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TCS (Tata Consultancy Services) has hit a rough patch. After announcing plans to cut 12,000 jobs, the IT bellwether’s share price took another knock, slipping around 0.6 per cent today (July 29, 2025). The question now is whether this is just a passing storm or a sign of deeper cracks.
What’s happening?
The stock dropped by 0.6 per cent , touching Rs 3,060, slightly above its 52-week low of Rs 3,053. The immediate trigger? TCS’s decision to cut 2 per cent of its global workforce to streamline costs.
What this means for investors
Despite the gloom, TCS isn’t exactly falling apart. Its ROE is north of 50 per cent and zero debt underlines a fundamentally strong business. The real worry is sentiment — IT stocks have been 2025’s worst-performing sector so far, down 14 per cent year-to-date. Institutions have been trimming positions, and unless macro cues improve, patience may be tested.
About the company
Tata Consultancy Services is India’s largest IT services firm, catering to global clients in banking, retail, telecom and beyond. With over Rs 2.5 lakh crore in revenue and a market cap north of Rs 11 lakh crore, TCS is a heavyweight in every sense.
Below is a table summarising the company’s key fundamentals.
| Metric | Value |
|---|---|
| Market cap | Rs 11.14 lakh crore |
| ROE | 52.9 per cent |
| ROCE | 71.7 per cent |
| P/E ratio | 22.6 |
| P/B ratio | 10.4 |
| EPS (TTM) | Rs 136.2 |
| Book value | Rs 295.5 |
| Dividend yield | 4.1 per cent |
| Figures are TTM | |
Value Research Online ratings
- Overall: 4/5
- Quality: 10/10
- Growth: 10/10
- Valuation: 6/10
- Momentum: 1/10
Short-term pain, long-term promise?
Headlines scream layoffs, but fundamentals don’t lie. High ROE, zero debt, and steady cash flows matter far more than a bad quarter or two. That’s the TCS story right now. The fundamentals are intact, but growth headwinds and nervous sentiment mean it may stay choppy in the near term. If you’re holding for the next decade, this is noise.
This is exactly why thousands of disciplined investors turn to Value Research Stock Advisor — to cut through noise and stay anchored to quality businesses that endure and compound over time.
Stop reacting to every headline. Start focusing on what truly drives wealth.
Disclaimer: This article was crafted with the aid of artificial intelligence and meticulously reviewed and edited by our human experts to ensure accuracy and provide valuable insights. It’s intended for informational purposes only. We encourage you to conduct your own thorough research before making any investment decisions.
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