One of the renowned software company not only in India but even in the world is of course TCS and if you see that TCS is the second largest company in India in the sense of market capitalization while second largest IT company in the world and India’s largest company in IT.
Now our concern is that whether it is right time to invest in TCS. Of course here we will find its correct answer.
If we see the sales figure of TCS in September 2021 quarter is Rupees 46 867 crores which jumped to Rupees 48885 crores. Coming to the expenses of TCS which also increased from Rupees 35452 crores in December 20 21 quarter as compared to that of previous quarter which was of Rupees 33751 crore. Now the operating profit here jumped to Rupees 13433 cross against its previous September 2021 quarter which was of Rupees 13116 crores. If we see its Profit Before Tax i.e. PBT is rupees 13191 crore rupees in December quarter 2021 which showed a growth against previous quarter of rupees 12969 crores. Coming to its net profit in the previous quarter was rupees 9624 crore rupees against December quarter 2021 where net profit was Rupees 9769 crores. EPS Earning per share is rupees 26.4 in December 21 quarter as compared to September 21 quarter was rupees 26.02.
At the moment TCS share is trading at 37.5 P/E.
Now coming to the recommendation whether we should buy TCS stock or not. Here TCS is trading at the good level of of 37.5P/E. If we compare to the other IT companies we will find that it is trading comparatively at low P/E. Also we have find that TCS is performing very good in all the quarters. So of course we provide a Buy recommendation on this. Our target price for TCS is rupees 4500 which could be achieved in the coming 3 to 6 months.