3 min read · Dec 16, 2023
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Tata Consultancy Services (TCS) is one of the largest IT services and consulting companies in India. As a leading technology company, TCS is well-positioned to benefit from major tech trends like cloud computing, artificial intelligence, and digital transformation. This article analyzes TCS’s business model, financial performance, and growth drivers to come up with a share price target for the year 2040.
If you want to know more price target of other stock for you can follow this site. TCS Business Model and Offerings
TCS operates primarily in the IT services industry. Its main offerings are:
- **IT Services:** Application development, maintenance, testing, infrastructure services, engineering services, BSS/OSS, etc.
- **Business Process Outsourcing:** HR, finance & accounting, supply chain, customer relations, KPO, etc.
- **Consulting and Services Integration:** Tech consulting, strategic consulting, system integration services.
TCS serves clients across major industries like BFSI, retail, telecom, manufacturing, healthcare, and more. With expertise across the latest technologies, TCS delivers end-to-end tech services for digital transformation to its clients.
| Fiscal Year | Revenue (INR Crores) | Growth (%) |
| — | — | — |
| 2023 | 238,577 | 16.55% |
| 2022 | 204,784 | 15.80% |
| 2021 | 176,666 | 4.21% |
| 2020 | 169,324 | 6.71% |
| 2019 | 158,688 | 9.95% |
| 2018 | 144,356 | 6.93% |
| 2017 | 135,114 | 8.65% |
| 2016 | 124,399 | 7.03% |
| 2015 | 116,317 | 16.62% |
| 2014 | 99,735 | 15.68% |
As seen from the table above, TCS has demonstrated consistent revenue growth year-on-year, with an average growth rate of ~10% over the past decade. This has been driven by rising IT spending across industries, digital transformation initiatives, and TCS’s strong execution and delivery capabilities.
Some of the major growth drivers that will propel TCS’s future growth and help unlock shareholder value:
Continued Digital Transformation
As more companies adopt cloud, AI/ML, IoT, automation, and other technologies, TCS being a leader in digital services is well placed to capitalize on this trend.
Global spends on information technology and business process outsourcing are [forecast to reach $5.6 trillion by 2026](https://www.idc.com/getdoc.jsp?containerId=prAP49511422). TCS can ride this wave with its end-to-end capabilities.
### Leadership in Innovation
TCS invests heavily in R&D and innovation e.g. its products/platforms like TCS BaNCS, QuartzTM, TwinXTM etc. Innovation will drive future growth.
### Geographic Expansion
TCS plans to tap newer geographies in Asia Pacific, Latin America, and Middle East & Africa which offer high growth potential in technology spends.
## TCS Share Price Projections till 2040
Based on TCS’s historical growth trajectory, financial performance and its strong positioning to tap tech trends globally, here are the annual price targets projected for TCS shares till the year 2040:
| Year | Expected Share Price (INR) | Growth (%) |
|-|-|-|
| 2025 | 5,500 | 25% |
| 2030 | 15,000 | 15% per annum |
| 2035 | 35,000 | 13% per annum |
| **2040** | **75,000** | 10% per annum |
In conclusion, given TCS’s market leadership, proven business model, anticipated industry growth trends, and its sound execution capabilities, the share price has the potential to grow over 10x from current levels to around INR 75,000 by the year 2040.
