,418.0
Net Non Current Assets 75,968.0 80,902.0 83,082.0 90,828.0 94,836.0

Invested Capital 1,11,035.0 1,15,156.0 1,09,537.0 1,19,778.0 1,27,960.0

EBIT 38,580.0 42,481.0 48,453.0 54,237.0 59,311.0

ROIC 34.75% 36.89% 44.23% 45.28% 46.35%

Calculation Of Reinvestment Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Net Capex -4,087.0 2,832.0 1,522.0 7,058.0 -6,193.0

Change in Working Capital 6,919.0 ( 1,310.0) 5,536.0 ( 13,251.0)

EBIT 38,580.0 42,481.0 48,453.0 54,237.0 59,311.0

Marginal Tax Rate 25.00% 25.00% 25.00% 25.00% 25.00%
EBIT(1-T) 28,935.0 31,860.8 36,339.8 40,677.8 44,483.3

Reinvestment -1,255.0 4,354.0 8,580.0 865.0

Reinvestment Rate -3.94% 11.98% 21.09% 1.94%

4 year Average 7.77%

4 Year Median 6.96%

Calculation of Growth Rate Mar-20 Mar-21 Mar-22 Mar-23 Mar-24

Reivestment Rate -3.94% 11.98% 21.09% 1.94%

ROIC 36.89% 44.23% 45.28% 46.35%

Intrinsic Growth -1.45% 5.30% 9.55% 0.90%

4 year Average 3.57%

4 Year Median 3.10%
 DCF - TATA CONSULTANCY SERVICES LTD
Calculation of PV of FCFF Mar-24 A Mar-25 E Mar-26 E Mar-27 E Mar-28 E Mar-29 E

EBIT 59,311.00 67,531.50 67,531.50 67,531.50 67,531.50 67,531.50

Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
EBIT(1-T) 41,517.70 47,272.05 47,272.05 47,272.05 47,272.05 47,272.05
Less: Reinvestment Rate 6.96% 15.80% 24.64% 33.47% 42.31% 42.31%
Free Cash Flow to Firm (FCFF) 38,626.84 39,803.20 35,625.88 31,448.57 27,271.25 27,271.25
Mid Year Convention 0.5 1.5 2.5 3.5 4.5
Discounting Factor 0.924 0.789 0.673 0.575 0.490

PV of FCFF 36,773.34 28,093.83 21,167.83 15,667.90 13,373.37

Excepted Growth 13.86%

Terminal Growth 6.80%
WACC 17.16%

Calculation of Teminal Value Sensitivity Analysis - Enterprise Value

2,62,091.01 6.00% 8.00% 12% 17.16%
FCFF(n+1) 31,051.04 2.00% 495749.39 368858.35 267345.52 215517.73
WACC 17.16% 4.00% 876422.50 495749.39 305412.83 230782.39
Terminal Growth Rate 6.80% 6.80% -1788289.26 1383986.64 407901.75 262054.31
10.00% -265596.83 -646269.93 876422.50 327742.82
Terminal Value 2,99,795.32

Calculation of Equity Value per Share Sensitivity Analysis - Equity Value Per Share Value
761.11 10% 14.04% 17.16% 24%
PV of FCFF 1,15,076.28 3.00% 956.00 735.99 651.99 555.19
PV of Terminal Value 1,47,014.73 4.00% 1056.21 773.96 674.58 565.21
Value of Operating Assets 2,62,091.01 5.00% 1196.49 820.33 700.88 576.28
6.80% 1669.95 936.07 761.01 599.46
Add: Cash 13,286.00 7.00% 1757.63 952.59 769.01 602.34
Less: Debt -
Value of Equity 2,75,377.01
No.of Shares 361.81

