TCS becomes first Indian company to cross $100 bn in market-cap

TCS becomes first Indian company to cross $100 bn in market-cap

New Delhi, Apr 23: Tata Consultancy Services (TCS) has become the first Indian $100 billion- dollar company in terms of market capitalisation (market-cap), after the stock of the IT bellwether hit a new high on Monday.
The stock hit a new high of Rs 3,499, up 2.7% in intra-day trade, extending its Friday’s 6.7% surge, as the company reported better-than-expected March quarter earnings in post market hours on Thursday. TCS also announced 1:1 bonus shares i.e. one bonus shares of Rs 1 face value each for every share held in the company to its investors.
The 10% rise in the company’s scrip in past two trading days helped it cross Rs 6.69 trillion ($101 billion) in market-cap at 09:55 am, the BSE data shows. Currently, the rupee is trading at 66.21 against the US dollar. TCS is currently accounted 11% of the total Sensex market-cap of Rs 60.81 trillion market-cap.
In terms of market capitalisation, TCS raks ahead of Reliance Industries, HDFC Bank, ITC, Hindustan Unilever, HDFC, Maruti Suzuki and Infosys.
Most analysts are now bulish on the stock and have revised their target price. At least half a dozen foreign brokerages increased their price target for the stock by over 15 per cent post the results announcement last week.
Brokerages see TCS’ positive commentary on banking and financial services staging a comeback and higher growth in digital services as a huge momentum to their double digit growth plans for FY19.
In its recent report, analysts at Nomura, however, have maintained a reduce rating on the stock with a target price of Rs 2,750.
“We retain Reduce as we find valuations expensive at ~20x FY20F and see risk to street expectations of ~double-digit constant currency (CC) revenue growth and flattish margins. Our caution stems from: 1) large segments US/BFSI remaining weak, growing at low- to mid-single digits y-y, with clarity on BFSI still a quarter away amid risks from insourcing at large US Banks,” Ashwin Mehta and Rishit Parikh of Nomura said in a recent report.