Indian stock alert

INDIA

CLOSING UPDATE: Tata Consultancy Services decreases 0.3%, led CNX IT index lower 18 October 2017 17:10 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 0.3% to trade at Rs2,586.60 vs. the CNX IT index which weakened 32.5 points (or 0.3%) to 10,910.1. Representing a weighting of about 46.6% of the index, the stock accounted for 47.6% of today's loss. Trading volume was 62% of average at the end of the day. Compared with the BSE SENSEX Index which fell 24.8 points (or 0.08%) in the day, this represented a relative price change of -0.2%.

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

Overvaluation:

+ Price/Earnings/Growth of 1.02 [0.3]

+ Price/Sales of 4.2 [3.1]

+ Price to Book of 6 [4.7]

+ Dividend yield of 1.8% [2.1%]

Bearish Signals:

+ Tobin's Q Ratio is 4.9. Compared with the rest of the market the stock is overvalued and ranks in the bottom 9% of stocks by value of Q Ratio.

Note

Bullish Signals:

The positive 24.01 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 3.2% discount to 12-month high of Rs2,671.47 against the 28.2% premium to 12-month low of Rs2,017.76 suggests the stock continues to push for new highs.

Total Liabilities/EBITDA of 0.5 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 30.7%.

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

Undervaluation:

Price/Earnings of 11.2 [13.4]

Return on Assets 25.5% [22.6%]

Return on Capital Employed 38.9% [29.5%]

TODAY'S ALERT

Morning Alert: Tata Consultancy Services decreases 0.1%

18 October 2017 10:16 IST

Tata Consultancy Services Limited (NSE:TCS) traded on volume of 0.3 times average so far today while the price decreased Rs1.55 (or 0.1%) to trade at Rs2,593.0.

RECENT ALERTS

CLOSING UPDATE: Tata Consultancy Services keeps rising: up 6.8% in 8 days

17 October 2017 17:10 IST

Tata Consultancy Services, India's largest it consulting & software company by market capitalisation, extended its gains on Tuesday, rising an additional Rs10.15 (or 0.4%) to trade at Rs2,594.55. Trading volume was 61% of average at the end of the day.

Afternoon Alert: Tata Consultancy Services increases 0.8%, leads IT consulting & software sector higher

17 October 2017 12:58 IST

Tata Consultancy Services Limited (NSE:TCS) has increased 0.8% to trade at Rs2,603.95 vs. the IT consulting & software sector which strengthened 148.3 points (or 0.3%) to 53,846.6. Representing a weighting of about 44.6% of the sector, the stock accounted for the gain. The shares have outperformed 88% of the market in the past week. Trading volume was 55% 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