Fundametal and Technical Analysis of IT Sector - Wipro and TCS Final

SUMMMER INTERNSHIP REPORT
ON
“FUNDAMENTAL AND TECHNICAL ANALYSIS OF IT
SECTOR IN INDIA – WIPRO AND TCS”
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF MANAGEMENT STUDIES (MMS)
(UNDER UNIVERSITY OF MUMBAI)
SUBMITTED BY:
“Sanika Kulkarni”
ROLL NO: 094
BATCH: 2022 - 24
UNDER THE GUIDANCE OF
Prof. Sandip Chopde
MET IOM
MET’s INSTITUTE OF MANAGEMENT
BHUJBAL KNOWLEDGE CITY,
BANDRA RECLAMATION, BANDRA, MUMBAI - 400 050
i
A PROJECT REPORT ON
FUNDAMENTAL AND TECHNICAL ANALYSIS OF IT

SECTOR IN INDIA – WIPRO AND TCS
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF MANAGEMENT STUDIES (MMS)
(UNDER UNIVERSITY OF MUMBAI)
SUBMITTED BY:
SANIKA KULKARNI
ROLL NO: 094
FINANCE
BATCH: 2022-24
MET’s INSTITUTE OF MANAGEMENT

BHUJBAL KNWOLEDGE CITY,
BANDRA RECLAMATION, BANDRA, MUMBAI - 400 050
ii
SUMMER INTERNSHIP REPORT
A PROJECT REPORT ON SUMMER INTERNSHIP AT
“FINTECH EDUCATION”
PROJECT TITLE:
FUNDAMENTAL AND TECHNICAL ANALYSIS OF IT SECTOR
IN INDIA – WIPRO AND TCS
BY
SANIKA PRASAD KULKARNI
ROLL NO: 094
FINANCE
BATCH: 2022-2024
iii
CERTIFICATE
This is to certify that Project titled Fundamental and technical analysis of IT sector
in India – Wipro and TCS is successfully completed by Sanika Prasad Kulkarni, in
partial fulfilment of the Master’s Degree of Management studies recognized by the
University of Mumbai for the academic year of 2022- 24. Bearing Roll No. 094.
This project work is original and was not submitted earlier for any award of any degree/
diploma or associated with any other institution /university.
Date: Name: Sanika Kulkarni

Place: Mumbai
Signature: Signature:
Company Guide Faculty Guide
Aniket Chandanshive Dr. Sandeep Chopde
iv
DECLARATION
I hereby declare that, this Project report submitted by me to the University of Mumbai is a
bonafide work undertaken by me and it is not submitted to any other University or Institution
for the award of any degree/ diploma/ certificate or published any time before.
Name: Sanika Prasad Kulkarni Signature of student
Date:
v
ACKNOWLEDGEMENT
I wish to offer my thanks to Fintech Education for giving me a chance to be a part of their
regarded association and upgrade my insights by conceding authorization to do summer
internship under their direction.
I truly say thanks to Mr. Aniket Chandanshive, Founder & CEO at Fintech Education who
was genuine wellspring of help and furthermore I accept this open door to thank my
colleagues.
I express my gratitude to my guide Dr. Sandeep Chopde Sir, Associate Professor (Finance)
for giving his timely inputs and suggestions throughout my summer internship which has
contributed immensely in the making of this report.
I likewise thank Dr. Swati Lodha, Director, Dr. Nitin Kulkarni, Course Coordinator for their
help. An exceptional on account of our Placement Department for their help and guidance
and providing me the opportunity to embark on this project.
I would like to thank every one of them with whom I collaborated. Their due participation
and inspiration made the finish of this internship effective.
Regards,
Sanika Kulkarni
Date:
Place: Mumbai
vi
CERTIFICATE FROM COMPANY
vii
TABLE OF CONTENT
SR. NO. CONTENTS PAGE NO.

I Title page i
II Title page 2 ii
III Certificate iii
IV Declaration iv
V Acknowledgement v
VI Certificate from company vi
VII Table of content vii
VIII List of tables viii
IX List of charts ix
1 Introduction 1
2 Need and justification of study 5
3 Objectives of the projects 6
4 Methodology 7
5 Data collection and analysis 8
6 Suggestions and recommendations 48
7 Conclusions 50
8 Bibliography 52
9 Annexure 53
viii
List of Tables

1.1 Table Showing Data of TCS 3
1.2 Table Showing Data of WIPRO 4
5.1 Table Showing Debt to Equity ratio 13
5.2 Table Showing Interest Coverage Ratio 14
5.3 Table Showing Earnings Per Share 15
5.4 Table Showing P/E Ratio 17
5.5 Table Showing Operating Profit Margin 18
5.6 Table Showing Net Profit Margin 19
5.7 Table Showing ROA 21
5.8 Table Showing ROE 22
5.9 Table Showing ROCE 23
5.10 Table Showing Current Ratio 25
5.11 Table Showing Dividend Payout Ratio 26
ix
List of Charts

5.1 Chart showing GDP rate of India 8
5.2 Chart showing Inflation rate in India 9
5.3 Chart showing Market size increase of IT industry 10
5.4 Chart showing sector wise break-up 11
5.5 Chart showing Debt to Equity Ratio 13
5.6 Chart showing Interest Coverage Ratio 14
5.7 Chart showing Earning Per Share Ratio 16
5.8 Chart showing P/E Ratio 17
5.9 Chart showing Operating Profit Margin 18
5.10 Chart showing Net Profit Margin 20
5.11 Chart showing Return on Assets 21
5.12 Chart showing Return on Equity 22
5.13 Chart showing Return on Capital Employed 24
5.14 Chart showing Current Ratio 25
5.15 Chart showing Dividend Payout Ratio 27
5.16 Chart showing Uptrend of Wipro Ltd. 30
5.17 Chart showing Uptrend of TCS Ltd. 30
5.18 Chart showing Bollinger Band of Wipro Ltd. 31
5.19 Chart showing Bollinger Band of TCS Ltd. 32
5.20 Chart showing ATR and Heikin-Ashi of Wipro Ltd. 33
5.21 Chart showing ATR and Heikin-Ashi of TCS Ltd. 34
5.22 Chart showing MACD of Wipro Ltd. 35
5.23 Chart showing MACD of TCS Ltd. 36
5.24 Chart showing Head and Shoulder pattern in TCS Ltd. 37
5.25 Chart showing Double Top pattern in TCS Ltd. 38
5.26 Chart showing Double Bottom pattern in Wipro Ltd. 38
5.27 Chart showing Cup and Handle pattern in Wipro Ltd. 39
5.28 Chart showing Flag and Pennant pattern in Wipro Ltd. 40
5.29 Chart showing Flag and Pennant pattern in TCS Ltd. 40
x
5.30 Chart showing Descending triangle pattern in Wipro Ltd. 41
5.31 Chart showing Ascending triangle pattern in TCS Ltd. 41
5.32 Chart showing Rectangle pattern in Wipro Ltd. 42
5.33 Chart showing Rectangle pattern in TCS Ltd. 42
5.34 Chart showing Rounding Bottom pattern in Wipro Ltd. 43
5.35 Chart showing Rounding Bottom pattern in TCS Ltd. 43
5.36 Chart showing Three White Soldiers pattern in Wipro Ltd. 44
5.37 Chart showing Three Black crows pattern in TCS Ltd. 45
5.38 Chart showing Support and Resistance Lines of Wipro Ltd. 46
5.39 Chart showing Support and Resistance Lines of TCS Ltd. 47
xi
Fundamental and technical analysis of IT sector in India – WIPRO and TCS
Chapter 1 - Introduction
For summer internship I had the opportunity to work with Fintech Education, Vasai. It is
an ecosystem where they train and develop skills of young generation in the field of stock
market and digital marketing. They offer their services to more than 110 B-schools across
India through free workshops and paid courses. They have more than 70 clients, some of
which are BPCL, D-Link, SBI life insurance.
During internship I gained some knowledge related technical analysis of stock market by
performing intraday activities in equity market. Therefore, the topic for my internship
project is related to analysis of stocks in IT sector of Nifty. For this report, I have selected
3 stocks or companies which are TCS and WIPRO.
The focus of the report is on fundamental and technical analysis.
Fundamental Analysis - The fundamental analysis examines the companies’ economic and
financial reports, including all qualitative and quantitative information, in order to
determine its value. While typically this method is used to evaluate the real value of traded
stocks, it can also be applied to any other kind of assets. More specifically, it comprises an
examination of the company’s financial reports (such as profit and loss accounts and
balance sheets) in order to analyse several financial indicators (such as, revenues, earnings,
liabilities, expenses and assets). The fundamental analysis is carried out with the aim of
predicting company’s future performance. It is based on the belief that the market price of
an asset tends to move towards its “real value” or its “intrinsic value”. Thus, if the intrinsic
value of an asset is higher than its market value, there may be a situation where it is time
to buy. Otherwise, investors should sell. While carrying out a fundamental analysis,
investors usually use either Top-down approach or Bottom-up approach.
Technical Analysis – According to CFA institute, “Technical analysis is a form of security

