TCS - Experience certainty.
Printed From: The Equity Desk
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Forum Name: Large Cap Blue Chips
Forum Discription: You would not need to read any note, brokerage reports or wait for FII recommendation to buy these stocks. These are solid companies with established business & are akin to family silver.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=3525
Printed Date: 26/Jun/2024 at 2:23pm
Topic: TCS - Experience certainty.
Posted By: shontou
Subject: TCS - Experience certainty.
Date Posted: 18/Jan/2012 at 8:36am
Conference Call
TCS
Out of 130 discretionary projects company is pursuing, 50% are facing delay in decision making but there are no project cancellations
TCS held a conference call to discuss the results for the Q2 FY12. N. Chandrasekaran, CEO and MD, S. Mahalingam, CFO, Phiroz Vandrevela, ED & Head, Global Corporate Affairs and Ajoy Mukherjee, VP & Head, Global HR addressed the call.
Revenues grew 4.5% q-o-q in constant currency to $ 2.64 billion in Q2 FY12. The increase in revenues was supported by 3.2% growth in volume, 198bps forex benefit while negatively impacted by 64bps due to offshore shift. There was negative impact of 2.1% on account of cross currency.
At the EBIT level, currency had impact of +282bps, GDC -10bps, rate productivity -94bps, provision for bad debt -10bps and others +45bps, totaling +213bps to 29.2%.
NIM improved by 90bps to 21.9%.
Pricing is expected to be stable.
Out of 120 top clients surveyed who have finalized budgets, two-thirds have flat or marginally increased budgets and remaining one-thirds has reduced budgets.
Out of 130 discretionary projects company is pursuing, 50% are facing delay in decision making but there are no project cancellations.
The pipeline is intact but discretionary spend may lag ramp up in volumes in Q4.
The company signed large 10 deals during the quarter, 2 each in Retail and Banking and 1 each in telecom, Insurance, Hi-tech, E&U and Lifesciences. Geographically, 3 in North America, 4 in UK/Europe and 2 in APAC.
Revenue hedges stand at $1.7 billion of which $1.3 billion are for Q4 and receivable hedges at $ 1.1 billion.
Discretionary revenues stand at 20% to 25% of overall revenues.
Tax rate was 22.6%.
DSO stood at 81 days and cash and cash equivalents at Rs 96.8 billion.
The management has made offers to 43600 campus graduates and expects to hire 15000 professionals in Q4FY12.
The management is comfortable at a utilization rate of 82-84% excluding trainees.
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Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
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Replies:
Posted By: TCSer
Date Posted: 18/Jan/2012 at 8:54am
Market is still huge for TCS & competitive ability still exists implying stay invested for long term.
This has been mine best investment multiplying 6 times in last 7 years.A simple case of compounding for a secular growth story.
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
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Posted By: studentoflife
Date Posted: 19/Jan/2012 at 9:19pm
What TCS does is beyond the obvious ,so you are going to experience uncertainty
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First step towards learning is the realization that you do not know anything.
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Posted By: TCSer
Date Posted: 19/Jan/2012 at 9:21am
Lets have a 2-3 years view at least for next these large IT cos.For any FII to invest in India these cos automatically become a good choice because of high demand in west,high corp governance,zero debt,levers on cost like variable salary,play on demography.
No wonder WB made a recent entry in IBM.One will see increased usage of computers in all aspects of life.s
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
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Posted By: jayakrishnan
Date Posted: 19/Jan/2012 at 9:46am
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this was my first stock bought through IPO under employee category and made good profit and exited...now accumulating again...this CEO is very aggressive...
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Posted By: TCSer
Date Posted: 22/Jan/2012 at 11:36pm
An outstanding story.America simply does not produces relevant engineers.So outsourcing story will remain strong for long time.
http://www.nytimes.com/2012/01/22/business/apple-america-and-a-squeezed-middle-class.html?pagewanted=7&_r=1&ref=global
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
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Posted By: TCSer
Date Posted: 24/Jan/2012 at 8:26pm
TCS (TCS)
Technology
Key takeaways from post-3QFY12 fund manager meet. We hosted TCS’ post-
3QFY12 fund manager meet. Management categorically stated that its 3QFY12
earnings call commentary on delays in some discretionary project starts should not be
construed as an indicator of a structural slowdown or a weak FY2013E. Among other
takeaways – (1) no slowdown indicators in the BFSI vertical, (2) situation today is
markedly different from post-Lehman scenario at end-CY2008 and not too different
from end-CY2009 and end-CY2010 barring some increased due diligence on
discretionary projects, and (3) offshoring acceptance in EU has increased substantially.
