Tata Consultancy Services Limited(TCS.

NS)
SUMMARY:
Previous
3,177.30
Close
Open 3,185.00
3,143.50 -
Day's Range
3,197.00
52 Week 2,953.00 -
Range 4,043.00
Volume 2,074,826
Avg. Volume 2,517,597
Market Cap 11.603T
Beta (5Y
0.69
Monthly)
PE Ratio
30.15
(TTM)
EPS (TTM) 105.17
Earnings
Oct 10, 2022
Date
Forward
44.00
Dividend &
(1.43%)
Yield
Ex-Dividend
Jul 14, 2022
Date
1y Target Est 3,566.17

FUNDAMENTAL INDICATORS
1. P/E RATIO:
The price-earnings ratio, also known as P/E ratio, P/E, or PER, is the ratio of a
company's share price to the company's earnings per share. 
The P/E ratio of TCS is 30.15.
In general low per stock are better to invest as compared to high per stock.

The P/E ratio itself doesn’t tell a lot; however, it becomes very insightful when you
compare it with other similar companies. We want to compare the stock’s P/E ratio to
 the average of companies that have similar characteristics as TCS, such as size and
country of operation. A common peer group is companies that exist in the same
industry, which is what I use. At 30.15x, TCS’s P/E is higher than its industry peers
(27.12x). This implies that investors are overvaluing each rupee of TCS’s earnings.
Therefore, according to this analysis, TCS is an over-priced stock.

Before jumping to the conclusion that TCS should be banished from one’s portfolio,
it is important to realise that our conclusion rests on two assertions. Firstly, our peer
group contains companies that are similar to TCS. If this isn’t the case, the difference
in P/E could be due to other factors. For example, if one compared lower-risk firms
with TCS, then investors would naturally value it at a lower price since it is a riskier
investment. The second assumption that must hold true is that the stocks we are
comparing TCS to are fairly valued by the market. If this does not hold true, TCS’s
lower P/E ratio may be because firms in our peer group are overvalued by the market.

 The PE ratio is very one-dimensional indicator.

2. P/S ratio:
Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is calculated by
dividing the company's market capitalization by the revenue in the most recent year;
or, equivalently, divide the per-share stock price by the per-share revenue.
The PSR is 5.55.
The lower the PSR the better is to invest in company.The ratio should be compared in
the same industry as sales vary from industry to industry and we are interested in our
earning from stock so there can be a situation where sales is less but profit is more as
profit per good varies in every industry.
Low PSR not always means you are going to earn profit as it does not tell us about
management of the company maybe expenses are more than revenue and company
endup being a loss making company.
The competitors of TCS have PSR like(4.64,2.73).So PSR of TCS is higher than its
competitors but we can not conclude that its time for TCS to leave the portfolio as
mentioned above several factors.
Moreover, PSR is a weaker indicator as compared to PER.

TECHNICAL INDICATORS

1. NEGATIVE DIRECTIONAL INDICATOR:

The Negative Directional Indicator (-DI) measures the presence of a downtrend and is
part of the Average Directional index (ADX). If -DI is sloping upward, it's a sign that the
price downtrend is getting stronger.

This indicator is nearly always plotted along with the (+DI).

 IMPORTANT:

 -DI is part of a more comprehensive indicator called the Average Directional Index
(ADX). The ADX reveals trend direction and trend strength.
 The indicator was designed by Welles Wilder for commodities, it is used for other
markets and on all timeframes.
 When the Negative Directional Indicator (-DI) moves up, and is above the Positive
Directional Indicator (+DI), then the price downtrend is getting stronger.
 When -DI is moving down, and below the +DI, then the price uptrend is
strengthening.
 When +DI and -DI crossover, it indicates the possibility of a new trend. If -DI
crosses above the +DI then a new downtrend could be starting.

(I have plotted the graph as well to observe the above rules.)

2.WADDAH ATTAR EXPLOSION(LAZYBEAR)

 This indicator uses MACD /BB to track trend direction and strength.

Various components of the indicator are:

Dead Zone Line: Works as a filter for weak signals. Do not trade when the red or green
histogram is below it.

Histograms:
- Red histogram shows the current down trend.
- Green histogram shows the current up trend.
- Sienna line shows the explosion in price up or down.

Signal for ENTER_BUY: All the following conditions must be met.

- Green histo is raising.
- Green histo above Explosion line.
- Explosion line raising.
- Both green histo and Explosion line above DeadZone line.

Signal for EXIT_BUY: Exit when green histo crosses below Explosion line.

Signal for ENTER_SELL: All the following conditions must be met.

- Red histo is raising.
- Red histo above Explosion line.
- Explosion line raising.
- Both red histo and Explosion line above DeadZone line.

Signal for EXIT_SELL: Exit when red histo crosses below Explosion line

NOTE:

WHILE MY CALCULATION IN PYTHON I HAVE CALCULATED MACD AND BOLLINGER BANDS

BUT THERE WAS A GLITCH COMING IN GOOGLE COLAB WHILE CALCULATING EXPLOSION
LINE PARAMETER IT WAS GIVING ‘numpy.float64' object has no attribute
'rolling'.

Please See as I was not able to plot this indicator completely while Bollinger Bands and
MACD I have done completely which were part of this indicator.