analysis that uses price data and volume data, typically displayed graphically in charts. The
charts are analysed using various indicators in order to make investment recommendations.
Technical analysis has three main principles and assumptions: (1) The market discounts
Sanika Kulkarni Page 1 of 71

everything, (2) prices move in trends and countertrends, and (3) price action is repetitive,
with certain patterns reoccurring.” It means technical analysis is an analysis methodology
for analysing and forecasting the direction of prices through the study of past market data,
primarily price and volume.
Information about the companies
TCS - (TATA CONSULTANCY SERVICES) LIMITED
Tata Consultancy Services (TCS) is a Mumbai-based multinational provider of information

technology (IT) services. It operates in 149 locations throughout 46 countries as a member
of the Tata Group. It was revealed that TCS has crossed 6 lakh workers worldwide.
According to market capitalization, TCS is the second-largest Indian corporation, and it is
one of the most globally renowned brands for IT services. In 2015, TCS was ranked 64th
overall in the Forbes "World's Most Innovative Companies" ranking, making it one of the
highest-ranked IT services companies and a top Indian company.
In 2016–2017, parent company Tata Sons owned 72.05% of TCS and more than 70% of
Tata Sons' dividends were generated by TCS. In March 2018, Tata Sons sold stocks of TCS
worth $1.25 billion in a bulk deal. As of 15 September 2021, TCS has recorded a market
capitalisation of US$200 billion, making it the first Indian IT firm to do so.

TABLE NO 1.1
TABLE SHOWING DATA OF TCS
Type Public
ISIN INE467B01029
Industry Information Technology
Consulting
Outsourcing
Founded 1968
Founders FC Kohli, J. R. D. Tata
Head quarters Mumbai, Maharashtra, India
Area served World wide
Number of employees 614,795 (March 2023)
Parent Tata Group
Subsidiaries TRDDC
Website www.tcs.com
Source – TCS Wikipedia
Wipro Limited

Wipro Limited (formerly, Western India Palm Refined Oils Limited) is an Indian
multinational corporation that provides information technology, consulting and business
process services. Thierry Delaporte has served as CEO and managing director of Wipro
from July 2020. It is headquartered in Bangalore, Karnataka, India. Wipro's capabilities
range across cloud computing, cyber security, digital transformation, artificial intelligence,
robotics, data analytics, and other technology consulting services to customers in 67
countries.
TABLE NO 1.2
TABLE SHOWING DATA OF WIPRO
Formally Western India Palm Redefined Oils

Limited
Type Public
ISIN INE07A01022
Industry Conglomerate
Founded 29th December 1945
Founders Muhammed Hasham Premji
Head quarters Sarjapur road, Bangalore, India
Area served World wide
Number of employees 240,000
Owner Azim Premji
Subsidiaries Appirio, Topcoder, Capco, Designit
Website www.wipro.com
Source – WIPRO Wikipedia

Chapter 2 - Need and justification of project
Need of the study
India's information technology (IT) industry is renowned for its outstanding performance
on the international market and has made a considerable economic contribution to the
nation. A thorough analysis of the major players is necessary to comprehend and assess the
dynamics of this industry. It is crucial in this situation to conduct research on Wipro and
TCS (Tata Consultancy Services), two of India's most well-known IT firms. The study is
important for economy, investment decisions, industry trends, risk management, policy
formulations, etc.
Scope of the study
The scope of this report includes a detailed examination of the fundamental and technical
aspects of the IT sector in India with a specific focus on Wipro and TCS. It covers following
areas
1. Company Profiles: Detailed profiles of Wipro and TCS, including their history,
structure, share prices, trends, etc
2. Financial analysis
3. Technical analysis
4. Market trends

Chapter 3 - Objectives of the project
1. To provide a thorough overview of the Indian IT sector, emphasising its present

state, growth trends and difficulties.
2. To assess Wipro's and TCS's fundamental financial performance, including their

revenue, profit margins, and important financial parameters, in order to
comprehend their financial well-being.
3. To do a technical analysis on Wipro and TCS stock prices, highlighting significant

price trends, levels of support and resistance, and potential trend reversals.
4. to assess how Wipro and TCS are positioned to benefit from upcoming
technologies by analysing technological advances and advancements inside India's
IT sector.
5. To present a comprehensive conclusion that synthesizes the key findings of the

report and provides an overall outlook for the Indian IT sector and the two specific
companies in question.

Chapter 4 - Methodology
Introduction
Research design or research methodology is the procedure of collecting, analysing and

interpreting the data to diagnose the problem. The sample data is collected from secondary
sources. The companies are chosen in an unbiased manner. The companies are chosen from
the IT sector which are TCS and Wipro
Research Design
The Research is descriptive in nature. Descriptive Research aims to accurately and

systematically describe a population, situation or phenomenon. A descriptive research
design can use a wide variety of research methods to investigate one or more variables.
Source of Data
Secondary data has been used in this study. Secondary data has been collected from various
sources to conduct fundamentals and technical analysis which includes BSE, NSE, IBEF,
articles, journals, research papers, companies’ annual reports, financial statements and
website etc.
Sample Size
For this study two IT companies are selected which are listed under Indian stock market.
Other data like balance sheet and profit and loss Account, etc. of last 5 years has been
considered for the study.

