Should I buy TCS or Infosys

General
1

This is an example, and I need to understand based on the below data which company I should buy

Amount available for Investment - 3,200
TCS Infosys
CMV 3104|1354
EPS 87|45
BV 235|199
FV 1|5
PE 35|31
Div yield 1.22|1.29
P/B 13.22| 6.77

With the amount, I can buy one share of TCS and 2 shares of Infosys.

What should be my decision, what are the factors that I should consider.

My personal analysis is Infosys is better in number terms for the following reason

  1. EPS is double for TCS, but then I can buy 2 shares of infosys with the same capital (will it be 90 as against 87 when two shares are considered)
  2. Dividend yield is more or less the same which means, since I hold two shares, I will get an higher amount as I hold two shares.
  3. PE ratio is also same - so neutral
  4. Book value is the net value of the company after meeting all liabilities and P/B for infosys is half of TCS.

Is my assessment correct or am I going wrong somewhere? Do I need to consider any other ratio?

I really request someone, anyone to respond based on this specific example.

PS: Luxury to have - if we can get excel data copied here.

2

It depends on your interpretation of future growth of both companies ,whichever you think going to grow in profit and revenue you should buy that .apart from this if you ask anybody else each person would have a different view on both companies

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3

Not exactly. Dividend Yield is calculated as a percentage of a company’s market price of a share that is paid to shareholders in the form of dividends. Infosys has a much higher Dividend yield, if that interests you.

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4

i would anytime prefer tcs with ROCE of 48.9 %…don’t buy only for dividend yield in my view. fyi, i buy both but based on my strategy…

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5

At any point of time I would go for TCS.

With Tata being parent company and other businesses of Tata are not in good shape. So they might require more financial support from TCS.

Hence TCS will try to help Tata by way of dividends, bonus shares, buy backs and other ways.

If you hold a share of TCS, you too will get the same benefits.

Company wise TCS has presence across the globe and they have many projects with many governments in India and outside. So they will have the flexibility of long term relationship with clients.

Now up to you you decide.

Thanks.emphasized text

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6

i am a full time employee of TCS .

if the TCS share price is rising ; how can be benefitted from it ?

how can i participate in the ESOP for the TCS ?

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7

you have to ask your company if you are eligible for ESOP as it’s generally given at senior designation.

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