Best Stock to buy in 2022 Bear Market - TCS

-
  Best time to buy a stock ? Well what better than a recession when even the best in the business is available at a steep discount ! TCS is my 1st choice at the moment. Why ? Well, following points speak for itself (1) 2nd Largest IT company in the world with no worry of future business. (2) Largest company of Tata Group which is the largest business group of India.         App. 70 % of profit of  Tata group come from this single company. (3) Continuously growing top line and bottom line of business (4) Available at reasonable valuation with PE multiple of 29 (5) Regular buy back ensures value addition for share holders (6) Major company in both Sensex & Nifty and hence bought by both Indian as           well as Overseas investor. When FII will come back, they buy blue chip shares       like TCS first. (7) Operational for more than 5 decades now with consistent performance track         record.  (8) Need for IT solution across globe will only increase from here which will         
एक टिप्पणी भेजें

TCS- Q3 Results (Oct'20-Dec'20) Tata Consultancy Services Quarter 3 result FY21

-

 


Tata Consultancy Services (TCS) has declared its Q3 results today as following. Company has declared third interim dividend of Rs.6 per share with Face value of Rs.1 Record date  is 16th January, 2021 and disbursement date is 3rd February, 2021.




Highlights of Q3 is as follows.

• Revenue at ~42,015 crore, +4.7% QoQ, +5.4% YoY
• Constant Currency revenue growth: +4.1% QoQ, +0.4% YoY
• Net Income at '8,701 crore, +3.2% QoQ, +7.3% YoY
• Operating Margin at 26.6%; Net Margin at 20.7%
• Strong Cash Conversion: Net Cash from Operations at ,11,952 crore I 137.4% of Net Profit
• Consolidated headcount: 469,261 I Net addition: 15,721 I Women in the workforce: 36.4%
• 366K+ employees trained in new technologies; 444K+ on Agile methods
• IT Services attrition rate dips to a new all-time low, at 7.6% LTM
• Interim Dividend per share: ~6.00 I Record date 16/01/2021 I Payment date 03/02/2021

  • Strong Demand Drives TCS Q3 Growth Momentum
  • Strongest Third Qtr Growth in 9 yrs: +4.1% QoQ CC, +4.7% INR, +5.1% USO
  • Back to Positive YoY Growth: +0.4% CC, +5.4% INR, +2.1% USO
  • Operating Margin: 26.6%, +0.4% QoQ and +1.6% YoY
  • Net Profit Growth +7.2% YoY
  • Lowest Ever Employee Attrition in IT Services (LTM): 7.6%

Consolidated results are follows.


Summary is as follows.


Total income has increased by 4% on QOQ & 5 % on YOY basis. Expenses have increased by 4% & 3% respectively. Gross profit has increased by 16 % & 11% which is really Good. Net Profit/EPS has increased by 16 % & 7 % respectively.  Figures are robust and shows good governance and recovery of economy post covid-19.

As shown in following chart, Banking, Financial service and Insurance continuos to be the largest source of revenue & profit with 16,655 crore contribution in revenue and 4,807 crore contribution in gross profit. Manufacturing, retail and consumer business, communication media & Techanology all have contributed well. There is improvmenet in all these areas over last quarter as well as last year despite pendemic.


Shares Byback was announced on October 7, 2020, approved a proposal to buy-back upto 5,33,33,333 equity shares of the Company for an aggregate amount not exceeding 6,000 crore, being 1.42% of the total paid up equity share capital at Rs. 3,000 per equity share. The shareholders approved the same on November 18, 2020. The period for tendering of shares for buy-back was from December 18, 2020 to January 1, 2021. The settlement of all valid bids was completed on January 5, 2021, and the equity shares bought back were extinguished on January 6, 2021.

This stock has has shown tremendous returns to its share holder as shown in following chart. With CAGR of 21 %, 26 times return has been received in 17 years. Dividend income is seperate.



Higher PE & PB ratio shows the confiednce of the market in the stock. 2.34 % divident yield is also good. Higly recommended for long term investment but currently level seems overpriced. 


To view Q3 result pdf file click on following link

https://www.bseindia.com/xml-data/corpfiling/AttachLive/0f58c131-c858-49a2-940c-6dc37ae935df.pdf

 

Thank you.

Jai Hind.

टिप्पणियाँ

एक टिप्पणी भेजें

इस ब्लॉग से लोकप्रिय पोस्ट

Dmart Results - Q3 FY21(Avenue Supermart)

-
चित्र
  Retail Gian Dmart (Avenue Supermart) has just released Q3 figures and as expected these are superb ! Consolidated result is as follows. Summary of the results is as following. Total Income increased substantially by 42 % & 11 % on QOQ & YOY basis respectively. Gross profit increased by 124 % & 24 % while Net profit/EPS increased by 125 % & 12 % substantially. This stock has already given 10 times return to its IPO subscribers who have hold the stock till date. 10 times return in 3 years , 9 months is simply superb !  As shown above, TTM EPS is 13.80 ( Excluding Q3 figures) & hence PE ratio of Friday closing price is 215 times which probably is highest among major listed companies. This shows faith of investors in this company and its promoter Mr. Radhakishan Damani.  Clikc on following link to go through the pdf file of Q3 as submitted to exchanges. https://www.bseindia.com/xml-data/corpfiling/AttachLive/eb8f954e-2780-4aad-a6d8-85973a32fd16.pdf Thank you. Jai Hind
और पढ़ें

High Dividend Paying Stocks in India - PART 1

-
चित्र
Who likes to have lucrative dividend income in bank account ? well all of us like the dividend income. How many companies in your portfolio give regular dividend? Very few ??? If so, don't you think it's time to correct your portfolio. Advantages of of regular dividend paying companies are as following. (1) Good companies pay dividend in the range of of 1 % to 15% on annual basis. Now this is a huge amount. Most of the mutual funds are giving approximately 10% return on annual basis. If if your company is giving even 10% dividend, it's a huge bonus since appreciation of stock value is entirely different. (2) regular dividend itself is a proof of good business management. Without continuous profit, continuous dividend is not possible. This itself is a proof that you are invested in the right company. (3) most of the high paying dividend companies are owned by government & hence there is always a sense of security. (4) sometimes market remains depressed for months or eve
और पढ़ें

Nifty PE ratio at all time high at 40. sensex about to touch 50,000 mark

-
चित्र
Sensex is about to touch 50,000 levels. PE ratio of nifty is about to touch 40 level. This highest peak level itself suggest that market is highly overpriced and is bound to correct very soon. please refer following chart. It is highly recommended that and long time investor should stay absolutely away from market right now. There is no by opportunity as such and if at all you have some plan to book profit probably this is the right time before market corrects itself so good luck friends thank you.
और पढ़ें