Thank you for asking that question. Being in a field, I have not bothered to organize thoughts about TCS position in IT services sector.
Being indisciplined, I have myself not benifited from this. Hope this trigger will also push me a little bit in right direction.
TCS has some unique advantages over other software service companies.
1). TCS sales does not only come from “bid and win”. They have capability go beyond this framework and as a result, they continue to add clients and increase portfolio of existing customer base. Not to forget, they can tap clients from other Tata companies which gives them a good head start. Others waste money in reaching to TCS starting point, in many cases.
2). TCS execution model is something that other software services companies are not able to replicate - that includes indian as well as overseas services companies like accenture. Interestingly, if one tries to find out “what is execution model of TCS”, one will not get straight answer. But for other companies, thereare simple explainations like “offshore model”, “2 in a box model” etc.
3). TCS is more immune to currency fluctuations because of differential pricing system. While other services companies tried $, Euros pricing models, they have not yet reached TCS pricing system level. This is a favorite topic in analyst community and we can find much detailed and accurate information in their analysis.
About stock price - it has always seemed costly. But heck, it has lived upto the expectation till now.
ICICI - this is a long time bet. ICICI was really not priced correctly when it was trading at 600 in 2008/2009 timeframe. I picked up few at that price. Many do not like ICICI for different reasons like uneven customer handling, crisis management, claims settlement issues, bad assets to name a few. Market did punish ICICIwhenever something like these popped up. Despite of these, it has been able to withstand RBI and IRDA.
Along with SBI, ICICI shown some cyclic movements - this may put us in discomfort for long term investmentand at the same time, opportunity at low levels.
Would like to know analysis as well. Thank you.