Indian stock alert

INDIA

CLOSING UPDATE: Tata Consultancy Services increased further 0.5%, led BSE Teck index higher 25 July 2017 17:16 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 increased 1.6% to trade at Rs2,571.50 vs. the BSE Teck index which strengthened 10.0 points (or 0.2%) to 5,920.3. Representing a weighting of about 33.0% of the index, the stock accounted for the gain. The shares have outperformed 85% of the market in the past week. Trading volume was 1.1 times average at the end of the day. Compared with the BSE SENSEX Index which fell 23.2 points (or 0.07%) in the day, this represented a relative price increase of 1.7%.

Technical indicators complementing today's significant uptrend:

+ The positive 24.77 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The 4.5% discount to 12-month high of Rs2,691.90 against the 27.4% premium to 12-month low of Rs2,017.76 suggests the stock continues to push for new highs.

+ The price jumped 7.1% in the last week and soared 10.1% in the last month.

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

Undervaluation:

+ Price/Earnings of 11.0 [13.4]

+ Return on Equity 30.7% [7.7%]

+ Return on Assets 25.5% [4.4%]

+ Return on Capital Employed 38.9% [8.2%]

Other Bullish Signals include:

+ 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%.

Note

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 8% of stocks by value of Q Ratio.

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

Overvaluation:

Price/Earnings/Growth of 1.0 [0.3]

Price to Book of 6 [1.1]

Dividend yield of 2.1% [2.4%]

TODAY'S ALERTS

Afternoon Alert: Tata Consultancy Services increases 1.1%, leads BSE Teck index higher

25 July 2017 12:58 IST

Tata Consultancy Services Limited (NSE:TCS) has increased 1.1% to trade at Rs2,557.80 vs. the BSE Teck index which strengthened 10.0 points (or 0.2%) to 5,920.3. Representing a weighting of about 32.8% of the index, the stock accounted for the gain. The shares have outperformed 87% of the market in the past week. Trading volume was 1.3 times average so far today.

Morning Alert: Tata Consultancy Services decreases 0.2%

25 July 2017 10:17 IST

Tata Consultancy Services Limited (NSE:TCS) traded on volume of 0.8 times average so far today while the price decreased Rs6.05 (or 0.2%) to trade at Rs2,524.65.

RECENT ALERTS

CLOSING UPDATE: Tata Consultancy Services increased further 0.8%, led CNX IT index higher

24 July 2017 17:07 IST

Tata Consultancy Services, India's largest it consulting & software company by market capitalisation, has increased 1.9% to trade at Rs2,530.70 vs. the CNX IT index which strengthened 112.0 points (or 1.1%) to 10,823.5. Representing a weighting of about 45.8% of the index, the stock accounted for 81.7% of today's gain. The shares have outperformed 84% of the market in the past week. Compared with the BSE SENSEX Index which rose 217.0 points (or 0.7%) in the day, this represented a relative price increase of 1.2%.

Afternoon Alert: Tata Consultancy Services increases 1.0%, leads CNX IT index higher

24 July 2017 12:58 IST

Tata Consultancy Services Limited (NSE:TCS) has increased 1.0% to trade at Rs2,509.75 vs. the CNX IT index which strengthened 63.6 points (or 0.6%) to 10,775.2. Representing a weighting of about 45.7% of the index, the stock accounted for 79.7% of today's gain. The shares have outperformed 83% of the market in the past week. Trading volume was 81% 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