Chapter 5 - Data collection and data analysis

Fundamental analysis
Indian Economy analysis
The Indian economy is one of the most dynamic and quickly expanding in the world. Over
the past few decades, it has undergone substantial development, fuelled by a number of
causes such as a sizable and youthful population, economic reforms, and globalisation.
1. GDP trends from 2018 through 2022:
2018: India's GDP reached $2.72 trillion in 2018 and increased by 6.81%.
2019: The economy grew by 4.04%, reaching $2.87 trillion.
2020: The COVID-19 pandemic strikes, leading to a large recession, $2.71 trillion GDP,
and a growth of
-7.03%.
2021: With a growth rate of 8.49%, the GDP recovered to $3.02 trillion as the country
started to recover from the pandemic.
2022: With a growth rate of 7.28%, the economy grew further in 2022, surpassing pre-
pandemic levels and reaching $3.24 trillion.
Chart 5.1
Chart showing GDP rate of India
GDP rate of India

10
8
6
4
2
0
-2 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23
-4
-6
-8

2. Inflation Rate:
Inflation rates have generally been moderate over the last five years, hovering around 4-
6%.
The Reserve Bank of India (RBI) has employed various monetary policy tools to manage
inflation within a target range.
Chart 5.2
Chart showing Inflation rate in India
Inflation rate
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
2022 2021 2020 2019 2018 2017
3. Per Capita Income:
India's per capita income has been gradually increasing, but income inequality remains a
concern.
It was around $2,100 (nominal) in 2020 and has shown moderate growth in recent years.
4. Economic Reforms:
The Indian government has introduced several economic reforms, including the "Make in
India" initiative and the implementation of the Goods and Services Tax (GST) to simplify
the tax structure.

The 'Atmanirbhar Bharat' (Self-Reliant India) campaign was launched to boost domestic
production and reduce dependence on imports.
Industry analysis
With a considerable impact on the GDP and welfare of the nation, the IT & BPM sector has
emerged as one of India's most important economic drivers. In FY22, the IT sector
contributed 7.4% of India's GDP, and by 2025, it is anticipated to make up 10% of India's
GDP.
Due to the rising need for expertise and skill, the top three Indian IT businesses, TCS,
Wipro, and Infosys, anticipate creating 1.05 lakh job openings in FY22.
By 2025, it is anticipated that India's market for IT and business services will be worth
US$19.93 billion.
Indian IT firms have delivery centres all across the world. IT & BPM industry is well
diversified across verticals such as BFSI, telecom and retail.
In the Union Budget 2023-24, the allocation for IT and telecom sector stood at Rs.
97,579.05 crore (US$ 11.8 billion).
Market size of IT sector is expected to increase by $19.93 billion by 2025.
Chart 5.3
Chart showing Market size increase of IT industry

Chart 5.4
Chart showing sector wise break-up
Sector-wise Break-up of Indian IT Sector-wise Break-up of Export

market (US$ billion) FY19 Revenue FY19
IT Services
15.4 IT Services
23%
Business Process
33.0
Management
BPM
86.0 Software Products 54%
and Engineering 23% ER&D and Software
Services
32.0 Hardware
With a considerable impact on the GDP and welfare of the nation, the IT & BPM sector has
emerged as one of India's most important economic drivers. In FY22, the IT sector
contributed 7.4% of India's GDP, and by 2025, it is anticipated to make up 10% of India's
GDP.
According to National Association of Software and Service Companies (Nasscom), the

Indian IT industry’s revenue touched US$ 227 billion in FY22, a 15.5% YoY growth.
IT spending in India is expected to increase to US$ 110.3 billion in 2023 from an estimated
US$ 81.89 billion in 2021.
According to a report published by Microsoft, consultancy firm Bain & Co, and industry
body Internet and Mobile Association of India (IAMAI), India produces 16% of the entire
world’s AI talent pool – the third highest in the world. PwC India has also announced that
it is planning to hire 10,000 employees in the cloud and digital technologies space over the
next five years.
As an estimate, India’s IT export revenue rose by 11.4% in constant currency terms to US$
194 billion in FY23. Exports from the Indian IT industry stood at US$ 178 billion in FY22.
The IT industry added 2.9 lakh new jobs taking the industry’s workforce tally to 5.4 million
people in FY23.

The computer software and hardware sector in India attracted cumulative foreign
investment (FDI) inflows worth US$ 94.92 billion between April 2000-March 2023.
PE investments in the IT sector were US$ 23.4 billion in 2021. In 2021, private enterprises
in India's IT startup ecosystem got record investments totalling about US$ 36 billion, up
from US$ 11 billion in 2020.
In the Union Budget 2023-24, the allocation for IT and telecom sector stood at Rs.
97,579.05 crore (US$ 11.8 billion).
Company analysis
In this top to bottom fundamental approach, the last part is analysis of the companies. Here,
the researcher has taken basic financial ratios and analysed it to make it easy to understand
and compare the performance of the two companies for the last 5 years.
1. Solvency ratios
The ability of a corporation to pay its long-term debts and financial obligations is measured
by a financial indicator called the solvency ratio. It determines how much of a company's
assets, especially its long-term assets, can be used to pay off its long-term liabilities. Lower
financial risk is indicated by a higher solvency ratio because the company is better able to
pay its long-term debt and obligations.
A. Debt to equity ratio
A financial ratio called the debt-to-equity ratio assesses how much of a company's funding
originates from liabilities against equity (shareholders' equity). It is calculated by dividing
the total debt by the shareholders' equity.
Debt-to-equity ratio = Long term debt/ Equity Share
Standard Ratio is 2:1

Table No 5.1
Table Showing Debt to Equity ratio
Year 2019 2020 2021 2022 2023

TCS 0.03 0.09 0.10 0.08 0.08
WIPRO 0.17 0.11 0.12 0.23 0.19
Chart 5.5
Chart showing Debt to Equity Ratio
Debt to Equity ratio

0.25
0.2
0.15
0.1
0.05
0
2019 2020 2021 2022 2023
TCS WIPRO
Sources - Compiled by Researcher
Interpretation - The above data shows that debt to equity ratio of TCS in the year 2019 is
0.03, in March 2020 it is 0.09, and in 2021 the ratio is 0.10, afterwards in March 2022 it is
0.08. For Wipro, debt equity ratio in the year 2019 was 0.17, then in the year 2020 it was
0.11. In the year 2021 it increased to 0.12, in the year 2022 it was 0.23 and in 2023 it came
down to 0.19.
It is observed that the Debt-to-Equity ratio of TCS in the year 2019 is 0.03 but from 2019
to 2021 it was increased because the company had borrowed capital but in 2022 it was
again decreased because the company has buy-back the share in the year 2022. In case of
Wipro, from 2019 to 2021 it was declining but in the year 2021, the company has buy-
backed their shares so in 2022 it has increased.

