POSITIONAL TRADING: TCS SHARE PRICE

Hello everyone and welcome back to one more exciting stock where we will analyze TCS share price history in the best possible way through Business, Fundamental and Technical analysis.

So, today let’s have a complete understanding of TCS share.

BUSINESS ANALYSIS

TCS was established in 1968.

TCS has a wide geographic footprint which as follows:

1. North America.
2. Latin America.
3. United Kingdom.
4. Continental Europe.
5. Asia – Pacific.
6. India and the Middle East & Africa.

This company is a part of Tata group which is one of the most respected business groups.

The headquarters of this company is in Mumbai.

TCS has 285 offices in 46 countries.

The work on the first international assignment was started in early 1971.

India’s 1st R&D division was set up by TCS in 1981.

The acquisition of public sector unit CMC Ltd was completed in the year 2001.

The first company to cross the 1 billion dollar revenue mark in the year 2003.

TCS shares were publicly listed in the year 2004.

In the same year, the company acquired WTI Advanced Technology Ltd and TCS Business Transformation Solutions Ltd.

The company was voted the Overall Most Outstanding Company in India, in Asiamoney’s 2018 Asia’s Outstanding Companies poll.

The company has ranked number one in Germany and Switzerland for customer satisfaction.

KEY BUSINESS POINTS

TCS share has 5 verticals in industry which are as follows:

· Banking, finance services and insurance (BSFI) which accounts for 39% of revenues.

· Retail and consumer business which accounts for 17% revenue.

· Communication, media, and technology account for 16% of their revenue.

· Manufacturing vertical accounts for 11% revenue.

· Rest of the verticals have a 17% of the share in their revenue.

The range of platforms created by the company are TCS BaNCS, TCS iON, Ignio, TCS ADD, etc.

TCS has a brand value of 13.5 Billion USD.

The company is giving massive attention to research and development which is showcased by their performance in the year 2020 wherein they applied for 5,200 patents.

The company has an employee base of 450,000+ employees of which about 37% are women.

Now, coming to the financials of the TCS share.

FINANCIAL KEY METRICS

The Market Capitalization of TCS share is ₹ 1,337,111 Cr.

The TCS share has a price to earnings ratio of 37.9 which is slightly greater than the industry price to earnings ratio of 35.8.

The return on capital employed of the TCS share is 48.9% which is superb and shows that the company is providing awesome returns on the capital invested in it.

The return on equity of TCS share is 39.1% showcasing the company’s strong return on the investment done by their investors.

The debt to equity ratio of TCS share is 0.09 which is almost negligible.

FINANCIAL ANALYSIS

For the quarter ended 30-06-2021, TCS share reported a sales of Rs 45,411 Cr.

The sales of the company were up by almost 4% from last quarter sales of Rs 43,705 Cr.

The net profit of TCS share was Rs 9,008 Cr in the latest quarter ended 30-06-2021.

The earning per share of the company is Rs 24.35 which is as per the quarter ended 30-06-21.

SHARE HOLDING SYNOPSIS

PROMOTERS – 72.19%.

FIIs – 15.43%.

DIIs – 7.97%.

GOVERNMENT – 0.04%

PUBLIC – 4.38%.

TCS share stands tall at 1st position as per the current market capitalization.

This is a brief overview of the financials of the TCS share which shows the dominance in their respective market.

Now, let’s deep dive into the technicalities of TCS share.

CHART PATTERN ANALYSIS

If we take a closer look at the chart in a daily time frame, an ascending triangle is formed.

For TCS shares there is 1 target as stated in the above image.

TCS share price had given a breakout from where the price has not stopped moving in an upward direction.

The TCS share price on 24th August 2021 is Rs 3,613.

MOVING AVERAGE

For TCS share price analysis, we are taking 9 days and 21 days moving average.

In the history of TCS share price, whenever the 9 days moving average crosses the 21 days moving average there is a change in the trend of the share.

The 9 days and 21 days moving average are trading a bit far from each other which shows that the stock is in a bullish trend.

The red line indicates the 9 days moving average while blue shows the 21 days moving average.

SUPER TREND

When we take a closer look at the daily timeframe, the super trend is suggesting a buying signal.

The buying signal indicates to participate in this stock for quick gains.

DISCLAIMER:

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