This tech company receives a contract worth £1.50 billion from a UK company!
The company has a great ROCE of 59.1 per cent and a ROE of 46.9 per cent.
Tata Consultancy Services is an IT services, consulting and business solutions organisation that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. This is delivered through its unique Location Independent Agile™ delivery model, recognised as a benchmark of excellence in software development.
Tata Consultancy Services (TCS) and Nest, the UK's largest workplace pension scheme, are expanding their partnership to digitally transform Nest's scheme administration services. TCS will use its digital-first platform, TCS BaNCS™, to enhance member experiences and deliver personalised, self-directed services. The initial contract is valued at £840 million for 10 years, with a potential maximum value of £1.5 billion over 18 years.
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The company has delivered returns of 51 per cent over the past 3 years and returns of 74 per cent over the past 5 years. Additionally, the company has a great ROCE of 59.1 per cent and a ROE of 46.9 per cent. Moreover, the company has a healthy dividend payout ratio of 61.4 per cent.
On Friday, shares of the company plunged by 0.66 per cent to trade at Rs 3217.45.
Investors should keep a close eye on this tech stock.