B. Interest coverage ratio
The times interest earned (TIE) ratio, commonly referred to as the interest coverage ratio,
assesses a company's capacity to make interest payments on its debt. It is determined by
dividing a company's earnings before interest and taxes (EBIT) by the interest expense. A
higher interest coverage ratio shows that the business is more likely to be able to pay its
interest debts, which translates to lesser financial risk.
Interest coverage ratio= EBIT / Total Interest Expenses
Table No 5.2
Table Showing Interest Coverage Ratio
Year 2019 2020 2021 2022 2023

TCS 210.91 46.72 77.99 72.8 80.5
WIPRO 16.66 17.72 28.3 29.42 18.97
Chart 5.6
Chart showing Interest Coverage Ratio
Interest coverage ratio

250
200
150
100
50
0
2019 2020 2021 2022 2023
TCS WIPRO
Interpretation - Interest Coverage Ratio of Wipro Ltd. drastically fell by to 18.97 this year.
Interest Coverage Ratio with value of 29.42 was highest in Year Mar-22 in last Five Years.
Interest Coverage Ratio with value of 16.66 was lowest in Year Mar-19 in last Five Years.

Latest Interest Coverage Ratio with value of 18.97 is lower than Average Interest Coverage
of 22.21 in last five years.
Interest Coverage Ratio of Tata Consultancy Services Ltd. with value of 80.5 indicates the
company does have sufficient profit to service its debt. Interest Coverage Ratio with value
of 210.91 was highest in Year Mar-19 in last Five Years. Interest Coverage Ratio with value
of 46.72 was lowest in Year Mar-20 in last Five Years. Latest Interest Coverage Ratio with
value of 80.5 is lower than Average Interest Coverage of 97.78 in last five years.
2. Valuation ratios
Financial indicators called valuation ratios are employed to evaluate how appealing a
company's stock is in relation to its market value. Investors can use these statistics to assess
whether a stock is overvalued or undervalued. Price-to-earnings (P/E), price-to-sales (P/S),
and price-to-book (P/B) ratios are among the popular valuation ratios.
A. Earnings per share
A crucial financial indicator that evaluates a company's profitability per share is earnings
per share. It is computed by dividing the net income of a business by the total number of
outstanding common stock shares. Investors evaluate a company's profitability and track
its performance over time using its EPS.
Earnings per share = Net Profit after Tax and Depreciation / Outstanding Share
Table No 5.3
Table Showing Earnings Per Share
Year 2019 2020 2021 2022 2023

TCS 83.05 86.19 86.71 103.62 115.19
WIPRO 14.99 16.67 19.11 22.37 20.73

Chart 5.7
Chart showing Earning Per Share Ratio
Earnings per share

150
100
50
0
2019 2020 2021 2022 2023
TCS WIPRO
Interpretation – EPS of TCS Ltd is increasing exponentially from 2019 to 2023. EPS of
2019 was 83.05. It increased to 86.19 in 2020. It didn’t increase much in 2021 i.e., 86.71
due to Covid but it increased to 103.62 in 2022 and in 2023 it is 115.19.
EPS Ratio of WIPRO has fallen Compared to previous Financial Year. EPS Ratio with
value of 22.37 was highest in Year Mar-22 in last Five Years. EPS Ratio with value of 14.99
was lowest in Year Mar-19 in last Five Years. Latest EPS Ratio with value of 20.73 is
Greater than Average EPS of 18.77 in last five years. It shows that even though the ratio
has decreased, it is not a bad indication.
B. Price-earnings ratio
The price-earnings ratio, or P/E ratio, is a valuation metric that contrasts the share price of
a firm with its earnings per share (EPS). It is determined by dividing the stock's current
market value by its EPS.
Price Earning Ratio = Market Prices per Share / Earning per Share

Table No 5.4
Table Showing P/E Ratio
Year 2019 2020 2021 2022 2023

TCS 24.1 21.19 36.65 36.09 29.1
WIPRO 17 11.8 21.67 26.46 18.89
Chart 5.8
Chart showing P/E Ratio
Price-Earning Ratio
40
30
20
10
0
2019 2020 2021 2022 2023
TCS WIPRO
Interpretation - PE Ratio of WIPRO drastically fell this year. PE Ratio with value of 26.46
was highest in Year Mar-22 in last Five Years. PE Ratio with value of 11.80 was lowest in
Year Mar-20 in last Five Years. Latest PE Ratio with value of 18.89 is lower than Average
PE of 19.16 in last five years.
P/E Ratio of Tata Consultancy Services Ltd. with value of 29.1 shows that stock price is
high compared to company earnings and may be overvalued. PE Ratio of TCS drastically
fell by -19.37 % this year. PE Ratio with value of 36.65 was highest in Year Mar-21 in last
Five Years. PE Ratio with value of 21.19 was lowest in Year Mar-20 in last Five Years.
Latest PE Ratio with value of 29.1 is lower than Average PE of 29.43 in last five years.

3. Profitability ratios
A company's capacity to produce profits in relation to its revenue, assets, equity, or other
financial measurements is evaluated using profitability ratios. These ratios reveal
information about a company's financial health and how effectively it turns resources into
profits.
A. Operating profit margin
A profitability ratio that assesses a company's operational profit as a percentage of its

revenue is the operating profit margin, commonly referred to as operating margin. It shows
how effectively a business controls its running costs to make money off of its main business
operations.
Operating Profit Margin = Operating Profit / Net Sales *100
Table No 5.5
Table Showing Operating Profit Margin
Year 2019 2020 2021 2022 2023

TCS 28.51 27.5 27.78 27.36 25.58
WIPRO 20.81 21.23 23.24 19.75 17.43
Chart 5.9
Chart showing Operating Profit Margin
Operating Profit Margin

30
20
10
0
2019 2020 2021 2022 2023
TCS WIPRO

Interpretation - Operating Profit Margin of WIPRO has fallen by -11.75% compared to

previous Financial Year. Operating Profit Margin with value of 23.24 was highest in Year
Mar-21 in last Five Years. Operating Profit Margin with value of 19.75 was lowest in Year
Mar-19 in last Five Years. Latest Operating Profit Margin with value of 17.43 is lower than
Average Operating Margin of 20.49 in last five years. The management should take steps
to address any lags or inefficiencies in the company’s operations to improve their operating
margin.
Operating Margin Ratio of TCS Ltd. with value of 25.58 indicates that the company earns
enough money from its core business operations to cover the costs involved in maintaining
it. Operating Margin Ratio of TCS has fallen compared to previous Financial Year.
Operating Margin Ratio with value of 28.51 was highest in Year Mar-19 in last Five Years
and 25.58 was lowest in Year Mar-23 in last Five Years. Latest Operating Margin Ratio
with value of 25.58 is lower than Average Operating Margin of 27.35 in last five years.
B. Net Profit Margin
Net profit margin is a profitability ratio that measures the amount of net income generated
as a percentage of revenue. It is calculated by dividing net income by revenue. A higher net
profit margin indicates that a company is more efficiently converting its revenue into profit.
Industry Standard – 16.9
Table No 5.6
Table Showing Net Profit Margin
Year 2019 2020 2021 2022 2023

