Company TCS: Why Holding and Reinvesting Really Paid Off

Investment Scenario: Let’s go back to 2015. Imagine an investor who invested ₹100000.00 in Tata Consultancy Services Limited (TCS) company stock and held it steadily for 10 years . Instead of chasing short-term gains, the investor chose a long-term approach—holding the shares and reinvesting all dividends at the end of each year to purchase additional TCS stock. This strategy, known as dividend reinvestment, allowed the investment to compound over time, not just through stock price appreciation but also through growing dividend payouts.

At the end of 2025, the ₹100000.00 investment in NSE:TCS would be worth approximately ₹616509.80 due to stock splits and dividends that have been reinvested, which demonstrates a total gain of ₹516509.80 and a return on investment (ROI) of 516.51%, as well as an annualized compounded growth rate (CAGR) of around 19.95%. This illustrates the advantages of long-term investing, adhered to a disciplined reinvestment plan, and also illustrates how an initially small investment into a strong, fundamentally sound company (and move good company like Tata Consultancy Services Limited (TCS)) can create considerable wealth over the long run.

What made the real difference was dividends being reinvested and not selling the stock during stock splits. Every dividend was used to purchase additional shares. When Company Tata Consultancy Services Limited (TCS) stock split, the investor received additional shares without spending a single additional penny. The magic of compounding work - slowly at first and began to compound impressively.

Tata Consultancy Services Limited (TCS) Investment Summary (2015 – 2025)

By 2025, the share price increased to ₹3227.80. This resulted in a significant appreciation in the value of the investment. 

 This performance reflects a Compound Annual Growth Rate (CAGR) of approximately 19.95% — a strong return over the period. 

Yearly Breakdown