Tata group’s cash cow and one of the largest Indian company, Tata Consultancy Services (TCS), has shown steady rise in the span of last 10 years, barring several bumps following the slump in Sensex and Nifty.
The stock was trailing the benchmark indices in 2017. However, the stock began gaining traction this year with over 12 percent return in the last one month. The company ended fiscal 2018 on a positive note, beating street estimates in the March quarter and soaring to its all-time high. Read on to find out what lies ahead for the company.
Company Overview:
TCS, a subsidiary of the Tata Group, is India’s largest IT service provider. The company has over 394,000 consultants spread across 46 countries. The company generates revenue from various verticals such as banking, financial services & insurance (BFSI); manufacturing segment; retail and consumer business; communication, media and technology (CMT) and others. BFSI dominated TCS revenue with around 39 percent in FY18. Other verticals such as retail and CMT contributed around 17 percent each to the total revenue of the company.
TCS has successfully sailed through various technological transformations during the last five decades of its existence. TCS is firmly placed above the big IT services providers in India such as Infosys, Wipro, HCL Technologies and Tech Mahindra not only in terms of revenues but also by market capitalisation. TCS is the largest company by market capitalisation in the country with a market cap of over ₹6 lakh crore. It is also placed among the most valuable IT services brand in the world. Its brand value has grown 14 percent from $9 billion in 2017, placing it among the top three IT services companies globally. The brand value of IBM and Accenture stood at $20 billion and $17 billion, respectively. When it comes to revenue generation, TCS alone generates around 70 percent of total funds for its parent company.
IT sector outlook:
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
