Tata Consultancy Services Ltd.
IT · NSE
52-week range
₹2,346 – ₹3,509
From 52w high
-31.8%
RSI (14)
38.6
vs SMA 50 / 200
↓ 50 · ↓ 200
TCS trades at ₹2,394.40, down 28.41% over 12 months and 31.77% below its 52-week high, with the price sitting 17.6% below the 200-DMA at the time of analysis. Against this technical backdrop, the company reports an ROE of 48.4% — highest among its 6 tracked IT peers — and a 5.18% dividend yield, though the dividend has been cut for a second consecutive year. An active governance investigation at the Nashik facility adds a reputational risk dimension not visible in the trailing financial metrics.
- ✓ROE of 48.4% ranks 1st among 6 tracked IT sector peers (HCLTECH 23.36%, INFY 31.44%, TECHM 16.61%, WIPRO 15.49%, LTM 21.29%), and has been above 15% in 4 of the available historical years.
- ✓FCF has been positive in 4 of the available recorded years, with a consistency score of 59, indicating above-average earnings-to-cash conversion relative to the historical record.
- ✓Trailing dividend yield of 5.18% is notable for a large-cap IT name; forward PE of 14.47 compresses the valuation multiple further when projected earnings are used.
- ✓5-year earnings CAGR of 12.2% and revenue CAGR of 9.6% reflect sustained top- and bottom-line growth over a multi-year horizon despite current near-term headwinds.
- ✗Price is 31.77% below the 52-week high and 17.6% below the 200-DMA (₹2,901.17), with losses of 28.41% over 12 months and 20.16% over 3 months — among the steepest drawdowns in the measured IT peer group.
- ✗Active governance risk: Nashik facility allegations led to an internal probe ordered by the Chairman and 7 SIT arrests as of April 2026, representing an ongoing legal and reputational exposure.
- ✗Dividend has been reduced for two consecutive years, with cash being redirected to AI infrastructure investment; payouts to parent Tata Sons have also declined, signalling a shift in capital allocation priorities.
- ✗Debt-to-equity of 10.39 is on a rising trend; while IT firms are not capital-intensive in the traditional sense, this trajectory alongside declining dividend capacity constrains financial flexibility.
- ·TCS Chairman Chandrasekaran ordered an internal probe into Nashik facility allegations after SIT arrested 7 individuals in April 2026 — the outcome and scope of this investigation remain open.
- ·The company has cut its dividend for a second consecutive year, directing capital toward an AI infrastructure push; Mint reported that payouts to Tata Sons fell as acquisitions and AI investment weighed on free cash flows.
- ·Mean analyst rating of 2.11 across 43 analysts (1–5 scale, lower = more constructive) — one of the most widely covered IT names on NSE; Motilal Oswal separately cited a price target of ₹3,000 in an April 2026 note (Investment Guru).
- ?Does the divergence between TCS's sector-leading ROE (48.4%) and its 28% price decline over 12 months reflect a temporary re-rating driven by macro IT demand concerns, or does it indicate a more durable shift in the market's assessment of the business?
- ?How material is the Nashik facility investigation to TCS's broader client relationships and regulatory standing, and what precedent do prior governance incidents in Indian IT set for resolution timelines and financial impact?
- ?With the dividend cut for two consecutive years and D/E rising to 10.39, how is the AI infrastructure spend expected to affect the medium-term free cash flow profile, and at what point might dividend capacity be restored?
- ?Given that 5 of 5 peer priceChange1Y figures are unavailable, how does TCS's 28.41% 12-month decline compare to the broader NSE IT sector index, and is the underperformance stock-specific or sector-wide?
PE
17.6
Forward PE
14.5
ROE
+48.4%
Profit margin
+18.4%
D/E
10.39
Dividend yield
+5.2%
Quality score
59/100
ROE 5y above 15%
4/5 yrs
FCF 5y positive
4/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.