Indian stock alert

INDIA

CLOSING UPDATE: Tata Consultancy Services increases 1.0%, led CNX IT index higher 18 January 2018 17:24 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 1.0% to trade at Rs2,918.20 vs. the CNX IT index which strengthened 39.3 points (or 0.3%) to 12,570.7. Representing a weighting of about 45.9% of the index, the stock accounted for the gain. The shares have outperformed 86% of the market in the past week. Compared with the BSE SENSEX Index which rose 178.5 points (or 0.5%) in the day, this represented a relative price increase of 0.5%.

Technical indicators complementing today's significant uptrend:

+ The positive 61.52 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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

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

Undervaluation:

+ Price/Earnings/Growth of 2.0 [2.3]

+ Return on Equity 30.7% [23.2%]

+ Return on Assets 25.5% [16.8%]

+ Return on Capital Employed 38.9% [28.7%]

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 5.6. Compared with the rest of the market the stock is overvalued and ranks in the bottom 7% of stocks by value of Q Ratio.

Overbought/Bearish:

The 0.5% discount to 12-month high of Rs2,933.0 against the 37.8% premium to 12-month low of Rs2,117.45 suggests the climb might be peaking.

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

Overvaluation:

Price/Sales of 4.7 [3.4]

Price to Book of 6.8 [5.2]

TODAY'S ALERT

Afternoon Alert: Tata Consultancy Services keeps rising: up 5.3% in 3 days

18 January 2018 13:00 IST

Tata Consultancy Services Limited (NSE:TCS) extended its gains on Thursday, rising an additional Rs2.50 (or 0.1%) to trade at Rs2,891.45. Trading volume was 63% of average so far today. The shares have risen Rs145.35 (or 5.3%) over the past three trading days vs. the BSE SENSEX Index which has risen 1.8% in the same period.

RECENT ALERTS

CLOSING UPDATE: Tata Consultancy Services increases 1.3%, led CNX IT index higher

17 January 2018 17:18 IST

Tata Consultancy Services, India's largest it consulting & software company by market capitalisation, has increased 1.3% to trade at Rs2,888.95 vs. the CNX IT index which strengthened 100.5 points (or 0.8%) to 12,531.4. Representing a weighting of about 45.7% of the index, the stock accounted for 75.3% of today's gain. Trading volume was 2.0 times average at the end of the day. Compared with the BSE SENSEX Index which rose 310.8 points (or 0.9%) in the day, this represented a relative price increase of 0.4%.

Afternoon Alert: Tata Consultancy Services increases 1.3%, leads market higher

17 January 2018 13:00 IST

Tata Consultancy Services Limited (NSE:TCS) has increased 1.3% to trade at Rs2,887.0 vs. the BSE SENSEX Index which strengthened 176.7 points (or 0.5%) to 34,947.7. Representing a weighting of about 9.6% of the index, the stock accounted for 24.0% of today's gain. The shares have outperformed 84% of the market in the past week. Trading volume was 1.7 times average so far today.

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

ISIN: INE467B01029

PermID: 5001147862

Source: www.BuySellSignals.com