Tata group share is available at a discount of Rs 1000. Should you by TCS share?

The stock is down more than Rs 1000 from its 52-week high

This Tata Group share is available to purchase at less than Rs 1000

Were you eyeing an opportunity to enter the software giant TCS share? It is the crown jewel of the Tata Group, and the stock is down more than Rs 1000 from its 52-week high. Sounds too good to be true, right. So what are you waiting for? The stock has been a consistent compounder over the years and is known for its stellar returns. It is the most valuable Tata Group company and one of the most profitable companies in India.

From a 52-week high of Rs 4043, the stock is down more than 25%, and it is trading below Rs 3000 on Thursday, 14.07.2022. The stock was the first Indian IT company to reach a market capitalization of $100 Billion. The stock has been down more than 17% in the last three months, and the stock appears to be reasonably priced. Trading at a PE ratio of 28, the stock looks reasonably priced considering the firm's high cash flow generation potential. 

Related: Returns generated by Indian IT stocks in 2021

What experts say about the TCS stock?

Experts are bullish on the stock, and out of 45 experts, 21 experts recommend buying the stock, whereas only nine recommend a sell on the stock. Fifteen experts have a hold rating on the stock.

BNP Paribas has a buy rating on the stock, and the target price is Rs 3600 as per the brokerage house. Also, Motilal Oswal is bullish on the stock, and the recommendation is to buy the stock with a target price of Rs 3730. The domestic brokerage is very bullish on the TCS stock. At the current market price of less than Rs 3000, you can expect a good return on the stock.

In the last three years, the stock has given a return of 44%. The last 12 months have seen a decline of almost 5% in the stock of the firm. Almost a 17.5% decline has been witnessed in the last three months for the IT stock.

The company operates in 46 countries with 285 offices. Also, the delivery centres are based out of 147 locations across 21 countries. It is an IT outsourcing giant, and the clients are across almost all geographies. The market cap of the firm is almost Rs 11 Lakh crores.

TCS is an outsourcing giant, and the firm is available at a reasonable valuation because of the market volatility. The stock is down more than 25% from its 52-week high, and if you were waiting for an entry point in the stock, this looks like a good point to enter. The stock is available at a discount of more than Rs 1000 and looks like a reasonable price to enter for long-term investment. 

Interested in defense stocks? Read this article to find out if 2022 could be a year of defense stocks.

Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.

M Stock

NEWSLETTER

Related Article

Premium Articles