TCS Stock Upcoming Dividend: A Cause for Investor Excitement and Confidence

TCS Stock Upcoming Dividend: A Cause for Investor Excitement and Confidence
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TCS Stock : Upcoming Earnings News

TCS is gearing up to share its financial performance for the second quarter on October 11, 2023. Investors and analysts eagerly await this report for insights into the company’s progress.

Dividend Consideration:

Excitingly, TCS’s Board of Directors is considering a second interim dividend for the financial year 2023-24.

The important Record Date for this dividend is fixed at October 19, 2023, creating a sense of anticipation among shareholders.

Strong Q1 Financial Highlights (FY 2023) Of TCS Stock:

In the first quarter of the fiscal year 2023, TCS achieved remarkable financial results: Net Profit soared by an impressive 17% year-on-year (YoY) to reach ₹11,074 crore.

The company’s Consolidated Revenue showed robust growth, rising by 13% YoY to ₹59,381 crore.

TCS’s annual revenue growth of 16.93% outperformed its 3-year Compound Annual Growth Rate (CAGR) of 12.19%.

Detailed Quarterly Performance (Jun 23 vs. Mar 23):

A closer look at the quarterly performance showcases several positive trends:

Total Income witnessed an encouraging growth rate of 10.73%. Total Expenses increased moderately by 2.70%. Earnings Before Interest and Taxes (EBIT) demonstrated healthy growth at 1.66%.

Profit After Tax (PAT) continued its upward trajectory, posting growth of 2.79%. The EBIT Margin for June 2023 stood at a solid 24.93%.

Financial Strength Indicators:

Balance Sheet (FY 2023 vs. FY 2022):

Total Assets experienced a positive growth rate of 1.51%. Total Liabilities expanded by 11.50%.

Total Equity, reflecting ownership strength, increased by 1.51%.

The Current Ratio, an indicator of financial stability, is at a healthy 2.53.

Cash Flow Trends (FY 2023 vs. FY 2022):

Operating Activities (CFO) displayed robust growth of 15.05%. Investing Activities (CFI) improved significantly, transitioning from -₹897 crore to ₹39 crore.

Financing Activities (CFF) increased from -₹33,581 crore to -₹47,878 crore, signaling strategic investments.

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Key Financial Ratios (FY 2023) Of TCS Stock:

These ratios underscore TCS’s financial prowess:

Return on Equity (ROE) at a strong 46.61%.

Return on Capital Employed (ROCE) showcasing a robust 57.63%. Return on Assets (ROA) standing at a healthy 29.33%.

An Interest Coverage Ratio of 80.50 signifies sound financial management.

Asset Turnover of 1.46 reflects efficient resource utilization. A reasonable P/E Ratio of 27.86 points to investor confidence.

P/B Ratio at 12.98 suggests attractive valuation. EV/EBITDA Ratio of 18.55 indicates strong profitability.

EBITDA Margin at 27.81% showcases operational efficiency.

Consistent Dividend Record:

TCS has a history of rewarding shareholders:

The most recent dividend, announced on June 30, 2023, delighted investors. The Ex-Date for this dividend was July 20, 2023.

Dividend yields have varied, with an impressive peak at 6700%, offering attractive returns.

Shareholder Confidence:

A robust shareholding pattern:

Promoters maintain a substantial stake of 72.30%, demonstrating unwavering confidence in the company’s future.

Foreign Institutional Investors (FIIs) hold 12.46%, indicating global trust. Domestic Institutional Investors (DIIs) have a strong 9.75% stake, reflecting local support.

Mutual Funds (MF) contribute with a 3.48% stake.

Other shareholders collectively hold 5.49%, highlighting broad-based ownership.

Tata Consultancy Services Ltd. (TCS)Stock Price Update on NSE and BSE – September 29, 2023”

NSE (National Stock Exchange) Data:

Current Stock Price: As of September 29, 2023, at 03:59 pm IST, Tata Consultancy Services Ltd. (TCS) traded at ₹3,528.60, reflecting a positive change of ₹8.16 (0.23%) from the previous session.

Price Trends on NSE:

Previous Close: TCS closed the previous session at ₹3,536.75.

High & Low Prices: During the trading session, TCS reached a high of ₹3,580 and a low of ₹3,505.55.

