Tata Consultancy Services’ stock extended its post results rally to briefly hit the $100-billion market capitalisation mark on Monday, creating a significant milestone.
Tata Consultancy Services’ stock extended its post results rally to briefly hit the $100-billion market capitalisation mark on Monday, creating a significant milestone. The stock gained as much as 4.4% during the day’s trade before settling at Rs 3,415.20 on BSE, up 0.26%. The move cheered the management, as it must have stakeholders. Speaking on the occasion, Tata Sons chairman N Chandrasekaran, said “It is a very proud moment for all of us. TCS has been able to create value consistently by making the right investments not only in terms of technology, but also in terms of creating capabilities, building leadership and talent, seeding new markets and developing scalable world-class solutions. I would like to thank our shareholders for their continued support.
The digital era is going to be a large opportunity for TCS. Organisations are transforming into real-time enterprises driven by data, analytics and automation irrespective of its business and TCS is well positioned to make an impact and continue to deliver value.” During the intra-day trade the market capitalisation of the company scaled to a high of $102.6 billion, which is more than the entire market capitalisation of stock exchanges in countries like Peru, New Zealand, Kuwait, Portugal and Pakistan. In fact there are 43 countries in the world with a market capitalisation less than that of TCS, data compiled form Bloomberg showed.
However on a closing basis the market capitalisation of the software exporter stood at Rs 6.54 lakh crore ($98.5 billion). With the Monday’s gain, the stock has rallied over 8% in last three sessions and 26.5% since the beginning of the year. This compares with 1.2% gain yielded by the benchmark Sensex. Rajesh Gopinathan, CEO & MD, TCS, also speaking on the new landmark said, “We are indeed delighted and thankful to our employees and customers who have been instrumental in achieving this milestone – what is exciting for us is the whole business 4.0 journey and the great opportunity to be a digital partner of choice to our customers in their growth and transformation journey”.
TCS stock clocked its biggest single day gain of 7% in six years on Friday, following company posting its biggest-ever quarterly net profit, which beat street estimates. The rally in the stock propelled its market valuation up by Rs 41,300 crore ($6.2 billion). TCS reported a strong sequential constant currency growth of 2%, powered by large deals. The company has also proposed a 1:1 bonus share issue to shareholders.
Kotak Institutional Equities opined “We expect a better FY2019 and forecast constant currency revenue growth of 9.2% led by revenue recognition from large deals but partly tempered by a weak banking vertical.” With the market capitalisation scaling $100 billion, the Indian IT bellwether has qualified to join the club of the 100 most valuable companies in the world, and only the second Indian company ever to achieve that milestone—Reliance Industries had crossed this threshold in October 2007 when the rupee was trading at 39 against the US dollar.