Management commentary reassuring on demand environment
Key highlights from TCS’ post-3QFY12 fund manager meet
�� Demand environment healthy. TCS management indicated that 3QFY12 earnings call
commentary on budgets, select discretionary project delays, and 4QFY12 volume growth
expectation moderation should not be construed as an indicator of weakness in demand
environment that continues to be healthy. It also stated that its base plan for FY2013E is an
‘aggressive growth’ plan, without quantifying what ‘aggressive’ implies.
�� 4QFY12E would be a growth quarter. The company has seen select delays in discretionary
project starts that impacted 3QFY12 volume growth and may impact 4QFY12E as well.
However, the company has seen no project cancellations or ramp-downs and remains confident
of improvement in growth rates beyond 4QFY12E. That said, TCS indicated that 4QFY12E
would be a growth quarter.
�� No slowdown in BFSI vertical. Responding to specific questions on BFSI vertical outlook,
management indicated that it has not seen any slowdown in any of the sub-segments within
this vertical. That several of its top accounts are from the BFSI vertical may mean that BFSI
grows slower than the corporate average, but the company has seen no negative data points to
suggest that this would necessarily be the case.
�� Situation not meaningfully different from end-CY2009 and end-CY2010. Barring
increased due diligence on discretionary projects, TCS sees no meaningful change in demand
environment today as compared to the same time the past two years. The company also
cautioned against drawing parallels to the post-Lehman demand scenario stating that the
situation is markedly different. Clients had absolutely no clarity on the shape of things to come
then but are much more aware of the macro realities today.
�� TCS indicated that it continues to remain averse to capital-intensive asset-takeover deals.
�� The company sees tremendous mining potential within its existing set of accounts and
continues to see this as the key driver of growth in the medium term.
�� TCS remains committed to platform investments citing them as a key tenet of their
growth strategy.
�� TCS has seen substantial improvement in the clients’ attitude towards offshoring in
Europe in recent years. The company is getting invited to increasing number of RFPs in
this geography and expects the traction to continue.
�� TCS attributed the yoy decline in OCF and FCF in 9MFY12 versus 9MFY11 to increase in
tax payments (as STPI benefits have phased out) and increased working capital
requirements. The company maintained that it is comfortable with the quality of its cash
flow generation.
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
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Posted By: ameydesai
Date Posted: 05/Apr/2012 at 1:33pm
Originally posted by TCSer
TCS (TCS)
Technology
Key takeaways from post-3QFY12 fund manager meet. We hosted TCS’ post-
3QFY12 fund manager meet. Management categorically stated that its 3QFY12
earnings call commentary on delays in some discretionary project starts should not be
construed as an indicator of a structural slowdown or a weak FY2013E. |
from Aug-2011to Nov-2011 - i had a chance to work in TCS-BPO campus & one thing i know for certain - they know how to generate revenue - year on year, quarter on quarter.
They offer process outsourcing as well as technology platforms as a bundle - this is increasingly getting popular with a lot of clients globally. Customers have started understanding that process outsourcing alone cannot take you far - with bundling of technology it becomes a lumpsum turn-key kind of contract which yields a lot of stability to service provider and an equal accountability on his part.
With regards to software & IT services - they already are the biggest Indian IT company and more interestingly they are still growing fast enough.
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Arise, Awake and Stop Not till the Goal is reached
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Posted By: studentoflife
Date Posted: 06/Apr/2012 at 5:35pm
With more focus given to the near shore model compared to the onsite offshore model for major accounts ...attrition rates might become unsustainable.Also the pay packets demanded at offshore will increase since the resources from 2 - 7 yrs will not get enough onsite opportunities.
Also big vendors like GE have put more focus on insourcing ...by sending orders to their captive units rather than outsourcing.These units pay hefty pay packets.
Also Accenture ,IBM and Cap gemini also now have fully mature and large offshore capabilities,which was not the case few years back.
