Tata Consultancy Services comes from the prestigious Tata Group which deals in IT services and consultancy business globally.
TCS has big names as its clients including Google, and Amazon.
Let’s discuss TCS’ share target price by 2030 in detail. We have divided the target price analysis into 3 parts – TCS share target price by 2024, 2025, and 2023.
TCS Share Price Target by 2030
TCS’ share price is currently trading around Rs 3370-80. The IT giant stock has given a negative return of merely 7% in one year.
TCS reported a net profit of Rs 42,303 crore for the year 2022-23 increased by 10% compared to Rs 38,449 crore made in the year 2022.
But according to research analysts, TCS could give you better returns of up to 28-30% in the long run and you can expect TCS to trade around Rs 5100 by 2030 and its EPS can also cross Rs 50.
#1. TCS Share Price Target for 2024
According to market experts, TCS’s stock price fell recently because of investor worries about the upcoming US economic recession that created selling pressure.
This might continue until the year 2024 because of the worries about the economic recession in the US and European countries that could affect businesses.
Experts are expecting a slow rise in the IT stock price in the upcoming months and you can expect TCS could be trading around Rs 3500-3600 by the end of this quarter which can be a good time for investing in this IT stock.
However, TCS is still generating good revenues and profit growth is also there, 65% of the research analysts have a buy call for Infoys with a target price of up to Rs 3800-4000 by the end of the 2024 year.
#2. TCS Share Price Target for 2025
Nuvama’s Research analysts have a favorable view of TCS from a long-term investment perspective. They expect a decent growth of TCS and other IT stocks in the long run when the winter is over.
According to Business Today experts, TCS has the potential to give up to 25-30% returns by 2025 and you can expect it at a price range of Rs 4,200 to Rs 4,400.
#3. TCS Share Price Target by 2030
Most of the stock market experts consider TCS to be a good buy from a long-term perspective. If you have a goal of keeping the IT stock by 2030, then you can expect a handsome return of around 48%-50%, as per the Business Today analysis.
You can expect TCS stock to trade around Rs 5100 by 2030.
You can also read our analysis of the Wipro share price target for 2025, another Indian Tech stock that you can also go through for investment purposes.
Fundamental Analysis of TCS
I. Revenue growth
TCS has shown consistent growth in its revenues on a yearly basis from the past years.
TCS’s annual revenue in 2022-23 surged by 17.6% compared to the fiscal year 2021-22, showcasing its resilience and adaptability even amidst challenging times.
|Revenue (in crores)
|Revenue Growth (in %)
II. Profit growth
TCS has shown consistent growth in its annual profits over the last 3 years despite the US economic recession.
|Net Profit (in crores)
However, the PE (Price to Earning) ratio is in a downtrend at 30% in 2023 as compared to 44% in the 2021 year.
However, the Earnings Per Share of the stock has been showing consistent growth over the last 5 years.
If you see TCS’s Return on Equity (ROE), it is rising tremendously around 43% growth on a YoY basis.
TCS has shared a good amount of its money with the people who own its shares. Since 2005, it distributed 70% to 80% of the money it made as dividends. TCS claims to have a dividend payout ratio above 99%, but as per the analysis tools like screener, TCS has maintained a healthy dividend payout of 61.4%.
Technical Analysis of TCS
If you check out the moving averages of TCS, you can see the technicals are showing a strong buy for a 1-month view. All the 12 moving averages are giving a buy signal.
The momentum oscillators also show positive sentiments for TCS including RSI which is at 56 shows a Buy signal. Only the Ultimate Oscillator is ‘Neutral’ because of the past month’s selling pressure.
TCS’s Business Prospects
TCS serves around the globe in top companies which shows its significant presence in the global IT industry. TCS’s major revenue streams are as below –
|Banking, Finance, Services & Insurance (BFSI)
|Retail & Consumer Business
|Communication, Media & Technology
The major chunk of TCS’s business comes from the United States followed by Europe. The revenue breakup geography-wise is shown below.
Tata Consultancy Services (TCS) recently secured a big contract with the British Broadcasting Corporation (BBC). TCS will be helping BBC with their services for several years as per the contract.
TCS also has another deal in the works with a British store called Marks & Spencer. This deal could be worth a whopping $1 billion.
These big deals have demonstrated TCS’s reputation among global brands and ensure a promising future for investors.
Major Risks of Investing in TCS
- Industry Competition: TCS faces tough competition from other big global IT companies like Infosys and Wipro. This could affect how much of the market they have and how much they can charge.
- Currency Fluctuations: TCS does business globally in US dollars. When the value of USD changes, it can fluctuate their revenues and profits.
- Economic Uncertainty: Nobody can predict anything going on in global economies will eventually give good or bad results. Things like a recession can make global clients spend less on IT, which can hurt TCS.
- Dependency on Key Clients: TCS’s business majorly depends on its US clients. This can be risky because if there’s a problem in the US economy, that may raise lower demand concerns, which can make TCS have a hard time.
Considering the expert’s analysis, you can estimate approximately 50% returns in the long run. By 2030, it is projected that TCS may trade at around Rs 5100. However, you must research thoroughly and seek professional advice, if required, before investing your hard-earned money
TCS, or Tata Consultancy Services, is a big company in the IT (Information Technology) industry. They provide services to businesses and help them with technology and solutions.
TCS has many other companies in the same industry that are also trying to get clients. This competition can affect how much business TCS gets and how much money they can make.
TCS does work for clients in different countries and gets paid in US dollars. When the value of money changes, it can make TCS’s income go up or down, especially when Indian Rupees become stronger than US Dollars.
TCS’s revenue growth reflects how much money they’re making from their services. Positive revenue growth suggests a thriving business, while stagnant or declining growth might indicate challenges in attracting clients or maintaining demand.
TCS has shown outstanding profitability during the past years which indicated effective cost management and a better ability to weather economic uncertainties.
Geopolitical factors like international tensions or trade policies can impact TCS’s global operations and client relationships. Staying informed about these factors is important for understanding potential risks and opportunities.
Over the past years, TCS has demonstrated consistent revenue growth and profit trends. The company’s financial stability is evident in its robust EPS and increasing ROE.