Tata Consultancy Services Limited(TCS) is an Indian

multinationalinformation technology(IT)service,
consultingand business solutions company
headquarteredinMumbai,Maharashtra. It is a
subsidiary of theTata Groupand operates in 46
countries. TCS is one of the largest Indian companies
bymarket capitalization($80 billion). TCS is now
placed among the Big 4 most valuable IT services
brands worldwide.In 2015, TCS is ranked 64th overall
in theForbesWorld's Most Innovative Companies
ranking, making it both the highest-ranked IT services
company and the first Indian company.It is the world's
10th largest IT services provider, measured by the
revenues.As of December 2015, it is ranked 10th on
theFortune India 500list.

 Infosys Limited(formerlyInfosys
Technologies Limited) is an Indian
multinational corporationthat providesbusiness
consulting,information technologyand
outsourcingservices. It is headquartered in
Bangalore,Karnataka.
Infosys is the second-largest Indian IT services
company by 2016 revenues, and the fifth largest
employer ofH-1B visa professionals in the United
States in FY 2013. On 15 February 2015, its
market capitalisationwas263,735 crores
($42.51 billion), making it India's sixth largest
publicly traded company.

TCS-

Current Market
Price

2,615.55

P/E

52 Week High

52 Week Low

20.78

2,769.00

2,119.00

P/E

52 Week High

52 Week Low

17.75

1,278.00

1,012.25

INFOSYSCurrent Market Price

1,079.20

 TCS PROS & CONSPros:

Company has reduced debt.
Company is virtually debt free.
Company has a good return on equity
(ROE) track record: 3 Years ROE 41.09%
Company has been maintaining a
healthy dividend payout of 47.88%
Cons:
Stock is trading at 7.20 times its book
value

TCS SERVICES
TCS' services are currently organised into the following
service lines (percentage of total TCS revenues in the
2012-13 fiscal year generated by each respective service line
is shown in parentheses):

Application development and maintenance (43.80%) value;

Asset leverage solutions (2.70%);
Assurance services(7.70%);
Business process outsourcing (12.50%);
Consulting (2.00%);
Engineering and Industrial services (4.60%);
Enterprise solutions (15.20%); and
IT infrastructure services (11.50%).

INFOSYS SERVICES
It provides software development,
maintenance and independent
validation services to companies in
banking, finance, insurance,
manufacturing and other domains.
One of its known products isFinacle
which is a universal banking solution
with various modules for retail and
corporate banking.

Valuation Analysis of INFOSYSParticulars

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

Total
Income
from
Operations
(Rs.Cr.)

31,254.0

36,765.00

44,341.00

47,300.00

53,983.00

Growth (%) 23.12 %

17.63 %

20.61 %

6.67 %

14.13 %

PAT
(Rs.Cr.)

9,116.00

10,194.00

12,164.00

15,786.00

Growth (%) 31.46 %

7.63 %

11.83 %

19.33 %

29.78 %

Earnings
147.51
Per Share
Basic (Rs.)

158.76

178.39

105.91

68.73

Earnings
147.50
Per Share
Diluted
(Rs.)

158.76

178.39

105.91

68.73

Price to
Earnings

18.20

20.35

18.75

17.72

8,470.0

19.42

Valuation Analysis of TCSParticulars

FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

Total
Income
from
Operations
(Rs.Cr.)

48,893.83

62,989.48

81,809.36

94,648.41

1,08,646.21

Growth (%)

31.00 %

28.83 %

29.88 %

15.69 %

14.79 %

PAT
(Rs.Cr.)

10,523.45

14,075.69

19,331.87

20,059.70

24,374.94

Growth (%)

14.51 %

33.76 %

37.34 %

3.76 %

22.78 %

Earnings
Per Share
Basic (Rs.)

53.07

70.99

97.67

101.35

123.28

Earning Per 53.07

Share
Diluted
(Rs.)

70.99

97.67

101.35

123.28

Price to
Earnings

22.14

31.20

23.98

20.41

22.01