Tata Consultancy Services Ltd’s (TCS) market capitalization surged past the ?10 trillion mark for the first time on Monday, becoming the second Indian firm after Reliance Industries Ltd (RIL) to achieve the milestone.
Shares of TCS jumped nearly 6% intraday to hit an all-time high of ?2,669 apiece on the BSE. Led by this its market capitalisation touched the Rs10.04 trillion mark. The Mukesh Ambani-led firm, however, remains the nation’s biggest company with a market capitalization of ?15 trillion.
Of the 47 brokers tracking TCS on Bloomberg, 19 have recommend ‘buy’, 11 have maintained ‘sell’, while 17 have put ‘hold’ rating on the stock. So far this year, the scrip has surged 22.32%.
The company will announce its earnings on 7 October.
According to Bloomberg 10 analysts, TCS may report ?38926 crore revenue for the September quarter while net income will be at ?7754 crore.
The board will also consider a share buyback proposal. Share buybacks typically improve earnings per share and return surplus cash to shareholders, while supporting the stock price during sluggish market conditions.
“We expect TCS to be a key beneficiary of rising spends on Digital, given: the breadth of its offerings, leadership position across key digital areas such as cloud, data & analytics, customer experience, differentiation offered by its Products & Platform strategy and ability to stitch large complex engagements (for e.g., deal win with Walgreens Boots Alliance)”, said Nomura Research in a note to its investors.
“TCS expects revenue growth momentum to improve, led by: strong deal wins in 1Q, robust pipeline and a 3x increase in customer engagement, and positive quarter on quarter growth momentum across verticals with N America BFS leading the recovery”, Nomura Research added.
News Source:- Livemint