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Tata Consultancy Services
TCS · Nifty 50
₹2,223
Price 2026-06-17
At a Glance
Fundamental
85/100
STRONG
Trust
95/100
Verification
Coverage
89/100
HIGH
Quick Take
Tata Consultancy Services scores 85/100 on fundamentals (strong). Tata Consultancy Services: PE above historical average. BROAD EXPANSION regime.
Fundamental Score: 85/100 · STRONG · 1 signals detected
DuPont Analysis
ROE 46.0% broken into three drivers. Each shows how efficiently the company generates returns.
ROE of 46.03% is strong efficiency-driven and stable. Net margin of 18.6% × asset turnover of 1.46x × leverage of 1.7x.
What This Means
Net margin of 18.6% means the company keeps ₹18.6 as profit for every ₹100 of revenue. This is a healthy margin. Asset turnover of 1.46x means the company efficiently uses its assets to generate revenue. Leverage of 1.7x means the company uses moderate debt. Returns are primarily driven by operations, not borrowing.
Margin Structure
Gross
41.2%
Operating
25.2%
Net
18.6%
Gross margin 41.2% → operating margin 25.2% → net margin 18.6%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.
Financial Health
Earnings Quality
ADEQUATECash flow covers net income 1.1x — earnings are ADEQUATE quality. Cash conversion is reasonable.
Debt Sustainability
COMFORTABLEInterest covered 54.7x — very comfortable. Debt service is not a concern. Debt/EBITDA at 0.2x is low — balance sheet has capacity.
Free Cash Flow
STRONGFCF margin at 18.1% — strong cash generation. Business is self-funding.
Peer Comparison
Key Watchpoints
Breaks above ₹2334 (+5%)
Trend reversal confirmation
Breaks below ₹2112 (-5%)
Further downside risk
PE reverts to 5Y median of 15.9
Valuation normalization
It sector entering leadership
Sector rotation signal
Detected Patterns
Risk Flags
Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.
Strong insider alignment. Promoters have significant skin in the game.
⚠️ 1 critical + 0 warning flags. Exercise caution.
Data Quality
News Correlation
50 articles scanned for fundamental themes