TCS set to become India’s first 100 billion dollar company

Keeping up the positive momentum, the company also announced 1:1 bonus shares of `1 face value to its investors at the end of FY18.

Published: 21st April 2018 06:35 AM  |   Last Updated: 21st April 2018 06:38 AM   |  A+A-

TCS CEO Rajesh Gopinathan. (Photo Courtesy: Facebook)

By Express News Service

MUMBAI: Tata Consultancy Services (TCS) seems to be on a tear. The IT bellwether may soon emerge as the country’s first $100 billion-dollar company. Following a better-than-expected quarterly earnings announced on Thursday, shares of TCS shot up as much as 6.7 per cent — the highest level last seen in April 2012 — to Rs 3,406 per share on Friday. Keeping up the positive momentum, the company also announced 1:1 bonus shares of `1 face value to its investors at the end of FY18.

The rise in the company’s scrip on Friday helped it cross Rs 6.5 lakh crore ($98.5 billion) in market value and is in within the kissing distance of $100 billion m-cap. But for it enter the magical $100-billion club, the scrip has to breach `4,337 per share, assuming the current value of the rupee at 66.05 against the US dollar.

In terms of market capitalisation, TCS has the largest m-cap and is ahead of companies like Reliance, HDFC Bank, ITC, Hindustan Unilever, HDFC, Maruti Suzuki and Infosys.Brokerages expect the software major to even better its financial performance during the current fiscal. “Definite possibility of double-digit revenue growth with robust deal wins and green-shoots in BFSI,” Edelweiss said in a note.

TCS’ results were in contrast to rival Infosys Ltd., which, last week delivered a subdued outlook. On the other hand, TCS, analysts said, had key positives including accelerated scaling of its digital business, strong traction in Europe with UK/Continental Europe growth, recovery in retail and CPG, supported by multi-practice deal wins and pipeline and strong profit generation and capital allocation policy to support valuations, said HDFC Securities in a note.

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