TCS 21.54 20.67 19.83 20.05 18.78
WIPRO 15.25 15.9 17.43 15.41 12.56

Chart 5.10
Chart showing Net Profit Margin
Net Profit Margin

25
20
15
10
5
0
2019 2020 2021 2022 2023
TCS WIPRO
It has been observed that the TCS company’s net profit is going down from 2018 to 2022.
It is not efficient but still it is able to keep cost under control even it is declining every
year. And there is chance that the pricing of the services is not done properly. But
according to the standard ratio the company is performing better. In case of Wipro ratio is
fluctuating. TCS net profit is more than the industry standard as well as Wipro.
4. Returns
Returns is a general term that refers to the financial gain that an investor or business owner
realizes on an investment. It can be expressed in the form of percentage or monetary value.
A. Return on assets (ROA)
Return on assets (ROA) measures how efficiently a company uses its assets to generate
profit. It is calculated by dividing net income by average total assets. A higher ROA
indicates that a company is more efficiently using its assets to generate profit.
Return On Asset - Net Income / Total Asset

Table No 5.7
Table Showing ROA
Year 2019 2020 2021 2022 2023

TCS 27.38 26.74 24.8 27.08 29.33
WIPRO 10.85 11.96 13.04 11.37 9.68
Chart 5.11
Chart showing Return on Assets
Return on Assets
40
30
20
10
0
2019 2020 2021 2022 2023
TCS WIPRO
Interpretation - ROA Ratio of WIPRO has fallen by -14.82 % Compared to previous

Financial Year. ROA Ratio with value of 13.04 was highest in Year Mar-21 in last Five
Years. ROA Ratio with value of 9.68 was lowest in Year Mar-23 in last Five Years. Latest
ROA Ratio with value of 9.68 is lower than Average ROA of 11.38 in last five years.
ROA Ratio of Tata Consultancy Services Ltd. with value of 29.33 means good return on
Assets in trailing twelve months. ROA Ratio of TCS has grown by 8.33 % Compared to
previous Financial Year. ROA Ratio with value of 29.33 was highest in Year Mar-23 in last
Five Years. ROA Ratio with value of 24.80 was lowest in Year Mar-21 in last Five Years.
Latest ROA Ratio with value of 29.33 is Greater than Average ROA of 27.07 in last five
years.

B. Return on equity (ROE)
Return on equity (ROE) measures how efficiently a company uses its shareholders' equity
to generate profit. It is calculated by dividing net income by average shareholders' equity.
A higher ROE indicates that a company is more efficiently using its shareholders' equity to
generate profit.
Return On Equity - Net Income / Shareholder’s Equity
Table No 5.8
Table Showing ROE
Year 2019 2020 2021 2022 2023

TCS 36.18 38.6 38.55 44.13 47.26
WIPRO 17.36 17.56 19.8 20.5 15.96
Chart 5.12
Chart showing Return on Equity
Return on Equity
50
40
30
20
10
0
2019 2020 2021 2022 2023
TCS WIPRO

Interpretation - ROE Ratio of Wipro Ltd. with value of 15.96 means it generates profits
efficiently by using its Shareholders Fund. ROE Ratio of WIPRO drastically fell by -21.85
% this year. ROE Ratio with value of 20.5 was highest in Year Mar-22 in last Five Years.
ROE Ratio with value of 15.96 was lowest in Year Mar-23 in last Five Years. Latest ROE
Ratio with value of 14.61 is lower than Average ROE of 18.24 in last five years.
ROE Ratio of Tata Consultancy Services Ltd. with value of 47.26 means it generates profits
efficiently by using its Shareholders Fund. ROE Ratio of TCS has grown by 8.40%
compared to previous Financial Year. ROE Ratio with value of 47.26 was highest in Year
Mar-23 in last Five Years. ROE Ratio with value of 36.18 was lowest in Year Mar-19 in
last Five Years. Latest ROE Ratio with value of 47.26 is Greater than Average ROE of
40.94 in last five years.
C. Return on capital employed (ROCE)
Return on capital employed (ROCE) measures how efficiently a company uses all of its
capital, including debt and equity, to generate profit. It is calculated by dividing operating
profit by capital employed. A higher ROCE indicates that a company is more efficiently
using all of its capital to generate profit.
Return On Capital Employed - EBIT / Capital Employed
Table No 5.9
Table Showing ROCE
Year 2019 2020 2021 2022 2023

TCS 44.97 46 47.21 52.91 57.63
WIPRO 19.97 21.76 24.10 20.43 17.46

Chart 5.13
Chart showing Return on Capital Employed
Return on Capital Employed

70
60
50
40
30
20
10
0
2019 2020 2021 2022 2023
TCS WIPRO
ROCE Ratio of WIPRO has fallen by -14.66 % Compared to previous Financial Year.
ROCE Ratio with value of 24.10 was highest in Year Mar-21 in last Five Years. ROCE
Ratio with value of 17.46 was lowest in Year Mar-23 in last Five Years. Latest ROCE Ratio
with value of 17.46 is lower than Average ROCE of 20.74 in last five years.
ROCE Ratio of Tata Consultancy Services Ltd. with value of 57.63 shows generating high
operating income by using its Total Capital Employed. ROCE Ratio of TCS has grown by
8.62 % Compared to previous Financial Year. ROCE Ratio with value of 57.63 was highest
in Year Mar-23 in last Five Years. ROCE Ratio with value of 44.97 was lowest in Year Mar-
19 in last Five Years. Latest ROCE Ratio with value of 57.48 is Greater than Average ROCE
5. Liquidity ratio
A liquidity ratio is a financial metric that measures a company's ability to pay off short-
term liabilities with its current assets. Liquidity ratios are important for investors and
analysts to assess a company's financial health and risk profile.

A. Current ratio
The current ratio is a liquidity ratio that measures a company's ability to meet its short-
term obligations, or those due within one year. It is calculated by dividing a company's
current assets by its current liabilities.
Current ratio = Current assets / Current liabilities
Table No 5.10
Table Showing Current Ratio
Year 2019 2020 2021 2022 2023

TCS 4.17 3.33 2.91 2.56 2.53
WIPRO 2.67 2.4 2.27 2.01 2.47
Chart 5.14
Chart showing Current Ratio
Current ratio
5
0
2019 2020 2021 2022 2023
TCS WIPRO

Interpretation - A current ratio greater than 1 indicates that a company has more than
enough current assets to cover its current liabilities. A current ratio of less than 1 indicates
that a company may have difficulty meeting its short-term obligations. Current Ratio of
Wipro with value of 2.67 was highest in Year Mar-19 in last Five Years. Current Ratio of
Wipro with value of 2.01 was lowest in Year Mar-22 in last Five Years. Latest Current
Ratio of Wipro with value of 2.47 is Greater than Average Current Ratio of 2.37 in last
five years.
Current Ratio of TCS has fallen by -1.01 % Compared to previous Financial Year. Current
Ratio with value of 4.17 was highest in Year Mar-19 in last Five Years. Current Ratio of
TCS trending down for at least three Years. Latest Current Ratio with value of 2.53 is
lower than Average Current Ratio of 3.10 in last five years but it is greater than 1.
B. Dividend payout ratio
The dividend payout ratio is a measure of how much of a company's net income is paid
out to shareholders in the form of dividends. It is calculated by dividing the total amount
of dividends paid out in a period by the company's net income for the same period.
Dividend payout ratio = Dividends paid out / Net income
Table No 5.11
Table Showing Dividend Payout Ratio
Year 2019 2020 2021 2022 2023

