TCS Share Price: Tata Consultancy Services (TCS) is not only the flagship company but also the largest stock backed by Tata Group in terms of market value. TCS, the second largest company in India, fell sharply by 4% after Trump's reciprocal tariffs were announced. The USA is a key market of growth for TCS. This Tata stock is going to be in focus ahead due to its Q4 results and final dividend announcement for FY25.
TCS Share Price:
After market hours of April 3rd, TCS share price closed at Rs 3403.90 apiece on BSE, down by 3.98% with a market cap of Rs 12,31,560.81 crore. Despite the latest decline, TCS is still the second largest company in India, but the largest tech giant and largest Tata company too.
The heavyweight stock took a beating from bears after experts predicted that deterioration in the macro environment could weigh down on tech companies' Q4 FY25 results and FY26 guidance. Brokerage Kotak predicts weak numbers of tech biggies like TCS in the fourth quarter.
TCS Q4 Results Date:
TCS has announced that a meeting of the Board of Directors is scheduled for Thursday, April 10, 2025.
During the meeting, the board will consider and approve the audited standalone financial results of the Company under Indian Accounting Standards (Ind AS) for the financial year ending March 31, 2025.
Also, consolidated financial results will be announced that day.
TCS Q4 Results Preview:
Brokerage Kotak Institutional Equities is predicting flat revenues in c/c for the international business and a US$30 million decline in BSNL revenues. The net result is a 0.3% decline in revenues in constant currency. Also, the brokerage expects steady deal wins of US$11 billion but would be down from US$13.2 billion last year, which included certain large renewals.
Further, Kotak added, that the benefit of rupee depreciation will be eaten away by promotions and investments in business, resulting in disappointing margin performance. However, the focus will be on reasons for the struggle for growth in international business, which has been insipid due to ramp-downs and modest deal wins.
What Should Investors Expect From TCS' Q4?
According to Kotak, investors should focus on: (1) the impact of tariffs and the recent chain of macro deterioration in the US on business and outlook for FY2026, (2) reasons for underperformance in growth in developed markets, (3) any projects cancellations or delays since January 2025 and its impact on FY2026 growth outlook, (4) outlook in financial services vertical and any loss of share to insourcing at large clients, (5) state of spending in the UK & Europe markets and signs of improvement in demand, (6) the impact of GCC ramp-up on the growth of companies and (7) levers to defend and increase margins.
TCS Dividend:
In its regulatory filing, TCS also informed that on April 10th, its board will also recommend a final dividend, if any, on the equity shares of the Company for the financial year ending March 31, 2025, for the approval of the shareholders at the ensuing 30th Annual General Meeting.
TCS is a dividend king stock. Since October 2004, the company has distributed up to 88 dividends, as per Trendlyne data. In the last 12 months, the dividend payout was a whopping Rs 124 per share. At the current market price TCS has a dividend yield of 3.64%.
Unlike dividends, TCS has never carried a stock split but holds records of bonus issuance. TCS rewarded investors bonus shares of 1:1 each in July 2006, June 2009 and May 2018. However, that does not make TCS a bonus king stock, compared to its peers like Wipro who have rewarded more bonus shares. But TCS is definitely among the leaders in dividend rewards in IT sector.
BUY TCS Stock?
Kotak has recommended BUY on TCS ahead of its Q4 results, with a target price of Rs 4,100 per share. As per Trendline, the consensus recommendation from 42 analysts for Tata Consultancy Services Ltd. is BUY. Of the total consensus, 16 experts recommend STRONG BUY, and 11 analysts give BUY recommendation on TCS. The average predicted target price for TCS is Rs 4266.14, which signals over 25% potential upside from current levels.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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