TCS Ltd. – Riding the Wave from a Strong Support Base📊Technical Overview
TCS has consistently traded above ₹3,000 since 2021, with this level serving repeatedly as a robust support zone.
The stock reached an all-time high of ₹4,592 in August 2024.
Given strong year-on-year financial performance and support at ₹3,000, TCS currently trades at ₹3,500.
As long as the ₹2,900–₹3,050 support zone holds, the stock has potential to rise to:
🎯Target 1: ₹3,800
🎯Target 2: ₹4,200
🎯Target 3: ₹4,600(All-time high)
A breakdown below the zone would negate the bullish thesis.
💰FY24 Key Financial Highlights (vs FY23 & FY22)
Total Income: ₹255,324 Cr (vs ₹240,893 Cr; ₹225,458 Cr)
Total Expenses: ₹187,917 Cr (vs ₹176,597 Cr; ₹166,199 Cr)
Financing Profit: ₹67,407 Cr (vs ₹64,296 Cr; ₹59,259 Cr)
Profit Before Tax: ₹65,331 Cr (vs ₹61,997 Cr; ₹56,907 Cr)
Profit After Tax: ₹48,797 Cr (vs ₹46,099 Cr; ₹42,303 Cr)
Diluted Normalized EPS: ₹134.20 (vs ₹126.88; ₹115.19)
All parameters show strong YoY growth, emphasizing TCS’s consistent scale-up and profitability.
🧠Fundamental Insights
TCS crossed $30 bn in annual revenue, with a strong order book of $42.7 bn, including a record Q4 TCV of $13.2 bn
FY24 revenue rose 4.1% YoY (CC +3.4%), with net income up 7.8% YoY. Q4 margins were strong with operating at 24.6% and net at 19.3%
TCS declared a ₹30 final dividend and a combined FY25 dividend of ₹96/share (₹66 special + ₹30 final), rewarding shareholders with ~4.5% yield
Quarterly profit slipped 1.7% YoY to ₹12,224 Cr due to global headwinds, but revenue still rose 5.3%, backed by strong deal wins worth $12.2 bn (Q4) and $39.4 bn (full year) .
Continued investment in AI, digital innovation, and a strong cash flow (over $5.3 bn free cash flow in FY24) support long-term growth outlook .
🧭Conclusion
TCS remains fundamentally strong with robust growth in revenues, profits, and cash generation. Technically, it is maintaining a firm base above ₹3,000, setting the stage for a potential upside toward ₹3,800 → ₹4,200 → ₹4,600. The key is to watch for sustained support at ₹3,000–₹3,050.
Disclaimer: lnkd.in
