Tata Consultancy Services Ltd

“TCS is a capital-light, high-ROCE business with an exceptional balance sheet, disciplined capital returns, and a genuine moat built on client switching costs and platform embeddedness — but at current prices, the ~11% DCF-implied IRR is adequate rather than compelling, and the structural risk from AI-driven compression of the labour-arbitrage model is real enough to demand a wider margin of safety before committing with conviction. The stock is at multi-year lows after a 37% drawdown, and permanent capital loss risk is negligible, but the better move is to track for either a lower price (~₹1,900–2,000) or confirmed evidence that TCS is successfully monetising AI rather than being disrupted by it.”