Equity Value per Share 761.11

Share Price 3,928

Discount/ Premium 5.16x
 Comparable Company Valuation
Amount in Crores
Market Data Financials Valuation
Share Share Equity Net Enterprise Net
Company Ticker Price Outstanding Value Debt Value Revenue EBITDA Income EV/Revenue EV/EBITDA P/E
TCS TCS 3,928.2 361.8 14,21,262.0 -5,265.0 14,15,997.0 2,40,893.0 68,700.0 46,099.0 5.9x 20.6x 30.8x
Infosys INFY 1,570.0 415.2 6,51,848.3 -6,427.0 6,45,421.3 1,53,670.0 40,851.0 26,248.0 4.2x 15.8x 24.8x
HCL Technologies HCLTECH 1,456.0 271.4 3,95,114.7 -14,394.0 3,80,720.7 1,09,913.0 25,693.0 15,710.0 3.5x 14.8x 25.2x
Wipro WIPRO 510.7 523.0 2,67,091.0 6,769.6 2,73,860.6 89,760.3 19,176.1 11,112.1 3.1x 14.3x 24.0x
LTIMindtree LTIM 5,360.9 29.6 1,58,789.9 -745.4 1,58,044.5 35,517.0 7,089.3 4,584.6 4.4x 22.3x 34.6x
High 5.9x 22.3x 34.6x
75th Percentile 4.4x 20.6x 30.8x
Average 4.2x 17.6x 27.9x
Median 4.2x 15.8x 25.2x
25th Percentile 3.5x 14.8x 24.8x
Low 3.1x 14.3x 24.0x

TATA CONSULTANCY SERVICES LTD Comparable EV/Revenue EV/EBITDA P/E

Implied Enterprise Value 10,11,762.0 10,85,418.8 11,54,149.0
Net Debt -5,265.0 -5,265.0 -5,265.0
Impiled Market Value 10,17,027.0 10,90,683.8 11,59,414.0
Share Outstanding 361.8 361.8 361.8
Implied Value per Share 2810.94233 3014.5 3204.48293
Overvalued Overvalued Overvalued
Source: The Valuation School, Screener,in
 Value at Risk (VAR) & Monte Carlo Simulation
Date Adj Close Return Shorted Return Replication Simulated Returns Calculation of Value at Risk - M&M
28-07-2005 227.9 2.64 1.02 1 3.75%
14-05-2004 62.6 -0.65 0.19 2 -4.37% Historical Approach
21-04-2008 181.3 0.31 0.12 3 0.70% Mean -0.06%
18-05-2009 138.6 -0.92 0.11 4 0.75% Std Deviation 2.61%
11-03-2020 1793.1 15.74 0.10 5 1.48% Min -66.88%
27-03-2009 107.1 0.07 0.10 6 1.54% Max 102.47%
15-10-2008 100.0 -0.01 0.10 7 -2.47% CMP 3,934.0
23-10-2008 100.8 -0.91 0.10 8 2.82%
16-10-2014 1107.1 9.14 0.10 9 2.04% Percentile Confidence VAR % Stock Price VAR (INR)
14-10-2008 109.1 -0.06 0.09 10 3.92% 10.00% 90.0% -2.09% 4016.3 -82.3
18-04-2005 116.5 0.28 0.09 11 1.97% 5.00% 95.0% -2.95% 4050.2 -116.2
16-10-2008 91.1 -0.27 0.09 12 -3.00% 1.00% 99.0% -5.57% 4153.1 -219.1
26-09-2008 124.5 -0.22 0.09 13 0.21% 0.50% 99.5% -6.74% 4199.1 -265.1
10-07-2008 159.3 -0.03 0.09 14 2.13%
18-01-2008 164.2 1.49 0.09 15 -1.41% Calucation of Monte Carlo Simulation
11-06-2004 65.8 -0.85 0.08 16 -0.14% Mean -0.03%
17-10-2011 436.6 3.09 0.08 17 0.94% Std Deviation 2.62%
19-04-2005 106.8 -0.94 0.08 18 -0.82% Min -9.94%
20-03-2020 1661.7 15.39 0.08 19 1.61% Max 9.54%
03-11-2008 101.4 0.50 0.08 20 -1.42% CMP 3,934.0
13-05-2004 67.4 0.89 0.08 21 -2.68%
24-01-2003 35.6 -0.69 0.07 22 -1.42% Percentile Confidence VAR % Stock Price VAR (INR)
06-10-2008 114.0 -0.28 0.07 23 3.41% 10.00% 90.0% -3.39% 4067.3 -133.3
28-03-2008 158.9 0.65 0.07 24 7.56% 5.00% 95.0% -4.35% 4105.0 -171.0
17-11-2008 96.1 2.49 0.07 25 -5.59% 1.00% 99.0% -6.06% 4172.3 -238.3
13-08-2002 27.5 -0.99 0.07 26 5.26% 0.50% 99.5% -6.73% 4198.7 -264.7
06-03-2020 1942.5 61.78 0.07 27 3.32%
07-03-2003 30.9 -0.80 0.07 28 2.25%
23-07-2008 157.9 1.13 0.07 29 -2.34%
11-05-2004 74.1 -0.96 0.07 30 -3.82%
31-03-2020 1688.2 -0.54 0.07 31 4.59%
08-10-2021 3706.0 35.98 0.07 32 1.15%
10-12-2008 100.2 -0.33 0.07 33 -2.24%
12-09-2008 149.2 2.59 0.07 34 0.07%
09-01-2003 41.6 -0.97 0.07 35 0.66%
13-03-2020 1657.8 8.81 0.06 36 0.02%
10-04-2006 169.1 0.20 0.06 37 -3.07%
22-09-2008 141.2 -0.16 0.06 38 7.16%
 TATA CONSULTANCY SERVICES LTD
(TCS | BSE Code: 532540
INR 3928.2
52 Week (High - INR 4254.75& Low-INR 3193.40)