So we cannot be sure.....TCS is not disclosing things which are beyond the obvious ,thus all investors can experience uncertainty in the future.
Also unethical practices such as pocketing employee tax refunds in USA does not provide a very comfortable feeling.
Where TCS seems to be ahead of the crowd is Indian projects and the Small and Medium scale (c l o u d computing)projects.
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First step towards learning is the realization that you do not know anything.
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Posted By: ameydesai
Date Posted: 11/Apr/2012 at 7:10pm
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when is the earnings call for Q4?
What are the conference call details for TCS?
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Arise, Awake and Stop Not till the Goal is reached
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Posted By: TCSer
Date Posted: 11/Apr/2012 at 11:46am
Indian cos IMHO have still only scratched the surface of global IT requirement. The IT usage is increasing every passing day due to c****,mobility n social media,consumerization of IT.Its not a complex story rather a direct play on demographic dividend.No wonder warren Buffet for first time took a bet on IT by buying into IBM.Stay invested n enjoy the fruits.
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
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Posted By: studentoflife
Date Posted: 12/Apr/2012 at 1:01pm
http://www.hindustantimes.com/business-news/CorporateNews/Infosys-TCS-to-feel-the-heat-of-competition/Article1-839353.aspx - http://www.hindustantimes.com/business-news/CorporateNews/Infosys-TCS-to-feel-the-heat-of-competition/Article1-839353.aspx
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First step towards learning is the realization that you do not know anything.
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Posted By: shontou
Date Posted: 24/Apr/2012 at 9:50pm
Conference Call
TCS
There is a much better visibility now than last quarter
TCS held a conference call to discuss the results for the Q4 FY12. N. Chandrasekaran, CEO and MD, S. Mahalingam, CFO, Phiroz Vandrevela, ED & Head, Global Corporate Affairs and Ajoy Mukherjee, VP & Head, Global HR addressed the call.
Revenues grew 2.3% q-o-q in constant currency during Q4 FY12. Rupee revenues growth of 0.4% came from volume growth of 3.3%, constant currency realization decline of 97bps and currency impact of negative 1.87%. FY13 revenue growth of 31% came from 23% volume growth, constant currency realization increase of 1.13%, currency impact of positive 7.99% and effort mix had negative impact of 1.17%.
Q4 EBIT decline of 155bps to 27.7% was due to currency (-71bps), productivity improvement (+36bps) and S, G&A (-120bps). FY12 EBIT decline of 44bps to 27.6% was due to currency (+218bps), productivity improvement (+133bps), wage hike (-289bps) and S, G&A (-106bps).
Europe declined due to strong Q2 and Q3 and will do well from here onwards.
BFSI was flat in Q4 but pipeline is good, 3 deals have been signed which are all annuity and revenues will grow from current levels.
Deal signing is good, deal pipeline is healthy and order book is good.
FY12 volumes grew 23% and pricing improved by 1.3%.
Employees have been given an average 8% hike across board in India, 6-8% in developing countries and developing markets and 2-4% average in developed markets. The company has paid 100% of variable pay.
On the demand outlook, US is looking better with projects coming and ramp ups happening.
Telecom is expected to be good in FY13.
The management continues to maintain margins aspiration at 27% at a currency assumption of 48.
There is a much better feel on visibility than last quarter.
Pricing is expected to be stable.
DSO improved by 1 day in dollar terms to 81 days in FY12.
Tax rate is expected to increase slightly in FY13 and decline thereafter.
Utilization levels are expected to improve.
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Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
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Posted By: shontou
Date Posted: 13/Jul/2012 at 11:36pm
Conference Call
TCS
Deal pipeline is healthy and management continue to see opportunities
TCS held a conference call to discuss the results for the Q1 FY13. N. Chandrasekaran, CEO and MD, S. Mahalingam, CFO, Phiroz Vandrevela, ED & Head, Global Corporate Affairs and Ajoy Mukherjee, VP & Head, Global HR addressed the call.
Revenues grew 4% q-o-q in constant currency during the quarter. Rupee revenues growth of 12.1% came from volume growth of 5.34%, constant currency realization decline of 106bps and currency impact of positive 8.13% and effort mix had negative impact of 27bps.
