Indian stock alert

INDIA

CLOSING UPDATE: Tata Consultancy Services decreases 0.6%, led market lower 18 June 2018 18:17 IST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Indian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Tata Consultancy Services, India's largest it consulting & software company by market capitalisation, has decreased 0.6% to trade at Rs1,829.0 vs. the BSE SENSEX Index which weakened 73.9 points (or 0.2%) to 35,548.3. Representing a weighting of about 11.7% of the index, the stock accounted for 33.4% of today's loss. Trading volume was 1.7 times average at the end of the day. Compared with the BSE SENSEX Index which fell 73.9 points (or 0.2%) in the day, this represented a relative price change of -0.4%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

+ Price/Earnings of 27.3 [21.4]

+ Price/Earnings/Growth of 2.78 [2.4]

+ Price/Sales of 5.7 [3.8]

+ Price to Book of 8.4 [1.5]

Bearish Signals:

+ Tobin's Q Ratio is 6.6. Compared with the rest of the market the stock is overvalued and ranks in the bottom 4% of stocks by value of Q Ratio.

Note

Bullish Signals:

The positive 23.08 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 2.1% discount to 12-month high of Rs1,867.95 against the 60.0% premium to 12-month low of Rs1,142.90 suggests the stock continues to push for new highs.

In the last one month the stock has hit a new 52-week high seven times and in the last three months ten times, pointing to a significant uptrend.

The price climbed 4.5% in the last week and 5.6% in the last month.

The present value of Rs1,000 invested one year ago is Rs1,574 [vs Rs1,145 for the BSE SENSEX Index].

Total Liabilities/EBITDA of 0.6 is comfortably below the Joseph Piotroski benchmark of <5.

Net profit margin has averaged 21.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

As per the Du Pont analysis, Return on Equity is high at 30.3%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

Return on Equity 30.3% [24.1%]

Return on Assets 24.3% [17.2%]

Return on Capital Employed 38.5% [8.2%]

TODAY'S ALERTS

Afternoon Alert: Tata Consultancy Services up 3.1% in 2 days

18 June 2018 12:59 IST

Tata Consultancy Services Limited (NSE:TCS) extended its gains on Monday, rising an additional Rs3.25 (or 0.2%) to trade at Rs1,843.30. Trading volume was 1.4 times average so far today. The shares have risen Rs55.75 (or 3.1%) over the past two trading days vs. the BSE SENSEX Index which has fallen 0.02% in the same period.

Morning Alert: Tata Consultancy Services up 3.1% in 2 days

18 June 2018 10:16 IST

Tata Consultancy Services Limited (NSE:TCS) extended its gains on Monday, rising an additional Rs2.95 (or 0.2%) to trade at Rs1,843.0. Trading volume was 2.1 times average so far today. The shares have risen Rs55.45 (or 3.1%) over the past two trading days vs. the BSE SENSEX Index which has fallen 0.05% in the same period.

RECENT ALERTS

CLOSING UPDATE: Tata Consultancy Services lifts 2.9%, led market higher

15 June 2018 18:24 IST

Tata Consultancy Services, India's largest it consulting & software company by market capitalisation, has lifted 2.9% to trade at Rs1,840.05 vs. the BSE SENSEX Index which strengthened 22.3 points (or 0.06%) to 35,622.1. Representing a weighting of about 11.7% of the index, the stock accounted for the gain. The shares have outperformed 81% of the market in the past week. Trading volume was 3.2 times average at the end of the day. Compared with the BSE SENSEX Index which rose 22.3 points (or 0.06%) in the day, this represented a relative price increase of 2.9%.

Afternoon Alert: Tata Consultancy Services increases 0.5%, leads BSE Teck index higher

15 June 2018 12:59 IST

Tata Consultancy Services Limited (NSE:TCS) has increased 0.5% to trade at Rs1,795.65 vs. the BSE Teck index which strengthened 13.9 points (or 0.2%) to 7,069.8. Representing a weighting of about 39.0% of the index, the stock accounted for 88.3% of today's gain. The shares have outperformed 80% of the market in the past month. Trading volume was 88% of average so far today.

Tata Consultancy Services Limited (NSE:TCS; BSE:TCS; NS:TCS; IN:TCS)

ISIN: INE467B01029

PermID: 5001147862

Source: www.BuySellSignals.com