About the Company

Tata Consultancy Services Limited (TCS) an Indian multinational information technology (IT) services and consulting company headquartered in
Mumbai. It is a part of the Tata Group and operates in 150 locations across 46 countries. In March 2024, it was reported that TCS had more than
601,546 employees worldwide. TCS is the second-largest Indian company by market capitalization, the most valuable IT service brands worldwide, and
the top Big Tech (India) company. In 2012, it was the world's second-largest user of U.S. H-1B visas. TCS offers a consulting-led, cognitive powered,
integrated portfolio of business, technology and engineering services and solutions.

Financial Summary

Revenue (INR Crs) Net Profit (INR Crs) Total Assets (INR Crs)
42,147 45,908
2,40,893 1,44,166
2,25,458 1,41,892
38,327
1,91,754 32,430
1,64,177 1,35,458

1,25,056

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Return on Equity (%) Return on Assets (%) Financial Leverage

31.84% 1.1x
33.83% 29.70% 1.1x
31.22% 28.29%
28.96% 25.93%
25.24% 1.0x

1.0x

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Recent Updates
• TCS introduced WisdomNext™, an innovative Generative AI (GenAI) aggregation platform designed to streamline AI adoption for businesses. This
platform enables organizations to experiment with various GenAI models across different cloud services in a unified interface, accelerating the
deployment of AI solutions at scale.
• TCS reported strong financial performance for the first quarter of FY24. The company achieved a 16.8% year-over-year increase in net profit,
reaching ₹11,074 crore. Revenue for the quarter was ₹59,381 crore, marking a 12.6% increase from the previous year. This growth was driven by
robust performance in key markets like the UK and sectors such as life sciences, healthcare, and manufacturing.
• Effective from April 1, TCS implemented an annual salary hike and initiated promotions. Despite the 200 basis points impact on the operating
margin, the company remains focused on improving efficiencies to offset this effect. Additionally, TCS continues to honor all offers made and
plans to leverage the capacity built in the previous year .
• TCS was named one of the 50 most community-minded companies in the US and won a Gold Stevie® for its innovative marathon app highlighting
the history of Australia’s Indigenous people
 Dupont Analysis - Return on Equity & Return on Assets

Return on Equity (ROE)

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 25826.0 31472.0 32340.0 32430.0 38327.0 42147.0 45908.0
Average Shareholder Equity 128235.0 132010.0 128849.0 128496.0 132355.5 134993.5 135701.0
Return on Equity 20.14% 23.84% 25.10% 25.24% 28.96% 31.22% 33.83%