EBIT decline of 20bps to 27.5% was due to currency (+276bps), wage increase (-200bps), productivity (-117bps), S, G&A (+18bps) and offshore shift (+3bps).
The management maintained its stance of growing above NASSCOM's estimate for FY13.
The management continues to see opportunities, there is no change in competition profile. Europe is seeing some good deal closures and similarly Telecom.
The management is seeing significant demand in new technologies like Mobility, Analytics, Social Media and c****.
Deal pipeline is healthy and closure rates are normal. 8 new deals were closed during the quarter of which 3 were from BFSI, 2 from retail and 1 each from Pharma, Media and Telecom and geography wise, 4 were from US, 1 each from UK, Continental Europe, APAC and MEA.
The company signed a $100 M+ contract with a leading North American retailer as its transformation partner.
Platforms business may cross $500 million in revenues.
Macro environment continues to the same as compared to last quarter and the clients have now adjusted themselves to this situation.
Pricing is expected to be stable and there is no risk.
India business has seen some volatility and delays.
DSO stood at 80 days in dollar terms.
Cash position stood at Rs 130.2 billion.
Hiring guidance of 50K for FY13 is unchanged.
Employees have been given an average 8% hike across board in India and 2-4% average in developed markets.
There is nothing specific to company on in-sourcing.
Insurance will do well for the rest of year as per pipeline.
Utilization levels are expected to improve and management endeavors to maintain it at 82-83% excluding trainees.
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Every day, self-proclaimed stock market "experts" tell us why the market just went up or down, as if they really knew. So where were they yesterday?
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Posted By: ameydesai
Date Posted: 02/Oct/2012 at 1:55pm
is TCS worth buying just after infosys results?
my logic - they both fall after results and then TCS posts better results - thats how it has happened for last few quarters
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Arise, Awake and Stop Not till the Goal is reached
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Posted By: Shiv R
Date Posted: 16/Oct/2012 at 10:53am
Lets see how it goes tomorrow, as TCS will report it's Q2 results...
The stock is trending south since yesterday!
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Posted By: ameydesai
Date Posted: 19/Oct/2012 at 12:37pm
Originally posted by Shiv R
Lets see how it goes tomorrow, as TCS will report it's Q2 results...The stock is trending south since yesterday!
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my guess is the results will just be as per market estimates - not too good not too bad either
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Arise, Awake and Stop Not till the Goal is reached
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Posted By: rohit1889
Date Posted: 19/Oct/2012 at 12:05pm
Originally posted by ameydesai
Originally posted by Shiv R
Lets see how it goes tomorrow, as TCS will report it's Q2 results...The stock is trending south since yesterday!
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my guess is the results will just be as per market estimates - not too good not too bad either |
http://www.moneycontrol.com/news/results/tcs-tops-expectations44-yoy-riseq2-net-profit_771332.html#toptag
TCS tops expectations with 44% YoY rise in Q2 net profit
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If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.
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Posted By: FutureBull
Date Posted: 20/Oct/2012 at 1:00pm
I have been telling since long time now that HCL and TCS are best bet in IT for now. These two have made heavy investments in IP, people and processes. Just two yrs back these two were under performing now outperforming INFY. When INFY has already started taking right steps (mgmt changes etc) and investments, analysts would write obituary for the stock. Analysts are anaylyst, they can't stop looking backwards.
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‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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Posted By: manish_okhade
Date Posted: 20/Oct/2012 at 5:42pm
Futurebull,
What makes sense - riding the proven story or buy the story which is on the way to change [INFY]?
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Posted By: FutureBull
Date Posted: 20/Oct/2012 at 7:51pm
I think better to ride the story if one is doing it already but time to switch is coming close. You would notice that INFY rallies before qtrly results in anticipation of turnaround. If it happens in any of the results, it would rally hard and would not give much time to enter. I would use any significant weakness in Infy to keep building positions over next 3-4 quarters. I do not hold any of these stocks. I happen to dislike all of the current bunch of promoters on Infy's board. Had they been regular employees, they would not have come close to the positions they hold today. This would give pain for few more quarters at least.
The reason for my optimism is that now they are backing their strategy with actions. They wanted to maintain margins but where are the offerings, so they acquired high end consulting firm. Mind boggling decision of holding back wage increments (as if they operate in vacuum) for employees was reversed too. I guess things are getting better on the margin.
