Share Price

TCS Share Price: History and Company Analysis

Tata Consultancy Services (TCS) is the 2nd most valued company in India. It’s the biggest ‘Information Technology’ company in the country and the most profitable company for the Tata group.

Apart from all these achievements, TCS has provided jobs for thousands across India and also outside the country.

When a company becomes so successful over a short period of time, the reward for shareholders is huge too.

  • The TCS Share Price has gone up 29 times from its IPO in 2004.
  • TCS has paid dividends of nearly 500 rupees per share in the last 10 years.
  • The average returns over the last 15 years has been significantly higher than returns from fixed deposits.

For a more detailed analysis of the TCS Share Price, continue reading the article till the end.

Let’s get straight to the TCS share price history.

TCS IPO Share Price

The company was founded way back in 1968 as ‘Tata Computer Systems’. It was in the year 1980 when the company established its first software research and development center in Pune, India.

The journey for TCS at the stock market began in August 2004 – when the IPO was launched and the company was listed on NSE and BSE.

Quick look at the IPO details:

  • IPO: 4,99,07,340 Shares at ₹ 850 per share.
  • Face Value: ₹ 1 per share.
  • Listing Date: 25 August 2004.
  • Listing Day Open: 1076 per share
  • Listing Day Low: 979 per share
  • Listing Day High: 1080 per share
  • Listing Day Close: 987 per share

Note: From 2004 onwards, TCS has issued 1:1 bonus shares on 3 separate occasions. Those who had one share, got one extra share of the company in April 2006. Then again additional bonus shares were given in April 2009 and April 2018. The stock price was reduced by half each time the company gave 1:1 bonus. After adjusting for the bonus, the IPO price of the company will be considered to be ₹ 106.25 per share for our calculations.

TCS Share Price History

TCS Share Price

That’s a fabulous chart. A classic example of a steady compounder. One major fall in 2008, and a steep rise in share price 2016 onwards.

In fact, TCS Share Price has tripled in the last 4 years!

Detailed year-ending share price of TCS below.

TCSShare PriceRise / Fall
IPO106.25
Listing123.516.24%
200416735.22%
200521327.54%
200630643.66%
2007269-12.09%
2008119-55.76%
2009362204.20%
201056355.52%
2011560-0.53%
20126068.21%
2013104872.94%
2014125419.66%
20151195-4.70%
20161160-2.93%
2017132414.14%
2018185640.18%
2019216216.49%
2020286332.42%
202129101.64%

Those are the year-end share prices of Tata Consultancy Services. Go through the table and the graph, and try to form your own opinions on the movement of the share price.

TCS has been a consistent compounder over the year. It had one bad year (2008) when the entire world was going through the financial crisis. Almost all stocks crashed by 50% or more, TCS was no different.

Good companies recover after a bear market. Poorer companies are slower to recover. And fraud companies are usually buried forever.

TCS showed quick recovery. In 2009, the stock price jumped by more than 200% – which also happened to be the best ever year for the stock price of the company.

Another interesting point: The TCS share price fell below its IPO price in October 2008. This was an excellent entry opportunity for those who were willing to take a chance when the bear market was at its peak and there was pessimism all around.

The market does give excellent entry opportunity during bear markets, but it’s difficult to grab them due to pessimism and fear of bigger falls.

2009 onwards, TCS has been a steady performer. 2011, 2015 and 2016 were dull years, but apart from those, the TCS share price has been consistently rising.

TCS Share Returns

How much returns has ‘TCS’ given if you bought the share 2 years ago? Or 3, 4 or 5 years ago.

What if you were holding the shares from the time of its IPO? What if you bought shares on the listing day at ₹ 123 per share and managed to hold it through its ups and downs.

Check out the table below:

TimeCAGRAbsolute
2 years24.20%1.54
3 years29.31%2.16
4 years25.34%2.47
5 years19.09%2.40
10 years17.66%5.09
15 years18.91%13.44
Since Listing20.99%23.18
Since IPO22.09%26.95

Any stock which gives returns of 15% or above over a long period of time, can be called a consistent compounder. TCS has given compounded returns of close to 20%, with the stock performing very well in the last 3-4 years.

Over a 10 year period, a single rupee invested in TCS would be valued at 5 rupees.

1 Lakh invested in TCS Share

If you had invested 1 lakh in ‘TCS’, how much returns would it give over different time periods?

The table below has the figures:

1 Lakh Invested
2 years1.54 lakhs
3 years2.16 lakhs
4 years2.47 lakhs
5 years2.40 lakhs
10 years5.09 lakhs
15 years13.4 lakhs
Since Listing23.2 lakhs
Since IPO26.9 lakhs

If you did get allotment in the IPO and you managed to hold-on to the shares through all its ups and downs – 1 lakh invested in TCS would be nearly 27 lakhs today.

The above numbers do not include dividend, which the company has been paying every year.

It’s also worth mentioning that there never has been a bad time to invest in TCS. From the time the company was listed, you could pretty much invest on any day, hold for a long period of time, and the stock would’ve given you good returns.

Do note: Past performance does not guarantee future returns. We do not recommend any stock here, this is for educational purpose only. Kindly consult your financial advisor.

Moving on..

TCS Share vs FD Returns

What if you opened a fixed deposit of 1 lakh and made another investment of 1 lakh in TCS Shares.

The results are below. The returns from ‘TCS’ does not include income from dividends.

Fixed DepositTCS
20101,00,0001,00,000
20111,09,13099,467
20121,18,8211,07,638
20131,29,5151,86,146
20141,40,6922,22,735
20151,51,0752,12,256
20161,61,4692,06,039
20171,72,0932,35,169
20181,83,7103,29,663
20191,93,9973,84,014
20202,04,0275,08,526
Returns7.39%17.66%
TCS vs FD Returns

Some points:

  • There are no surprises in the infographic above. A top company which has done well in the last decade, will easily outperform all asset classes.
  • In this case, TCS has comprehensively beaten fixed deposits.
  • It’s worth noting that the average fixed deposit interest rates over the last 10 years was 7.4% (RBI data). Currently, the interest rate is much lower. Most banks are paying between 4-5%.
  • For individuals who are in the highest tax bracket, the interest rate after income tax will be much lower.
  • Also, the returns from TCS does not include income from dividend. With an investment of 1 lakh in TCS, the income from dividend before taxes would approximately be ₹ 85,000 – 90,000 for 10 years.
  • However, there’s a catch. Fixed deposits are ‘assured returns’, there is no risk involved if you deposit the money in a good bank.
  • Investing in the stocks is different. Even though TCS has given excellent returns over a 10 year period, look at what happened between 2010-2012.
  • While FD returns continued to accumulate, the investment value in TCS dropped in the second year.
  • FD returns would’ve been greater for 2 years, after which TCS shot up.
  • Most investors would find it difficult to hold-on to the stock during the ‘dull’ or ‘boring’ period when the stock price isn’t moving at all.
  • There would also be the constant urge to move to other stocks which are rising.
  • To hold stocks during tough period, you either need to know technical analysis to exit when a stock goes sideways, but buy the breakouts
  • Or you need to learn fundamental analysis. Deep dive and learn more about the business, its management, their vision. And then build enough conviction to hold it during tough times – when either the market is going down, or the stock is undergoing time or price correction.
  • Because those who hold quality non-cyclical stocks for the long term, are usually rewarded for their patience. TCS is one such example.

Would you invest in TCS for the future? Are you already a shareholder of the company? What price did you buy it for and when? Tell us in the comments section below.

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