ROE - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 25826.0 31472.0 32340.0 32430.0 38327.0 42147.0 45908.0
Revenue 123104.0 146463.0 156949.0 164177.0 191754.0 225458.0 240893.0
Net Profit Margin (A) 20.98% 21.49% 20.61% 19.75% 19.99% 18.69% 19.06%

Revenue 123104.0 146463.0 156949.0 164177.0 191754.0 225458.0 240893.0

Average Total Asstes 103729.5 109513.5 117010.5 125056.0 135458.0 141891.5 144165.5
Asset Turnover Ratio (B) 1.2x 1.3x 1.3x 1.3x 1.4x 1.6x 1.7x

Average Total Asstes 103729.5 109513.5 117010.5 125056 135458 141891.5 144165.5
Average Shareholder Equity 128235 132010 128849 128496 132355.5 134993.5 135701
Equity Multiplier (C) 0.8x 0.8x 0.9x 1.0x 1.0x 1.1x 1.1x

Return on Equity (A*B*C) 20.14% 23.84% 25.10% 25.24% 28.96% 31.22% 33.83%

Return on Assets
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 25826.0 31472.0 32340.0 32430.0 38327.0 42147.0 45908.0
Average Total Asstes 103729.5 109513.5 117010.5 125056.0 135458.0 141891.5 144165.5
Return on Assets 24.90% 28.74% 27.64% 25.93% 28.29% 29.70% 31.84%

ROA - Dupont Equation

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Net Profit 25826.0 31472.0 32340.0 32430.0 38327.0 42147.0 45908.0
Revenue 123104.0 146463.0 156949.0 164177.0 191754.0 225458.0 240893.0
Net Profit Margin (A) 20.98% 21.49% 20.61% 19.75% 19.99% 18.69% 19.06%

Revenue 123104.0 146463.0 156949.0 164177.0 191754.0 225458.0 240893.0

Average Total Asstes 103729.5 109513.5 117010.5 125056.0 135458.0 141891.5 144165.5
Asset Turnover Ratio (B) 1.2x 1.3x 1.3x 1.3x 1.4x 1.6x 1.7x

Return on Assets (A*B) 24.90% 28.74% 27.64% 25.93% 28.29% 29.70% 31.84%

Dupont Summary
• The Net Profit has consistently increased from 25,826.0 in March 2018 to 45,908.0 in March 2024.
• Although it fluctuated slightly, it showed a general upward trend, increasing from 128,235.0 in March 2018 to
135,701.0 in March 2024.
• The ROE has steadily increased from 20.14% in March 2018 to 33.83% in March 2024, indicating improving
profitability relative to the shareholders' equity.
• Showed an increasing trend, growing from 103,729.5 in March 2018 to 144,165.5 in March 2024.
• The ROA showed fluctuations but generally increased from 24.90% in March 2018 to 31.84% in March 2024,
indicating improved efficiency in using assets to generate profit.
• The ROA increased significantly from 24.90% to 28.74%.
• The ROA experienced slight fluctuations, dropping to 27.64% in 2020 and 25.93% in 2021.
• The ROA improved steadily, reaching 31.84% in 2024.
Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only.
The author of the report is not liable for any losses due to actions taken basis this report. It is advisable to
consult SEBI registered reasearch analyst before making any investments
 TATA CONSULTANCY SERVICES LTD
(TCS | BSE Code: 532540
INR 3928.2
52 Week (High - INR 4254.75& Low-INR 3193.40)

Altman's Z Score Analysis

The Altman Z-Score is a financial model created by Edward Altman in 1968 to predict the probability of a company going bankrupt. It uses five financial ratios that combine liquidity,
profitability, leverage, solvency, and activity to give a single score. These ratios are: working capital to total assets, retained earnings to total assets, EBIT to total assets, market value
of equity to total liabilities, and sales to total assets. The Z-Score is calculated with the formula: Z= 1.2X1+1.4X2+3.3X3+0.6X4+1.0X5. A score above 2.99 indicates a safe zone with a
low risk of bankruptcy, a score between 1.81 and 2.99 places the company in the grey zone with a moderate risk, and a score below 1.81 signals a distress zone with a high risk of
bankruptcy. This model is particularly useful for investors and creditors to assess the financial health of manufacturing companies