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‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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Posted By: rohit1889
Date Posted: 20/Oct/2012 at 11:47pm
http://www.moneycontrol.com/news/market-edge/q2fy13-results-how-do-infy-tcs-hcl-tech39s-numbers-stack-up_771482.html#toptag
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If you're prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won't get bored.
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Posted By: manish_okhade
Date Posted: 20/Oct/2012 at 10:27am
Originally posted by FutureBull
I think better to ride the story if one is doing it already but time to switch is coming close. You would notice that INFY rallies before qtrly results in anticipation of turnaround. If it happens in any of the results, it would rally hard and would not give much time to enter. I would use any significant weakness in Infy to keep building positions over next 3-4 quarters. I do not hold any of these stocks. I happen to dislike all of the current bunch of promoters on Infy's board. Had they been regular employees, they would not have come close to the positions they hold today. This would give pain for few more quarters at least.
The reason for my optimism is that now they are backing their strategy with actions. They wanted to maintain margins but where are the offerings, so they acquired high end consulting firm. Mind boggling decision of holding back wage increments (as if they operate in vacuum) for employees was reversed too. I guess things are getting better on the margin. |
Right, i am already invested when stock was crushed and will accumulate further when it goes weak and below forward PE of 11-12. Such opportunities are coming from time to time. Reasoning is simple here -
1) INFY is a resilient company so it will take time but recover from current lethargy.
2) Current problems are solvable, Brand is intact and demand will always be there for all dirty work which INFY does.
3) 18K Cr cash and dividend protects too much downside below PE of 11-12
My expectations are simple, i am looking for 20+% compounder here in long haul with limited downside.
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Posted By: koolvalue
Date Posted: 20/Oct/2012 at 11:31am
manish sir,
Laws and grounds of the game change very fast in business
and faster in IT. It is very clear that business models of
major IT companies are not suited for prolonged years of
moderate growth in business opportunity.22000 crs which infy has on books may well be spent on salary hikes of employees rather than getting utilised for creating business opportunity.I really doubt that Infy or TCS will
be 20% compunders on longer term basis.
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Posted By: manish_okhade
Date Posted: 21/Oct/2012 at 2:55pm
Originally posted by koolvalue
manish sir,
I really doubt that Infy or TCS will
be 20% compunders on longer term basis. |
You really have a good argument. But let me try to invert it. If INFY/TCS etc have matured and they can no longer be 20% compounder.
When this concept is extrapolated so it says that never invest in any business which is large cap and matures so if thats the case then why large cap should be a large cap at all! All of them should collapse.
You are right here, IT Companies are still basking in their past glory, they have yet to accept the new facta and they will learn it sooner or later. Large cap grows because they learn the lesson and come out of their past glory and once this happens then they use their cash, brand etc to leverage on new stretegy and find new market for growth. Thats what we are hoping for IT biggies.
Investing in INFY is a patient exercise, not suitable for those who are looking for QoQ thrill.
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Posted By: FutureBull
Date Posted: 21/Oct/2012 at 6:31pm
Peter Lynch had outlined strategy for stalwarts. Buy when they get into some kind of temporary problems
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‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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Posted By: koolvalue
Date Posted: 21/Oct/2012 at 7:40pm
Originally posted by FutureBull
Peter Lynch had outlined strategy for stalwarts. Buy when they get into some kind of temporary problems |
Futurebull sir,
I have read Lynch again and again and tried to get in mindset of Lynch. Lynch basically classified companies in
two categories
1)One who do direct business with retail customers/consumers.
2)One who do business with first set of companies.
He found out that it is impossible for second set of companies to outprofit first set of companies and broadly
took bets in first group.When he means stalwarts they are
coka cola,pepsi,lever,p&g,netsle,volvo etc.He never made
money in tech infact he managed to loose some money in IBM.When IBM was weighing 4% in index he had only 2% in his fund.
Manish Sir,
TCS and Infy (belong to group two) depend upon good and favourable macro and micro factors (both domestic and overseas) to succeed.If
so many variables to become favourable then it is obvious that any consumption theme will easily outprofit them and
will give better compounding.
