MUMBAI: IT bellwether Tata Consultancy Service (TCS) on Friday achieved yet another milestone after its market capitalisation surged past Rs 7 lakh crore (Rs 7 trillion) in the intra-day trade, making it the first Indian company to reach this level.
Last month, it became the first Indian IT firm to hit the $100 billion market capitalisation mark after reporting a better than expected numbers for the quarter ended March 2018.
On Friday, the company’s total m-cap zoomed to Rs 7.03 lakh crore after its share prices jumped to a record high of Rs 3,674 on the BSE in the intra-day trade. The share of TCS finally ended the day at Rs 3,589.45 commanding a market capitalisation of Rs 6.87 lakh crore.
The better that expected numbers reported by India’s largest software exporter has helped its share prices to maintain its winning momentum till date. TCS has gained over 35 per cent in 2018 till date making its one of the best performers among the index constituents.
Apart from strong recovery posted by some of the large IT firms, experts said the depreciation of the Indian rupee against the dollar has also improved their future prospects of attracting fresh investment from both domestic as well as foreign investors.
Responding to its Q4FY18 numbers, most of the brokerages had issued either buy or hold rating on TCS stating that there is limited downside to the stock.
“With robust deal wins and green-shoots in BFSI, there is definite possibility of double-digit revenue growth. With growth acceleration, scale up in digital and support from currency, margins are ready for uptick as well, implying return of double-digit revenue/earnings growth after three years,” analysts at Edelwe-iss Financial Services said after the company posted its Q4 numbers.
They say large Indian IT firms are entering a V-shaped earnings recovery phase enab-led by huge digital-led demand and potential margin impro-vement.