TCS 32.03 116.36 33.45 34.74 98.10
WIPRO 6.03 7.05 5.05 26.82 4.82

Chart 5.15
Chart showing Dividend Payout Ratio
Dividend Payout Ratio

150
100
50
0
2019 2020 2021 2022 2023
TCS WIPRO
Interpretation - A high dividend payout ratio indicates that a company is returning a large
portion of its earnings to shareholders. A low dividend payout ratio indicates that a
company is retaining more of its earnings to reinvest in the business.
The assessment of dividend payout ratio depends on the point of view of the investor. If
the investor is looking for periodic returns, then the lower dividend payout ratio is
desirable. However, if the investor is looking for long-term capital appreciation rather
than periodic returns then the higher dividend payout ratio is preferrable. This is because
if the company is not paying out dividend, then it is reinvesting its profits which results in
growth for the company.
DPR Ratio with value of 26.82 was highest in Year Mar-22 in last Five Years. DPR Ratio
with value of 4.82 was lowest in Year Mar-23 in last Five Years. Latest DPR Ratio with
value of 4.82 is lower than Average DPR of 9.95 in last five years.
DPR for Tata Consultancy Services Ltd. indicates that the company is reinvesting less
money back into its business, and paying out its earnings as dividends. DPR Ratio of TCS

rose handsomely by 182.34 % this year. DPR Ratio with value of 116.36 was highest in
Year Mar-20 in last Five Years. DPR Ratio with value of 32.03 was lowest in Year Mar-
19 in last Five Years. Latest DPR Ratio with value of 98.10 is Greater than Average DPR

Technical Analysis
Technical analysis of equity is the study of price and volume data to find patterns and trends
that can be used to forecast future price movements. Technical analysts use a number of
tools and approaches to spot patterns and trends because they believe that past price action
can be a reliable predictor of future price behaviour.
Some of the tools used most frequently in technical analysis are:
Charts - Technical analysts visualise price and volume data using charts. They might
employ a variety of graphs, including bar, line, and candlestick charts.
Indicators - Based on price and volume data, technical analysts employ indicators to
calculate mathematical values. Trends, momentum, and other elements can be detected
using these indicators.
Support and resistance levels - Technical analysts look at previous price movement to
determine support and resistance levels. Resistance levels are where the price has
historically encountered resistance and stopped increasing, whereas support levels are
where the price has usually found support and stopped declining.
It is possible to find both short-term and long-term trade opportunities using technical
analysis.
Trends
Uptrend -An uptrend is a market condition in which the price of an asset is rising over time.
This is characterized by higher highs and higher lows. In other words, the price is making
new highs and new lows that are higher than the previous highs and lows.
Downtrend - A downtrend is a market condition in which the price of an asset is falling

over time. This is characterized by lower highs and lower lows. In other words, the price is
making new highs and new lows that are lower than the previous highs and lows.

Sideway trend - A sideways trend is a market condition in which the price of an asset is not
moving in a clear direction. Instead, the price is moving in a range, with highs and lows
that are approximately the same. This is also known as a consolidation phase.
Chart 5.16
Chart showing Uptrend of Wipro Ltd.
Chart 5.17
Chart showing Uptrend of TCS Ltd.

In both the charts, monthly data is taken into consideration and we can see uptrend over the
years.
Indicators
1. Bollinger Band
Bollinger Bands help traders identify price volatility and potential price reversals. When
the price is within the bands, it is considered normal volatility. When the price moves
outside the bands, it may indicate overbought (above the upper band) or oversold (below
the lower band) conditions.
Bollinger Bands are a volatility indicator developed by John Bollinger. They consist of
three lines -
A. The middle band, which is typically a 20-period simple moving average (SMA).
B. An upper band, which is usually set at two standard deviations above the middle band.
C. A lower band, set at two standard deviations below the middle band.
Chart 5.17
Chart showing Bollinger Band of Wipro Ltd.

Interpretation - As we can see, the distance in upper and lower band is more from 2021 to
2022. It shows that there was more volatility in that year. All time high was on 14th Oct
2021, which was 739.
Chart 5.19
Chart showing Bollinger Band of TCS Ltd.
Interpretation - As we can see, the distance in upper and lower band is more from 2021 to
2023. It shows that there was more volatility in that year. Share price increased
exponentially. Daily all time high was on 18th Jan 2022 which was 4041, but it didn’t sustain
there for more than a day.
2. ATR (Average True Range)
The Average True Range is a technical indicator that is frequently used in the financial
markets to measure an asset's volatility. It was created by J. Welles Wilder and calculates
the average difference between an asset's high and low prices during a given time frame.
greater volatility is indicated by a greater ATR value, whilst lesser volatility is suggested

by a lower ATR value. ATR is frequently used by traders to set stop-loss levels and
determine position sizing.
3. Heikin-Ashi
Heikin-Ashi, a type of candlestick charting technique used in financial market technical

analysis, means "average bar" in Japanese. Heikin-Ashi charts, in contrast to conventional
candlestick charts, smooth out price data to provide easier to understand visual patterns.
Heikin-Ashi charts are particularly useful for trend analysis and can help traders identify
potential reversals and trends.
Using Heikin-Ashi and ATR both together gives more accurate results.
Chart 5.20
Chart showing ATR and Heikin-Ashi of Wipro Ltd.
ATR with Heikin-Ashi and volume helps us to determine volatility in stock price. High
ATR represents high volatility. Heikin-Ashi help us to determine uptrend or downtrend of
the stock. Volume should also be high while buying or selling the stock as it represents that

there are a greater number of buyers and sellers interested in the stock, In the above chart,
we can see that in 2021 and 2022 the volume is more because new traders entered the
market in Covid 19.
Chart 5.21
Chart showing ATR and Heikin-Ashi of TCS Ltd.
ATR of TCS Ltd is currently high. The volume was more in the years 2020, 2021 and 2022
because of Covid 19.
4. MACD – Moving Average Convergence/ Divergence
The popular momentum indicator MACD is used in technical analysis to spot possible
shifts in momentum, trend changes, and overbought or oversold situations in the financial
markets. The 12-period Exponential Moving Average (EMA) is subtracted from the 26-
period EMA to compute it. The outcome is referred to as the MACD line. In order to
produce buy and sell signals, the MACD line is additionally subjected to a 9-period EMA
known as the signal line. These signals are frequently verified by the histogram, which is
produced from the difference between the MACD line and the signal line. Traders use the

MACD a lot to help them decide when to initiate or exit positions in different financial
instruments.
MACD line, which can function as a trigger for buy or sell signals. Traders may buy the
security when the MACD line crosses above the signal line and sell—or short—the security
when the MACD line crosses below the signal line.
Chart 5.22
Chart showing MACD of Wipro Ltd.
In the above chart, we can see that in July 2020, MACD line is cutting the signal line from
below. This indicates bullish trend and buy signal. We can observe that the trend is actually
an uptrend for following months. Similarly in Feb 2022, the MACD line is cutting the
signal line from above. This indicates downtrend and bearish dominance. This is indicator
of selling the stock or short selling.

