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Rs 30/Sh Dividend: TCS Shares Slip After Net Profit Dips, Buy?

Tata Group IT sector company, Tata Consultancy Services Ltd share price today declined b 0.71% to Rs 3223.20 per share even as Sensex posted sharp gains of 1272 points to 75,119.8 in late afternoon trade. Earlier, the company on April 10, 2025 declared a drop of 2% year-on-year (YoY) in its net profit for Q4 FY25 to Rs 12,224 crore due to the current headwinds that hit the IT sector hard. The company reported its consolidated net profit at Rs 12,434 crore for the corresponding quarter of last year. Meanwhile, the company has a market capitalisation of Rs 11,67,195.03 crore.

The return on equity (ROE) of TCS stood at 57.71%. Tata Consultancy Services Ltd share price slipped 21.54% year-to-date and plunged 18.97% in last 1-year. LIC of India has 4.75% stake in TCS with 171,842,951 shares of the company. Check more details below:

Rs 30/Sh Dividend: TCS Shares Slip After Net Profit Dips, Buy?

TCS Recommends Dividend

According to the exchange filing of TCS dated April 10, 2025, โ€œWe would like to inform you that at the Board Meeting held today, the Directors have recommended a Final Dividend of INR 30 per Equity Share of INR 1 each of the Company which shall be paid/dispatched on the fifth day from the conclusion of the 30th Annual General Meeting, subject to approval of the shareholders of the Company.โ€ The company has yet to declare record date for final dividend.

TCS Dividend History

The IT sector stock recommended 88 dividends since 2004. In last 1-year, TCS announced an equity dividend of Rs 124.00 per share. Tata Consultancy Services offers a dividend yield of 3.85%, according to Trednlyne.

TCS Q4 Results Below Street Estimates

The company on April 10, 2025 declared its revenue from operations at Rs 64,479 crore, up 5.3% for the quarter ended March 31, 2025 as against Rs 61,237 crore reported in the similar quarter of last year. The IT major reported a decline of 1.3% in its net profit, sequentially. For the entire year (FY25), TCS reported a surge of 6% (YoY) in its revenue to Rs 2,55,324 crore.

The IT stockโ€™s constant currency growth for FY25 stood at 4.2% as compared to estimates of 3.8% to 4%. Meanwhile, the company declared its EBIT at Rs 15,601 crore for Q4 while EBIT margins announced at 24.2%. It secured record deals worth $12.2 billion for the quarter under consideration, higher than $10.2 billion in the December quarter.

TCS Shares Performance

The 52-week high price of TCS shares on BSE is Rs 4585.90 per share (as on 02/09/2024) and 52-week low price is Rs 3060.25 per share (as on 07/04/2025), respectively. TCS shares plunged 10.18% in last 2-weeks, slipped 24.10% in last 3-months, and fell 18.71% in last 1-year. The stock jumped marginally by 0.72% in last 2-years and fell again by 12.41% in last 3-years. TCS shares offered gains of 83.33% in last 5-years.

Should You Buy TCS Shares?

Leading brokerage firm Nuvama feels that the companyโ€™s revenue growth was hit by BSNL ramp down. Meanwhile, TCS management anticipates the current tariff uncertainty is temporary and robust deal wins in last 2 quarters likely to help the IT player. The analyst said, โ€œWe make minor adjustments to our FY26E/27E EPS (down 2.4 per cent/down 2.7 per cent). We continue to value TCS at 25 times FY27E PE, with a target of Rs 4,050 (earlier Rs 4,200). Retain โ€˜BUYโ€™ at attractive valuations (4 per cent dividend yield).โ€

On the other hand, Choice Broking assigned buy call with target price of Rs 3,950 per share, implying a PE multiple of 24 times based on the FY27E EPS of Rs 164.60. Nomura slashed the target price on TCS to Rs 3,490 from previous 3,890. The analyst recommended neutral rating.

TCS Bonus Share History

The company has so far announced bonus shares thrice since 2006. Its last bonus was announced in the proportion of 1:1 with ex-date set as May 31, 2018. It never recommended any stock split.

About

Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the worldโ€™s largest businesses in their transformation journeys for over 56 years.

Disclaimer: The stock has been picked from the brokerage report of Nuvama, Nomura, and Choice Broking. Moneydaily.in, the author, and the respective brokerage house will not be held accountable for any losses caused as a result of decisions based on the article. Moneydaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.

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