Chart of the week. TCS.
TCS has made its all time high of in Sept 21. It has corrected since then around 26% due to several global factors. And this week, it has again given breakout above its all time high. When it comes to Large cap IT, TCS is no brainer. This stock should be there in everyone's portfolio. Some stocks are not meant for technical analysis due to its fundamental structure and this stock is one of them.
PROS of TCS
Company is almost debt free.
Company has a good return on equity (ROE) track record: 3 Years ROE 43.3%
Company has been maintaining a healthy dividend payout of 61.4%
Company's working capital requirements have reduced from 43.6 days to 32.8 days.
CONS
Stock is trading at 15.0 times its book value.
This stock will now trade under blue sky hence there will be no upper limit. NASDAQ, on the other hand has also given breakout above its all time high so global IT index should perform well henceforth. Therefore, TCS is worth of a trade. An investor should either keep no stoploss and buy in small quantities on each dip or leniently follow given stoploss and take trade.
CMP - 4133 (10/2/24)
T - 4600, 5600
SL - 3800 W
PROS of TCS
Company is almost debt free.
Company has a good return on equity (ROE) track record: 3 Years ROE 43.3%
Company has been maintaining a healthy dividend payout of 61.4%
Company's working capital requirements have reduced from 43.6 days to 32.8 days.
CONS
Stock is trading at 15.0 times its book value.
This stock will now trade under blue sky hence there will be no upper limit. NASDAQ, on the other hand has also given breakout above its all time high so global IT index should perform well henceforth. Therefore, TCS is worth of a trade. An investor should either keep no stoploss and buy in small quantities on each dip or leniently follow given stoploss and take trade.
CMP - 4133 (10/2/24)
T - 4600, 5600
SL - 3800 W
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