Opening Price: The stock opened at ₹3,537.20 on this trading day.

Trading Volume: A total of 2,243,791 shares of TCS were exchanged on NSE.

VWAP (Volume-Weighted Average Price): The VWAP for TCS on NSE stood at ₹3,536.94.

BSE (Bombay Stock Exchange) Data:

Current Stock Price: On BSE, Tata Consultancy Services Ltd. (TCS) traded at ₹3,530.75 as of September 29, 2023, at 03:58 pm IST, reflecting a change of ₹6.50 (0.18%) from the previous session.

Price Trends on BSE:

Previous Close: TCS closed at ₹3,537.25 on BSE in the previous session.

High & Low Prices: During the trading session on BSE, TCS reached a high of ₹3,580 and a low of ₹3,506.00.

Opening Price: The stock opened at ₹3,535.00 on BSE on this trading day.

Trading Volume: A total of 83,502 shares of TCS were traded on BSE.

VWAP (Volume-Weighted Average Price): The VWAP for TCS on BSE was ₹3,541.68.

Investing in TCS Stock: A Comprehensive Guide to Its Benefits for Investors

Strong Financial Performance: Discover how TCS maintains robust financial performance, offering stable revenue growth and healthy profit margins, attracting long-term investors.

Dividend History: Explore TCS’s track record of rewarding shareholders with dividends, including the latest announcement of a second interim dividend for FY 2023-24.

Shareholder Confidence: Learn about the high level of confidence in TCS’s future, with substantial promoter stakes and trust from foreign and domestic institutional investors.

Stable IT Sector: Explore TCS’s position in the resilient and growth-oriented IT Software sector, specializing in IT Consulting & Software services.

Attractive Valuation: Understand why TCS stock may be attractively valued, appealing to value investors, based on key financial ratios like the P/E and P/B ratios.

Global Presence: Discover how TCS’s global presence and diverse clientele help mitigate geographic concentration risks.

Strong Cash Flow: Explore TCS’s ability to generate cash, particularly in operating activities, and its potential uses for investments or returning capital to shareholders.

Dividend Yield: Learn how TCS’s history of dividend yields has provided attractive returns to income-focused investors.

FAQs About TCS Stock :

When will TCS announce its upcoming dividend for 2023-24?

TCS is scheduled to announce its dividend on October 11, 2023.

What is the significance of the Record Date for TCS’s upcoming dividend?

The Record Date for the dividend is October 19, 2023, and it’s important because shareholders must own the stock by this date to be eligible for the dividend.

How has TCS’s financial performance been in the first quarter of FY 2023?

In Q1, TCS achieved impressive results, including a 17% YoY increase in net profit and a 13% YoY growth in consolidated revenue.

What are the key financial ratios indicating TCS’s financial strength?

TCS boasts strong financial ratios, such as a Return on Equity (ROE) of 46.61%, a Return on Capital Employed (ROCE) of 57.63%, and an EBITDA Margin of 27.81%.

What is the shareholding pattern for TCS, and how does it reflect investor confidence?

TCS has a robust shareholding pattern, with promoters holding 72.30% of the company’s shares, foreign institutional investors (FIIs) at 12.46%, and domestic institutional investors (DIIs) at 9.75%, reflecting strong investor confidence.

What is the current stock price of Tata Consultancy Services (TCS) ?

As of September 29, 2023, the current stock price of TCS on NSE was ₹3,528.60, while on BSE, it was ₹3,530.75.

What factors contribute to TCS’s attractive valuation, as indicated by the Price-to-Earnings (P/E) and Price-to-Book (P/B) ratios?

TCS’s attractive valuation is influenced by its strong financial performance, global presence, and position in the IT Software sector, which is known for its growth potential in the digital age. These factors make TCS stock appealing to value investors.

Disclaimer:

The information provided in this blog is for general informational purposes only and should not be considered as professional financial or investment advice. Always conduct thorough research and seek advice from a qualified financial advisor before making any investment decisions. The blog author and publisher are not responsible for any actions taken based on the information provided in this blog. Any reliance on the content is at your own risk. Remember that the financial markets can be volatile, and past performance is not indicative of ture results. The company mentioned in the blog may have undergone changes or developments that are not reflected here. Please verify the information with credible sources before making any financial decisions.

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