Chart 5.23
Chart showing MACD of TCS Ltd.
In the above chart, we can see that in August 2020, MACD line is cutting the signal line
from below. This indicates bullish trend and buy signal. We can observe that the trend is
actually an uptrend for following months. Similarly in March 2022, the MACD line is
cutting the signal line from above. This indicates downtrend and bearish dominance. This
is indicator of selling the stock or short selling.
Patterns
There are several common chart patterns that traders and analysts look for when conducting
technical analysis. Here are some of the most widely recognized patterns –

1. Head and Shoulders
This is a reversal pattern that consists of three peaks – a higher peak (head) between two
lower peaks (shoulders). The pattern suggests a shift from an upward trend to a downward
trend.
Chart 5.24
Chart showing Head and Shoulder pattern in TCS Ltd.
Here, on 9th May 2022, the pattern of head and shoulders is formed. After the right shoulder,
the trend becomes downtrend. It is selling indicator.
2. Double Top and Double Bottom
A double top is a bearish reversal pattern, with two peaks at roughly the same price level,
signalling a potential trend reversal. A double bottom, on the other hand, is a bullish reversal
pattern with two troughs at approximately the same price level.

Chart 5.25
Chart showing Double Top pattern in TCS Ltd.
Here after the double top pattern, the trend becomes downtrend.
Chart 5.26
Chart showing Double Bottom pattern in Wipro Ltd.

Here, after the bearish trend, double bottom pattern is formed and bullish trend reversal
occurred. This is the signal to buy the stock.
3. Cup and Handle
This is a bullish continuation pattern. It forms a "cup" shape followed by a "handle." The
handle is a consolidation phase before the price is expected to continue its upward move.
Here, after the formation of Cup and the handle pattern, the bullish trend became stronger.
This indicates buying signal.
Chart 5.27
Chart showing Cup and Handle pattern in Wipro Ltd.
4. Flag and Pennant
These are short-term continuation patterns. A flag pattern forms a rectangular shape, while
a pennant forms a small symmetrical triangle. Both patterns suggest a brief consolidation
before the prior trend resumes.

Chart 5.28
Chart showing Flag and Pennant pattern in Wipro Ltd.
Chart 5.29
Chart showing Flag and Pennant pattern in TCS Ltd.

5. Ascending and Descending Triangles
Ascending triangles are bullish patterns characterized by a horizontal resistance line and a
rising support line. Descending triangles are bearish patterns with a horizontal support line
and a descending resistance line. These patterns typically resolve with a breakout in the
direction of the trend.
Chart 5.30
Chart showing Descending triangle pattern in Wipro Ltd.
Chart 5.31
Chart showing Ascending triangle pattern in TCS Ltd.

6. Rectangle (Trading Range)
A rectangle pattern forms when the price moves between horizontal support and
resistance levels. It indicates a period of consolidation and indecision.
Chart 5.32
Chart showing Rectangle pattern in Wipro Ltd.
Chart 5.33
Chart showing Rectangle pattern in TCS Ltd.

7. Rounding Bottom (Saucer)
This is a reversal pattern that forms a "U" shape. It indicates a transition from a
downtrend to an uptrend.
Chart 5.34
Chart showing Rounding Bottom pattern in Wipro Ltd.
Chart 5.35
Chart showing Rounding Bottom pattern in TCS Ltd.

Above charts show the change in trend with rounding bottom pattern. Before it, the trend
was downtrend but rounding bottom pattern formed and the bulls became dominant. It is
the signal to buy.
8. Three Black Crows and Three White Soldiers
These are candlestick patterns that suggest potential reversals. Three black crows are
bearish, while three white soldiers are bullish.
Chart 5.36
Chart showing Three White Soldiers pattern in Wipro Ltd.
In Three White Soldiers pattern, three green candles form and the trend becomes bullish. It
is bullish reversal pattern.

Chart 5.37
Chart showing Three Black crows pattern in TCS Ltd.
Opposite to three white soldiers pattern, Three Black Crows pattern is formed when three
red candles form creating bearish trend. This represents that bears have become dominant
force.
9. Support and resistance line
Support Line - A support line, also known as a "support level" or just "support," is a price
point where there has historically been a tendency for the price of an asset to stop declining
and maybe even reverse direction. It denotes a point on the chart where buyers are more
willing to intervene and stop future price drops due to increased demand for the asset.
Support levels are a useful tool used by investors and traders to find possible purchases. It
is seen as a favourable entry point when the price of an asset approaches or hits a support
level since it implies that there might be more buyers than sellers at that price, raising the
possibility of a price bounce or reversal.

Resistance line - A resistance line, sometimes referred to as a "resistance level" or simply

"resistance," is a price point where there has historically been a tendency for the price of
an asset to fall and possibly even reverse its upward trend. It denotes a spot on the chart
when there is higher supply of the asset, creating more selling pressure.
Traders and investors utilise resistance levels to spot possible sell or short opportunities. It
is considered a possible exit or shorting point when the price of an asset approaches or
reaches a resistance level since it suggests that there might be more sellers than buyers at
that price, making it a difficult zone for the price to overcome.
Chart 5.38
Chart showing Support and Resistance Lines of Wipro Ltd.
In both the charts, Support line is represented by Pink colour and Resistance line is
represented by Blue colour.

Chart 5.39
Chart showing Support and Resistance Lines of TCS Ltd.

Chapter 6 - Suggestions and recommendations
Limitations of the project
The study is restricted to two companies based on fundamental and technical analysis
Detailed study of the topic was not possible due to limited time of the project.
Suggestions and conclusions are based on data analysis of past five years. The future
cash flow projection and DCF approach has not been considered.
Recommendations
A. By analysing the IT industry with the help of fundamental and technical analysis, it
has been revealed that this industry has a lot of potential to grow. So, recommending
investing in IT industry with no doubt is going to be a good and smart option
because this industry is booming like never before not only in India but all over the
world.
B. There are various factors which effects on stock market, so an investor must be
aware of all those.
C. Short term investors should look on various support and resistance of stocks to buy
or sell and make profit.
D. An investor must take research about stock of company and its previous data before
investing.
E. There are three factors which an investor must consider for selecting the right
stocks.
Business - An investor must look into what kind of business the company is doing,
visibility of the business, its past track record, capital needs of the company for
expansion etc.
Balance Sheet - The investor must focus on its key financial ratios such as earnings per
share, price earnings ratio, debt-equity ratio, dividends per share etc. and he must also
check whether the company is generating cash flows.

Historical data – The investor should study historical data like charts and ratios before
short term investment. Technical analysis is more important for short term investors.
F. The management of Wipro Ltd should pay more attention to the company as the
ratios in the recent years are not up to the industry standards.

