Financial

Management & Policy

FINANCIAL
COMPARISON
Group4
Pawan Kumar Gola (2k21/DMBA/082)
Reshal Tripathi(2k21/DMBA/096)
Rishabh Srivastav(2k21/DMBA/099)
Rohan sharma(2k21/DMBA/102)
Ruchika Mehta(2k21/DMBA/104)
Shruti Raj(2k21/DMBA/119)
CONTENT
INTRODUCTION

RISK ANALYSIS

COST OF CAPITAL

CASH FLOW

RETURN ON STOCK

DIVIDEND/EARNINGS PAYOUT
 INTRODUCTION
India is the world's largest sourcing destination with largest qualified talent pool of technical
graduates in the world. According to National Association of Software and Service Companies
(Nasscom), the Indian IT industry’s revenue is estimated to reach US$ 194 billion in FY21, an
increase of 2.3% YoY. The sector is the largest employer within the private sector.with global
investments estimated to exceed ~US$ 200 billion annually by 2025. India is expected to gain a
significant share in the global market, with the country's investment expected to hit ~US$ 5 billion
annually by 2025.
TCS-Tata Consultancy Services has a market cap of $169.11 Billion.It is second most valuable
domestic company after Reliance Industries. It operates mainly in IT, ITES and BPO sectors.
WIPRO-With market cap of $38.54 Billion,It falls under Top 5 IT companies in
India and is the 3rd largest R&D service provider in the world and also among the Top 3 Indian
BPO services.The IT services segment offers IT & IT enabled services including customer centric
design, cognitive computing & technology consulting etc.
L&T Infotech-With market cap of $11.04b IT,analytics, mobility, cloud, IoT and Augmented
Reality (AR) that are key operating sectors of the company.
Redignton-With market cap of $1.67b, žIt is the single distributor to provide significant arm and
positioning of national service providers in IT and Mobile products and it provides supply chain
solutions for IT products
Oracle Financial Services- With a market cap of $204.54 billion It operates through three
segments: Product Licenses and Related Activities, IT Solutions and Consulting Services, and
Business Process Outsourcing Services
HCL-With market cap of $39.9b , the major sectors in which company operates are IT, Aerospace
and defense, automotive, banking, capital markets
Risk Analysis
Oracle Financial Services Software Ltd- Company has a
dividend risk

HCL- Company has an Unstable dividend track record

Redington- Company has an Unstable dividend track record

Tata Consultancy Services- currently company has no risk.

L&T technology services ltd- Unstable dividend track record

and Significant insider selling over the past 3 months

Wipro- currently company has no risk.

 Cost of Capital
01 WIPRO 03 ORACLE 05 HCL
WACC 11.52% WACC 12.25%
WACC 11.02%
ROIC 20.35%
ROIC 55.94% ROIC 16.46%

02 L&T REDDINGTO
06 TCS
INFOTECH 04 N

WACC 12.46% WACC 11.64% WACC 7.3%

ROIC 30.07% ROIC 40.73% ROIC 47.67%

Dividend Yield
Company Dividend Yield

ORACLE 5.73%

HCL 2.88%

REDINGTON 2.32%

TCS 1.19%

L&T TECHNOLOGY
0.61%
SERVICES

WIPRO 0.19%
Forecast of growth in 3 Years
Company Growth

ORACLE 6.60%

HCL 4.10%

REDINGTON 3.30%

TCS 2.60%

WIPRO 1.80%

L&T TECHNOLOGY
1.10%
SERVICES
 Earing Payout to Shareholders

27% 92% 24% 63%

41% 5%

Redington HCL
Oracle Financial
TCS L&T Technology With its
WIPRO Services Software With its low
With its reasonably Services reasonable
its low payout ratio With its high payout payout ratio
low payout ratio With its reasonably low payout ratio
(4.5%), 507685's ratio (92.2%), (24.1%),
(41.5%), TCS's payout ratio (27.5%), (63.3%),
dividend payments are 532466's dividend REDINGTON's
dividend payments LTTS's dividend HCLTECH's
thoroughly covered by payments are not dividend
are well covered by payments are well dividend
earnings. well covered by payments are well
earnings. covered by earnings. payments are
earnings. covered by
earnings. covered by
earnings.
 Cashflow
Wipro 20%
9783.4 CR

HCL 26.75% Redington 1.15%

2876 CR 303.45

Oracle Financial Services TCS 23.81%

44.97% 1,112 CR
1380 CR

L&t infotech 15.69%

401.40 CR

RETURN ON STOCKS
THANKYOU