TCS
TCS
TCS (TCS) Stock Analysis & Case Study
Is TCS a good buy? The data-driven verdict.
TCS (TCS) trades at ₹2,128,on the numbers it screens attractive, a Downstox Snapshot Score of 80/100.
On the numbers, TCS (TCS) screens attractive, a Downstox Snapshot Score of 80/100, weighing inexpensive at 14.7× earnings, ROE of 51.8%. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 2027–2031.
Last updated . Data snapshot for research, not investment advice.
The Downstox take on TCS
The puzzle with TCS is why the market's biggest IT services franchise, earning a 51.8% return on equity and 63% on capital, trades at a P/E of just 14.7 with a 3% dividend yield. That pairing usually means investors doubt growth more than they doubt quality. The economics scream cash machine; the multiple whispers that the demand cycle is the real worry. The middling Piotroski score of 4 is worth a closer look here, since it sits oddly against such clean profitability. Watch whether earnings reaccelerate or the dividend keeps doing the heavy lifting.
Downstox editorial view, written by our own analysts. Information, not investment advice.
TCS fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield
Is TCS overvalued? TCS P/E vs its IT
TCS's P/E of 14.7× sits below the IT peer median of 16.2×, so on earnings it screens in line with peers, while its 3.01% dividend yield is below the peer median of 4.03%.
The bull case for TCS
- Trades at just 14.7× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection.
- High return on equity (51.8%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise.
- Strong ROCE (63.0%) shows the core business earns well above its cost of capital.
- Pays a 3.0% dividend yield, so you're partly paid to wait.
The bear case & risks
- No model or past record guarantees future returns, treat this as one input, not a decision.
TCS Piotroski F-Score: 4/9, how financially strong is it?
The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. TCS scores 4/9,mixed financial health.
TCS MTF margin & leverage, Upstox, Zerodha, Groww, Dhan
Margin Trading Facility lets you buy TCS with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):
| Broker | Margin required | Approx. leverage |
|---|---|---|
| Upstox | 27.8% | 3.6× |
| Zerodha | 23.7% | 4.2× |
| Groww | 23.7% | 4.2× |
| DhanCHEAPEST | 22.0% | 4.5× |
Compare every broker on the TCS MTF page.
TCS vs peers,IT comparison
| Stock | P/E | Div yield | Market cap |
|---|---|---|---|
| TCS (this stock) | 14.7× | 3.01% | ₹7.69L Cr |
| INFY | 14.4× | 4.51% | ₹4.32L Cr |
| HCLTECH | 17.7× | 4.78% | ₹3.07L Cr |
| WIPRO | 14.4× | 6.11% | ₹1.89L Cr |
| TECHM | 28.1× | 3.55% | ₹1.41L Cr |
| PERSISTENT | 39.7× | 0.72% | ₹76,699 Cr |
About TCS: sector, index & market-cap context
TCS (TCS) is a large-cap NSE-listed company in the IT sector, and a constituent of the Nifty 50 index group, with a market capitalisation of ₹7.69L Cr. See more Nifty 50 stocks.
How the TCS Snapshot Score & forecast are built
The Downstox Snapshot Score is a transparent, rules-based read of TCS's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.
This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.
TCS analysis, FAQs
Is TCS (TCS) a good buy?
On the numbers, TCS (TCS) screens attractive, a Downstox Snapshot Score of 80/100, weighing inexpensive at 14.7× earnings, ROE of 51.8%. This is a data snapshot for research, not investment advice.
Is TCS overvalued or undervalued?
TCS trades at 14.7× earnings versus a peer median of 16.2×, so it screens cheaper than its IT peers.
What is the bull case for TCS?
Trades at just 14.7× earnings, below the ~22× long-run Nifty average, so the valuation leaves room rather than pricing in perfection. High return on equity (51.8%), the business compounds shareholder capital efficiently, the hallmark of a quality franchise. Strong ROCE (63.0%) shows the core business earns well above its cost of capital.
What are the risks in TCS?
No model or past record guarantees future returns, treat this as one input, not a decision.