Tata Consultancy Services (TCS) became the second listed company and the first information technology (IT) company to cross the Rs 13 trillion market capitalisation (market-cap) as the stock hit a new high in intra-day trade on Tuesday.
Shares of TCS hit a new record high of Rs 3,520, up 1.4 per cent on the BSE in intra-day trade. In comparison, the S&P BSE Sensex was up 0.09 per cent at 55,632 points at 11:21 am.
TCS’ stock, part of the Tata group of companies, was quoting higher for the ninth straight trading day. Thus far in the month of August, in 12 trading days, TCS has rallied 11 per cent, against a 6 per cent rise in the S&P BSE Sensex.
A sharp rally in stock price helped TCS’ market-cap rise to Rs 13.02 trillion. Currently, with a market cap of Rs 13.01 trillion, TCS stands at the number two position in the overall market cap ranking. Reliance Industries, which has a market-cap of Rs 13.80 trillion, stands at the number one position, BSE data shows.
TCS is one of the leading IT service providers with a presence in BFSI, Communication, Manufacturing, Retail & Hi-Tech verticals. The company has posted consistent organic revenue growth and industry-leading margins (>25 per cent).
The company is a key beneficiary of multi-year growth (15-20 per cent) in digital technologies. An increase in outsourcing in Europe, vendor consolidation and deal pipeline will lead to revenue CAGR of 13 per cent over FY21-23E, analyst at ICICI Securities said in the June quarter result update. The brokerage further said industry-leading margins will continue and expects its margins to improve by 142 bps over FY21-23E.
“Strong order book along with execution capabilities and upward traction across the geography should support topline growth. Additionally, improved operating leverage and a healthy balance sheet should provide further growth visibility in the upcoming quarter,” Geojit Financial Services said in the result update.
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First Published: Tue, August 17 2021. 11:35 IST