Why they are large cap because for certain overseas fund
managers it is easier to loose money on infy and tcs if
India bet turns bad.(atleast they do not loose their jobs).But in our case we are investing our own money so why settle for inferior returns when better opportunities
are available.
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Posted By: manish_okhade
Date Posted: 21/Oct/2012 at 8:53pm
Koolvalue,
One needs to think that whether INFY can trade at PE of single digit. If analysis says yes then better not invest or otherwise. INFY is a brand which is still intact, problems are internal which may get resolves over a period of time. This is the hypothesis for investment, of course if it goes wrong then we would be losing our money.
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Posted By: manish_okhade
Date Posted: 21/Oct/2012 at 8:56pm
Originally posted by manish_okhade
Koolvalue,
One needs to think that whether INFY can trade at PE of single digit. If analysis says yes then better not invest or otherwise. INFY is a brand which is still intact, problems are internal which may get resolves over a period of time and plus point is that BS is very strong. This is the hypothesis for investment, of course if it goes wrong then we would be losing our money. Sin stocks like INFY one has to believe in the mgmt. I did in the case of MARUTI when problems were there but they fixed it smartly, i hope the same with INFY too. Once it happens people will forget current issues.
Consumption theme is already expensive and its now definitly risky. We have seem it in case of Zydus and TTK. Its the flavous of the the time which will get eroded again if new theme comes up in future. I am not smart enough to recognize the trend reversal to happy buying ignored but safe bets. High PE entails very high QoQ expectations and stock is crushed if they are not met.
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Posted By: tejas.k
Date Posted: 21/Oct/2012 at 10:04pm
Even the likes of MSFT,CSCO,INTC are trading <10 or ~10 PE with a very good yield. Massive cash in balance sheet. Every time I like at them, they look cheap. And a lot of articles talking about the turnaround.. I know these are not apple to apple comparison since all these are product based companies.
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Posted By: Shiv R
Date Posted: 14/Jan/2013 at 10:13am
http://in.reuters.com/finance/stocks/overview?symbol=TCS.NS&exchange=INSE - TCS shares are making a hat-trick today!
The company shared OND Results yesterday reporting 23% rise in profits!
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Posted By: ameydesai
Date Posted: 06/Mar/2013 at 3:05pm
TCS is making its lifetime high and Infosys is near its 52week high
Till about 2 months ago - we were hearing about lowering of revenue estimates from the IT biggies - now all of sudden what has lead to change in fundamentals in this scrips that everybody on the streets is chasing them
Disclaimer - I have liquidated my TCS holdings at 1450 (might re-enter at better valuation) & still hold Infosys
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Arise, Awake and Stop Not till the Goal is reached
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Posted By: FutureBull
Date Posted: 06/Mar/2013 at 9:01pm
IT companies broadly follow US stock markets and rightly so. If US economy gets better these stocks would do well for sure due to high revenue growth potential and cheap INR.
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‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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Posted By: TCSer
Date Posted: 06/Mar/2013 at 9:30pm
1)TCS is a changed co ever since young ,aggressive CEO Chandra took over.
2)Its become nimble footed and accountability increased a lot when 23 mini TCS were created in it.
3)Variable salary is a big lever to keep employees on toes n margins protected.
4)Discretionary spend is increasing in today era of tech transformation.
5)Indias demographic dividend benefit interms of coders availability.
6)Latest technologies like Mobility,Social media,analytics,big data increasing the usage of tech services exponentially
7)TCS needs to be compared on international basis
8)Highly Ethical promoters
9)Clean balance sheet
10)Size of opportunity still huge
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
|
Posted By: ameydesai
Date Posted: 06/Mar/2013 at 10:27am
Originally posted by TCSer
1)TCS is a changed co ever since young ,aggressive CEO Chandra took over.
2)Its become nimble footed and accountability increased a lot when 23 mini TCS were created in it.
3)Variable salary is a big lever to keep employees on toes n margins protected.
4)Discretionary spend is increasing in today era of tech transformation.
5)Indias demographic dividend benefit interms of coders availability.