Chapter 7 – Conclusion
Findings
1. The information Technology industry in India comprises of Information

Technology services consulting and outsourcing. The IT Sector contributed 7.4%
of India’s GDP and it is expected to contribute around 10% to India GDP 2025.
2. It has observed that from the debt-to-equity ratio that TCS Limited had borrowed
capital from the market because company has buyback their share in the year 2017-
2018and in the year 2022 but Wipro Limited has less borrowing from the market.
3. Both the company are able pay their interest easily on the given period of time but
TCS has higher interest coverage ratio compared to Wipro and the Industry
Standard i.e., greater than 1.
4. TCS Limited has more earning per share ratio compared to Wipro Limited from last
5 year but TCS the company is earning more profit to give to its shareholder it is
good for the company as Compared to Wipro.
5. Wipro Limited Price Earning ratio is fluctuating every year from last 5 year but in
case of TCS Limited there is an increase in Price Earning ratio and TCS ratio are
high compared to Wipro Limited.
6. Tata Consultancy Services Limited has more operating profit compared to Wipro
from last 5 years.
7. TCS Limited has more net profit margin compared to Wipro Limited.
8. In case of Return on Asset the TCS has declined but it had not decreased by the
Industry Standard but in case of Wipro Limited it had not crossed the industry
standard. So TCS Limited has higher ROA compared to Wipro Limited.
9. ROCE of TCS Limited is more compared to Wipro limited even both are
performing better as the ratio is greater from the industry standard.
10. ROE (Return on Equity) is more of TCS Limited compared to Wipro Limited.
11. Current Ratio of the TCS Limited is fluctuating in every year but the current ratio
of Wipro is stable. Wipro is doing well in their short-term debt of the company.
12. TCS Limited is giving a steady dividend payout to the investor from last 5 year but
Wipro limited is giving low dividend compared to TCS Limited.

13. Investing in TCS for long time could be a good option for the investor.
14. TCS overall performance is good so people can invest in the TCS Share.
Conclusion
In conclusion, in-depth examination of the Indian IT market with a special emphasis on

Wipro and TCS has shed important light on the present situation and prospects of these
businesses. I investigated important financial parameters, growth trends, and competitive
positioning through the fundamental study. In parallel, I examined market sentiment,
pricing patterns, and stock price fluctuations in my technical analysis.
Both prominent IT service providers Wipro and TCS have proven to be resilient and
adaptable in the face of external adversities. My fundamental study revealed sound
financial standing, long-term expansion plans, and a sizable clientele, all of which support
their competitive advantage.
On the technical front, I noticed that these companies' stock price performance and market
sentiment frequently follow larger market patterns, highlighting the importance of
macroeconomic issues. I was able to pinpoint potential entry and exit points for investors
and traders using technical analysis, which also included chart patterns and indicators,
indicating both short-term and long-term trading opportunities.
It's important to recognise the dynamic nature of the IT industry, which can be significantly
impacted by factors such as geopolitics, technical breakthroughs, regulatory changes, and
global economic situations. Therefore, investors in this industry must maintain a constant
eye and adapt to changing market conditions.
As a result of their solid foundations and dynamic technical patterns, Wipro and TCS
remain potential investments in the IT industry, according to the analysis.

Chapter 8 - Bibliography
(Sónia R. Bentes, 2013), Raúl Navas “The Fundamental Analysis: An Overview”, Int. J
Latest Trends Fin. Eco. Sc., Vol‐3 No. 1 March, 2013
(Himanshu Vasani, 2021), Dr. Vijay Gondaliya “A study on Fundamental and Technical
analysis on IT sector Companies”, JETIR May 2021, Volume 8, Issue 5
(Naved), “Technical Analysis of Indian Financial Market with the Help of Technical
Indicators”, International Journal of Science and Research (IJSR)
B. Mahesh Goud, Dr. N. Ramjaneyulu (2022),” A study on Equity analysis with special
reference to IT Industry Volume 8 Issue; 7 July 2022 Journal DOI: 10.36713/epra2013, ISI
Value 1.188
Bhumika Dang, Aditya Singhal (2021), “Fundamental Analysis: A Study of IT Sector in

India, HANS SHODH SUDHA, Vol. 1, Issue 4, (2021), pp. 17.24
Chitra, R. "Technical analysis on selected stocks of energy sector." International Journal of

Management & Business Studies 1.1 42-46. (2011)
Webliography
www.nseindia.com
www.bseindia.com
www.ibef.com
www.moneycontrol.com
www.topstockresearch.com
www.um.edu.mt
Annual Report of TCS Ltd and WIPRO Ltd

Chapter 9 - Annexure
Balance Sheets of Wipro Ltd.


Profit and Loss statement of Wipro Ltd


Balance Sheet of TCS Ltd

Profit and Loss Statement of TCS Ltd



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SUMMMER INTERNSHIP REPORT

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

MET’s INSTITUTE OF MANAGEMENT

BHUJBAL KNOWLEDGE CITY,

BANDRA RECLAMATION, BANDRA, MUMBAI - 400 050

FUNDAMENTAL AND TECHNICAL ANALYSIS OF IT

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF

MET’s INSTITUTE OF MANAGEMENT

A PROJECT REPORT ON SUMMER INTERNSHIP AT

FUNDAMENTAL AND TECHNICAL ANALYSIS OF IT SECTOR

IN INDIA – WIPRO AND TCS

SANIKA PRASAD KULKARNI

ROLL NO: 094

Date: Name: Sanika Kulkarni

Name: Sanika Prasad Kulkarni Signature of student

SR. NO. CONTENTS PAGE NO.

SR. NO. CONTENTS PAGE NO.

SR. NO. CONTENTS PAGE NO.

The focus of the report is on fundamental and technical analysis.

Technical Analysis – According to CFA institute, “Technical analysis is a form of security

Sanika Kulkarni Page 1 of 71

Information about the companies

TCS - (TATA CONSULTANCY SERVICES) LIMITED

Tata Consultancy Services (TCS) is a Mumbai-based multinational provider of information

Sanika Kulkarni Page 2 of 71

TABLE SHOWING DATA OF TCS

Sanika Kulkarni Page 3 of 71

TABLE SHOWING DATA OF WIPRO

Formally Western India Palm Redefined Oils

Sanika Kulkarni Page 4 of 71

Chapter 2 - Need and justification of project

Need of the study

Scope of the study

Sanika Kulkarni Page 5 of 71

Chapter 3 - Objectives of the project

1. To provide a thorough overview of the Indian IT sector, emphasising its present

2. To assess Wipro's and TCS's fundamental financial performance, including their

3. To do a technical analysis on Wipro and TCS stock prices, highlighting significant

5. To present a comprehensive conclusion that synthesizes the key findings of the

Sanika Kulkarni Page 6 of 71

Research design or research methodology is the procedure of collecting, analysing and

The Research is descriptive in nature. Descriptive Research aims to accurately and

Sanika Kulkarni Page 7 of 71

Chapter 5 - Data collection and data analysis

Indian Economy analysis

1. GDP trends from 2018 through 2022:

2019: The economy grew by 4.04%, reaching $2.87 trillion.

Chart showing GDP rate of India

GDP rate of India

Sanika Kulkarni Page 8 of 71

Chart showing Inflation rate in India

3. Per Capita Income:

Sanika Kulkarni Page 9 of 71

Market size of IT sector is expected to increase by $19.93 billion by 2025.

Chart showing Market size increase of IT industry

Sanika Kulkarni Page 10 of 71

Chart showing sector wise break-up

Sector-wise Break-up of Indian IT Sector-wise Break-up of Export