Shares of India’s largest IT behemoth TCS (Tata Consultancy Services) surged by as much as 2.5% on Tuesday, and closed above its buyback price of Rs 2,100. The firm has announced a mega share buyback program worth Rs 16,000 crore, to repurchase as many as 7.61 crore equity shares for up to Rs 2,100. The record date for the said buyback was fixed as 18 August 2018. TCS shares closed at Rs 2,100 on NSE, up by more than 2.3%. Interestingly, the rally in the shares of IT bellwether has TCS to reclaim the Rs 8 lakh crore market capitalisation.
At such a whopping amount, TCS is the only second Indian firm after Mukesh Ambani-led Reliance Industries to achieve the feat. Of the 50 brokers tracking the TCS stock on Bloomberg, as many as 22 recommend a “buy” rating, eight “sell” the stock 20 a “hold” rating. Notably, TCS shares have returned more than 55% in the year so far. A weakening rupee has helped to lift the export oriented IT and pharma stocks in India.
Notably, the shares also zoomed to their 52-week high on NSE today. TCS on June 15 became the first company to close the trading session with a market valuation of over Rs 7 lakh crore. In April this year, the company surged beyond the $100 billion-mark, becoming the first Indian IT firm to achieve the feat.
“A portfolio of turnkey services offerings, traction in emerging markets, improving sales and marketing prowess, and willingness to take multiple big bets (different go-to-market models) are among the key drivers that should help TCS sustain its hi-growth trajectory in the long run”, Edelweiss Securities said in a recent report. The brokerage firm notes that TCS is well-positioned to benefit from the growing demand for offshore IT services. “Considering its greater experience than peers in implementing large, complex, and mission-critical projects, the company is a serious contender for large deals”, Edelweiss Securities said in the report.