Financial Summary

Working Capital (INR Crs) Total Assets (INR Crs) Total Assets (INR Crs)
1,45,472 1,45,472
45,580 1,42,859 1,42,859
43,969 1,40,924 1,40,924
42,908

39,200 1,29,992 1,29,992

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

EBIT (INR Crs) Market Cap (INR Crs) Long term Liabilities (INR Crs)
1402479.3 8021.0
59311.0 1368466.9
54237.0
48453.0
42481.0
7795.0 7818.0

1175503.0 1173055.3
7688.0

2021 2022 2023 2024 2021 2022 2023 2024 2021 2022 2023 2024

Recent Updates
• TCS will continue to expand its offerings in digital transformation, leveraging technologies like artificial intelligence (AI), machine learning (ML), blockchain, cloud computing,
and the Internet of Things (IoT).
• Establishing more innovation labs and centers of excellence globally to foster cutting-edge technology solutions.
• Focus on sustainable and environmentally friendly IT practices, reducing carbon footprint, and promoting energy-efficient technologies.
• Continued investment in education, healthcare, and community development projects, contributing to social welfare and inclusive growth.
• Emphasis on upskilling and reskilling employees to keep pace with the rapid advancements in technology.
• Promoting diversity and inclusion in the workplace to harness a wide range of perspectives and ideas.
• Expanding presence in emerging markets, particularly in regions like Africa, Latin America, and Southeast Asia.
• Increasing investment in research and development to stay ahead of technological trends and drive innovation.
• Contributing to the development of smart cities with integrated solutions for urban planning, transportation, and utilities.
 Altman's Z Score Analysis Calculation

Working Capital / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Working Capital 36116.0 46925.0 44110.0 42908.0 43969.0 39200.0 45580.0
Total Assets 105126.0 113901.0 120120.0 129992.0 140924.0 142859.0 145472.0
Working Capital / Total Assets (A) 34.35% 41.20% 36.72% 33.01% 31.20% 27.44% 31.33%

Retained Earnings / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Retained Earnings 20789.2 25073.7 22439.5 27497.0 30383.8 0.0 34028.3
Total Assets 105126.0 113901.0 120120.0 129992.0 140924.0 142859.0 145472.0
Retained Earning / Total Assets (B) 19.78% 22.01% 18.68% 21.15% 21.56% 0.00% 23.39%

EBIT / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
EBIT 30502.0 37450.0 38580.0 42481.0 48453.0 54237.0 59311.0
Total Asstes 105126.0 113901.0 120120.0 129992.0 140924.0 142859.0 145472.0
EBIT / Total Assets (C) 29.01% 32.88% 32.12% 32.68% 34.38% 37.97% 40.77%

Market Cap / Long term Liabilites

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Market Cap 272705.6 751096.1 685223.0 1175503.0 1368466.9 1173055.3 1402479.3
Long term Liabilites 247.0 62.0 8174.0 7795.0 7818.0 7688.0 8021.0
Market Cap / Long Term Liabilites (D) 110407.12% 1211445.30% 8382.96% 15080.22% 17504.05% 15258.26% 17485.09%

Sales / Total Assets

Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Total Sales 123104.0 146463.0 156949.0 164177.0 191754.0 225458.0 240893.0
Total Assets 105126.0 113901.0 120120.0 129992.0 140924.0 142859.0 145472.0
Sales /Total Assets (E) 117.10% 128.59% 130.66% 126.30% 136.07% 157.82% 165.59%

Altman's Z Score
Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24
Final Score 665.26 7271.85 53.37 93.51 108.20 94.71 108.62
Finacial Stability Strong Strong Strong Strong Strong Strong Strong

Disclaimer : This report is made as part of educational assignment and is meant for educational purpose only. The author of the report is not
liable for any losses due to actions taken basis this report. It is advisable to consult SEBI registered reasearch analyst before making any
investments