INTRODUCTION

Tata Consultancy Services (TCS) is an Indian multinational information

technology (IT) services and consulting company headquartered
in Mumbai, Maharashtra, India with its largest campus located
in Chennai, Tamil Nadu, India.

As of February 2021, TCS is the largest IT services

company in the world by market capitalization It is a subsidiary of the Tata
Group and operates in 149 locations across 46 countries.

TCS is the second

largest Indian company by market capitalisation and is among the most
valuable IT services brands worldwide. In 2015, TCS was ranked 64th overall
in the Forbes World's Most Innovative Companies ranking, making it both
the highest-ranked IT services company and the top Indian company. 

As of
2018, it is ranked eleventh on the Fortune India 500 list. In April 2018, TCS
became the first Indian IT company to reach $100 billion in market
capitalization and second Indian company even achieved it in after its
market capitalization stood at 6.793 trillion on the Bombay Stock Exchange.
MILESTONE

The year 2021 is slowly becoming the year of Tata Consultancy Services (TCS)
with good news coming their way one after another. Another good news for
the company is that the company has become the first Indian IT company
that crossed the market cap of $200 billion with a rise of 35%.
On September 15,
TCS announced market capitalisation as it hit the stock market. The new
lifetime high of 1.8% at Rs 3,955 was closed.
Reliance Industries Ltd hit the
market cap of $215 billion earlier this month on a domestic rating. It is the
first company to cross the highest market cap.
Earlier, TCS became the first
company with a headcount of more than 5 lakh employees. Apart from this,
TCS is also the favourite company for tech employees with a minimum
attrition rate.
Chief Executive Officer & Managing Director

Rajesh Gopinathan is the Chief Executive Officer and Managing Director of

TCS , a leading global IT solutions and consulting firm. He was elevated to
the role of Chief Executive in February 2017 after serving as the Chief
Financial Officer since 2013.

Prior to his role as Chief Financial Officer, Rajesh

was the Vice President - Business Finance. In this role, he was responsible for
the financial management of the company’s individual operating units.
Rajesh joined Tata Consultancy Services in 2001 from the Tata Industries,
and worked to drive TCS’ newly established e-business unit in the United
States.

Rajesh was awarded the 2019 Management Man Achiever of the year by

Bombay Management Association.  He was also named one of Top 100
Global CEOs in the Brand Guardianship Index 2019. Recently he was
honored with CEO Force for Good Award by the Chief Executives for
Corporate Purpose (CECP) at its annual Board of Boards event in New York,
for the global scale and impact of its employee volunteerism, community
engagement, STEM education, and digital re-skilling programs.
ORGANIZTIONAL STRUCTURE
TCS Income Statement Analysis
 Operating income during the year rose 7.2% on a year-on-
year (YoY) basis.
 The company's operating profit increased by 6.6% YoY
during the fiscal. Operating profit margins witnessed a fall and stood
at 26.8% in FY20 as against 27.0% in FY19.
 Depreciation charges increased by 71.6% and finance costs
increased by 366.7% YoY, respectively.
 Other income grew by 6.5% YoY.
 Net profit for the year grew by 2.8% YoY.
 Net profit margins during the year declined from 20.9% in
FY19 to 20.1% in Fy
TCS Balance Sheet Analysis
 The company's current liabilities
during FY20 stood at Rs 271 billion as compared to Rs 221 billion in
FY19, thereby witnessing an increase of 22.5%.
 Current assets fell 2% and stood at Rs
902 billion, while fixed assets rose 63% and stood at Rs 216 billion in
FY20.
 Overall, the total assets and liabilities
for FY20 stood at Rs 1,209 billion as against Rs 1,149 billion during
FY19, thereby witnessing a growth of the company
RATIO ANALYSIS
Profitability ratios
Operating margin (%)
Gross profit margin (%)
Net profit margin (%)
Adjusted cash margin (%)
Adjusted return on net worth (%)
Reported return on net worth (%)
Return on long term funds (%)
29.64 28.44 28.38 28.56 29.22
27.40 26.39 26.99 26.86 27.52
22.77 25.33 24.40 25.92 25.51
24.92 25.79 24.29 26.06 25.93
43.02 44.72 38.10 33.27 30.31
41.39 44.72 38.10 33.27 30.31
57.03 57.46 51.80 42.10 38.53
Leverage ratios
Long term debt / Equity - - - - -
Total debt/equity - - - - -
Owners fund as % of total source 100.00 100.00 100.00 99.71 99.68
Fixed assets turnover ratio 1.82 1.71 1.59 1.26 1.29

Liquidity ratios
Current ratio 1.78 1.97 2.84 2.88 3.14
Current ratio (inc. st loans) 1.78 1.97 2.84 2.85 3.09
Quick ratio 1.69 1.89 2.74 2.67 2.93
Inventory turnover ratio 1.82 1.77 1.56 3,894.24 4,413.95

INTRISINIC VALUE

As of today (2021-11-18), Tata Consultancy Services's intrinsic value

calculated from the Discounted Cash Flow model is ₹4,010.90.

MARKET VALUE

3,471.95 INR−49.95 (1.42%) today

Therefore the intrinsic value is more than the market value of TCS