InvestorQ : How does the buyback of TCS look like at this point?
ishika Banerjee made post

How does the buyback of TCS look like at this point?

Answer
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4 months ago
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TCS has fixed the buyback price for its proposed buyback at Rs.4,500 per share. This price is at an approximate 17% premium to the current market price on the date of the announcement. The total size of the buyback will be around Rs.18,000 crore which is more than 10% higher than the previous 3 buybacks of Rs.16,000 crore each.

Currently, TCS trades at 31X forward earnings and a premium priced buyback surely instils confidence in the shareholders. Buyback also enhances EPS by reducing the outstanding shares. In its Dec-21 review, TCS had announced solid growth in top line, but its operating profit margins had fallen by 189 bps yoy. TCS also announced interim dividend of Rs.7 per share.

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