TCS…Buy-back Announcement


TCS board has announced buy-back of its equity to the extent of Rs 16000 crs at some premium over prevailing price on proportionate basis through stock-exchanges. This might seem a good and beneficial announce but in fact it would dent the share price post buy back hence it is best to sell entire holding of yours now or in a few days as deemed fit by you. It is quoting 2514/- right now.

The sole reason for my saying so it based on the long term price to book-value ratio, which has set a standard range for it to move within, now when the book value will diminish for the unsold shares by a greater degree hence either the price to book-value ratio will have to improve substantially for the price to maintain and go up or if this new ratio is not accepted by market then share price would fall. This holds good for the retail investors, the big holders will benefit by buy-back because they are always constrained to sell in bulk in open market.

Krishna Khandelwal

2 thoughts on “TCS…Buy-back Announcement

  1. Pingback: TCS @2328 0n 20/04/2017 | Panch Tattva Wisdom

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s