Tata Consultancy Services’ (TCS) share price fell over 1% on Thursday (20 January), the record date of the dividend which is to be paid on 7 February to the equity shareholders of the company. The IT major announced an interim dividend of Rs 7 per equity share on 12 January along with financial results for third quarter of FY22. Earlier, the company had announced an interim dividend of Rs 7 per equity share in the first quarter, and Rs 7 per equity share in the second quarter as well. TCS shares today fell over 1% to intraday low of Rs 3,862.50 on the Bombay Stock exchange.
TCS share price:
TCS stock has rallied over 9% in the last 1 month, and over 21% in the last six months. Over a period of 12 months, TCS share price has gone up nearly 18%. So far this year, the stock has risen 1.64% despite the recent correction. Overall in the past five years, TCS share price has surged around 240%. In the October-December quarter of FY 2021, TCS shares fell 1.11%. In comparison, the Nifty 50 index declined 1.01% during the quarter under review.The share touched its 52-week high Rs 4,045.50 on 18 January, and 52-week low Rs 2,701.00 on 24 February, 2021.
ICICI Securities: BUY
Target price: Rs 4,600
Tata Consultancy Services (TCS) is one of the leading IT service providers with a presence in BFSI, communication, manufacturing, retail & hi tech. The company has reported consistent organic revenue growth and industry leading margins, It also has stable management, robust return ratios & payouts, said ICICI Securities in its report. “TCS’ share price has grown by 3.9x over the past five years (from Rs 1,018 in January 2017 to Rs 3,965 levels in January 2022). We continue to remain positive and retain our BUY rating on the stock. We value TCS at Rs 4,600 i.e. 34x P/E on FY24E EPS,” it said.
TCS share buyback
Along with Q3FY22 results and interim dividend, Tata Consultancy Services (TCS) had also announced a Rs 18,000-crore share buyback by offering shareholders Rs 4,500 per share. This buyback is 1.08% of the total company shares. This is TCS’ fourth and the biggest buyback exercise in the past five years. “The buyback is proposed to be made from the shareholders of the Company on a proportionate basis under the tender offer route using the stock exchange mechanism. The buyback size does not include transaction costs, applicable taxes and other incidental and related expenses,” TCS has said in a statement on the outcome of the board meeting. The company has set 20 January (today) as the Record Date. Shareholders are required to hold shares of the company concerned in their demat account on this date.