When considering a long-term investment, Tata Consultancy Services (TCS) is often top of mind for many investors due to its consistent performance and robust market presence. In this blog, we will delve into the TCS share price targets for the years 2024, 2025, 2027, 2030, and 2040. This detailed analysis will provide insights into TCS’s financial growth, business strategies, and market trends, helping you make informed decisions.
What is Tata Consultancy Services (TCS) Limited?
Tata Consultancy Services Limited (TCS) is a leading Indian multinational IT services and consultancy company. Established in 1968, TCS has grown to become one of the largest companies in India by market capitalization. The company’s headquarters are located in Mumbai, and it operates in over 46 countries worldwide.
Company Name: Tata Consultancy Services Limited
P/B Ratio: 19.96
52 Week High: ₹4,352.96
52 Week Low: ₹3,250
Book Value: ₹198.39
Face Value: ₹1
Dividend Yield: 1.89%
TCS’s Financial Data Analysis A thorough analysis of TCS’s financial data reveals the company’s strong position in the market. The key financial ratios that reflect its performance are:
Financial Metric | Value |
PE Ratio | 32.85 |
Return On Assets (ROA) | 36.96% |
Current Ratio | 2.30 |
Return On Equity (ROE) | 59.99% |
TCS’s Historical Performance TCS has consistently shown a bullish trend in the stock market. The share price has exhibited steady growth over the years, making it a reliable investment for the long term. Below is a summary of TCS’s share price growth over various time frames:
Time Period | Growth |
Last 6 Months | +113.35 (2.99%) |
Last 1 Year | +604.50 (18.31%) |
Last 5 Years | +1,679.55 (75.41%) |
Maximum Growth | +3,786.42 (3,146.70%) |
TCS Share Price Target 2024
TCS’s growth in recent years, along with its robust business strategies, suggests a positive outlook for the future. The company has expanded its operations significantly, particularly in sectors like IT services for the Indian Railways and SMEs with cloud-based solutions.
Year | TCS Share Price Target 2024 |
1st Target | ₹3,856.45 |
2nd Target | ₹4,196.74 |
Financial Projections for 2024 Profit Growth: 8.1% over the last five years Promoter Holding: 71-72%
TCS Share Price Target 2025
In 2025, TCS is expected to continue its upward trajectory, fueled by its diversified portfolio of products and services. The company offers a range of software solutions and IT services across various industries, which should contribute to its growth.
Year | TCS Share Price Target 2025 |
1st Target | ₹4,278.46 |
2nd Target | ₹4,423.52 |
Financial Projections for 2025 Sales Growth: 6.96% in the last year Net Profit: ₹10,325.12 Crore
TCS Share Price Target 2027
As TCS continues to innovate and form strategic partnerships, its share price is expected to rise further by 2027. The company’s focus on digital engineering and customized industry solutions positions it well for future growth.
Year | TCS Share Price Target 2027 |
1st Target | ₹4,841.52 |
2nd Target | ₹5,145.23 |
Financial Projections for 2027 Return on Equity (ROE): 59.8% Return on Capital Employed (ROCE): 72.63%
TCS Share Price Target 2030
By 2030, TCS is expected to further solidify its position as a market leader. The company’s innovative solutions, particularly in retail and energy sectors, will likely drive its growth over the next decade.
Year | TCS Share Price Target 2030 |
1st Target | ₹5,845.85 |
2nd Target | ₹6,248.96 |
Financial Projections for 2030 Net Sales Growth: 11.52% over the last year Net Profit: ₹20,325.12 Crore
TCS Share Price Target 2040
Looking even further ahead to 2040, TCS is expected to maintain its growth momentum, driven by continuous innovation and expansion into new markets. The company’s extensive experience and robust infrastructure will likely keep it at the forefront of the IT industry.
Year | TCS Share Price Target 2040 |
1st Target | ₹10,748.85 |
2nd Target | ₹11,253.41 |
Financial Projections for 2040 Net Sales Growth: 15.52% over the last year Net Profit: ₹50,325.12 Crore
How to Purchase TCS Share?
Investing in TCS shares is straightforward and can be done through various trading platforms. Below are some of the most popular platforms where you can purchase TCS shares:
- Zerodha
- Upstox
- Groww
- Angel One
Investor Types and Ratios
TCS’s growth is supported by a diverse group of investors, including promoters, public investors, foreign institutional investors (FII), and domestic institutional investors (DII). Here’s a breakdown of the investor types and their respective holding ratios:
Investor Type: Promoters Holding (71.50%), Public Holding (4.90%), FII (12.80%), DII (10.80%)
Advantages and Disadvantages of TCS Share
Before making an investment decision, it’s essential to weigh the pros and cons.
- Debt-Free Status: TCS is virtually debt-free, reducing financial risk.
- High ROE: The company has a strong ROE of 54.23% over the last three years.
- Increased Book Value: The book value per share has been rising, reflecting financial stability.
- Effective Cash Conversion: With a cash conversion ratio of 90.23%, TCS efficiently turns its earnings into cash.
- Strong ROCE: A ROCE of 72.63% over the last three years highlights the company’s efficient use of capital.
- Modest Sales Growth: The sales growth of 6.96% in the last year is lower than expected.
- Profit Growth: The company’s profit growth was 11.42% last year, which may concern some investors.
Also Read: NLC India Share Price Target 2024, 2025, 2027, 2030 and 2040
FAQs
Conclusion
Tata Consultancy Services (TCS) is a reliable and promising investment opportunity for both short-term and long-term investors. With a strong financial foundation, innovative business strategies, and consistent performance in the stock market, TCS is expected to continue its growth trajectory in the coming years.
Disclaimer: This blog is for educational purposes only and should not be considered as financial advice. Always consult with a SEBI-registered advisor before making any investment decisions.
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