TCS Share Price in Spotlight as Shares Trade Ex-Buyback Today

Tata Consultancy Services (TCS) has caught the attention of stock market enthusiasts as it trades ex-buyback today. The Indian IT giant revealed crucial information in an exchange filing, setting the stage for its upcoming buyback. TCS's buyback date is slated for November 25, 2023, and it will operate on an ex-trade basis. The buyback window is set to open on December 1, 2023, and will run until December 7, 2023, providing investors a specific timeframe to participate in the process.

TCS has declared a buyback price of ₹4,150 per share. This predetermined price will guide the buyback process and serve as a reference for investors considering participation. The IT giant is set to buyback 4.09 crore shares, aiming to extract ₹17,000 crore from its capital reserves. This move represents 1.12% of the total paid-up equity share capital.

The board of TCS had greenlit the buyback proposal earlier, signaling the company's strategic intent. The nod was given on October 11, 2023, with a clear mandate to repurchase up to 4,09,63,855 equity shares at ₹4,150 per share. This is company's fifth share buyback in a span of six years. Currently, TCS shares are trading at ₹3,501.45 on the NSE, reflecting a 0.19% decrease in the early deals.

TCS FY24 Q2 Highlights

On October 11, Tata Consultancy Services (TCS) announced its financial performance for the September quarter of the current fiscal year, with a net profit of ₹11,342 crore. This success was attributed to a resilient order book, particularly in the BFSI segment, amid challenging business conditions. The consolidated revenue for the quarter reached ₹59,692 crore, and TCS secured order wins totaling $11.2 billion, reflecting a quarter-on-quarter increase. The EBIT margin rose to 24.3%, up from the previous quarter's 23.2%, while the dollar revenue stood at $7,210 million. TCS's order book at the end of Q2FY24 was $11.2 billion, exceeding the previous quarter's $10.2 billion TCV.

Final Words

In the last month, Tata Consultancy Services (TCS) shares went up by 2.32%, showing a positive trend. Looking back over the past six months, investors gained a 5% return, indicating steady growth. However, for those who invested a year ago, the return was a bit lower at 2%. Now, zooming out to a broader perspective of five years, TCS stock has surged impressively by 76%. This suggests that over a more extended period, TCS has been consistently on the rise, making it an appealing choice for long-term investors.