Tata Consultancy Services Ltd

CMP: 945

Tata Consultancy Services, a division of Tata Sons Limited, is a global IT services organization that provides a comprehensive range of IT services to its clients in diverse industries. The Company, caters to finance and banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical, and utility industries.

TCS is an excellent long term buy among Tech Blue Chips. It has corrected over 20% from its peaks. Revenues have grown steadily and doubled from 15,000 Crores to almost 30,000 Crores in the last 5 years. Profits have also doubled in the same period from 3757 Crores to 7569 Crores on constant and steady NPM. Strong NPM at close to 26%. Good dividend yields of close to 1.50%. Its currently trading at a P/E of 23. Buy on dips and hold for long term gains.