6)Latest technologies like Mobility,Social media,analytics,big data increasing the usage of tech services exponentially
7)TCS needs to be compared on international basis
8)Highly Ethical promoters
9)Clean balance sheet
10)Size of opportunity still huge |
Originally posted by FutureBull
IT companies broadly follow US stock markets and rightly so. If US economy gets better these stocks would do well for sure due to high revenue growth potential and cheap INR. |
If these are the reasons - then TCS should give the 1300 levels again in the coming months ?
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Arise, Awake and Stop Not till the Goal is reached
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Posted By: manish_okhade
Date Posted: 06/Mar/2013 at 10:34am
Originally posted by TCSer
10)Size of opportunity still huge |
I say its a question mark, pie is big but players have increased too. Entry barriers are coming down a lot. IT is a pure commodity play and cyclical in nature and very volatile to global scenario.
Chances of doubling of MCAP from current level in next 5 years looks very remote i.e. hardly 15% CAGR. Should one invest for such low return?
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Posted By: ameydesai
Date Posted: 07/Mar/2013 at 1:13pm
Originally posted by manish_okhade
Originally posted by TCSer
10)Size of opportunity still huge |
I say its a question mark, pie is big but players have increased too. Entry barriers are coming down a lot. IT is a pure commodity play and cyclical in nature and very volatile to global scenario.
Chances of doubling of MCAP from current level in next 5 years looks very remote i.e. hardly 15% CAGR. Should one invest for such low return? |
Okhadeji - Also look at consistent dividend yield
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Arise, Awake and Stop Not till the Goal is reached
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Posted By: TCSer
Date Posted: 11/Aug/2013 at 12:15pm
Originally posted by ameydesai
Originally posted by manish_okhade
Originally posted by TCSer
10)Size of opportunity still huge |
I say its a question mark, pie is big but players have increased too. Entry barriers are coming down a lot. IT is a pure commodity play and cyclical in nature and very volatile to global scenario.
Chances of doubling of MCAP from current level in next 5 years looks very remote i.e. hardly 15% CAGR. Should one invest for such low return? |
Okhadeji - Also look at consistent dividend yield |
Visiting the thread after a long time. Lot of wealth created by this co Inspite of being Indias largest cap company for long. People who followed the thread would have created lot of wealth by now.
The company is still on an aggressive growth path. With our sourcing opportunity at USD 1.85 trillion n TCS ROCE of 50% n depreciating rupee it's a buy n hold story.
Let's get this thread active again.
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
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Posted By: TCSer
Date Posted: 23/Sep/2013 at 8:33pm
Teddies who would have followed this thread would have been laughing all the way to the bank. The story has played out as predicted in the beginning of this thread.
Right comparison of Tcs shud be at the international level . As long as Chandra is at the helm TCS will remain an outperformer n shud be held onto.
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
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Posted By: FutureBull
Date Posted: 23/Sep/2013 at 11:24pm
@$60bn this is already 2nd largest IT company after IBM which is struggling to grow. IBM has resorted to cost cuts etc. I agree growth potential is huge but challenges in front of mgmt. is also huge. They need to find new business to generate incremental profits of $600m so that they keep growing mcap by 20% assuming PE of 20x. As an individual investor I would have taken money off the table and invested in Mindtree or iGate. I noticed that Mindtree just got doubled over last year or so.
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‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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Posted By: TCSer
Date Posted: 23/Sep/2013 at 11:32pm
Outsourcing opportunity USD 1.85 Trillion. Raw material v cheap for IT cos. Scale & capability under aggressive CEO automatically attracts business.Varaiable pay & demographic dividend still valid.one needs to have an anchor stock .TCS is growing like a midcap with tailwinds in form of rupee depreciation & discretionary spend increasing in US & outsourcing being accepted in mainland Europe.
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Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
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Posted By: FutureBull
Date Posted: 23/Sep/2013 at 11:57pm
TCSerji, true that's why I qualified it by saying as a small investor I would quit not as an institutional one.
Originally posted by TCSer
Outsourcing opportunity USD 1.85 Trillion. Raw material v cheap for IT cos. Scale & capability under aggressive CEO automatically attracts business.Varaiable pay & demographic dividend still valid.one needs to have an anchor stock .TCS is growing like a midcap with tailwinds in form of rupee depreciation & discretionary spend increasing in US & outsourcing being accepted in mainland Europe. |
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‘The market always does what it’s supposed to — BUT NEVER WHEN’.
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