TCS first Indian company to touch $100 bn in market cap
- Author: Rita Burton Apr 24, 2018,
Apr 24, 2018, 3:34
TCS is the leading the chart as the most valued firm followed by Reliance Industries Ltd (Rs 5,87,929.90 crore), HDFC Bank (Rs 5,08,884.23 crore), ITC (Rs 3,36,777.52 crore) and HUL (Rs 3,17,211.69 crore) in the top-five list. Reliance Industries Limited was the first Indian company to cross $100 billion in 2007, but its market capitalisation is now $89.36 billion, Mint reported.
Now, TCS' market-cap is equal to the gross domestic product (GDP) of 128 countries of the world. Among its peers, IBM's (International Busines Machines) market cap stands at $133.48 billion.
"It's great news not just for TCS, even for the Indian equity market as a whole", said Urmil Shah, an analyst at IDBI Capital. "The above factors cumulatively indicate that earnings growth rate can jump nearly 3x from a mere 3-5% over FY16-18 to 13-15% over FY21", Edelweiss analysts said in the report.
The company's market cap went slightly over $99 billion when markets closed on Friday. TCS went past the $100 billion market capitalisation landmark after its scrips gained more than 4 per cent on Monday to reach an all-time of Rs 3,557.
On NSE, the stock jumped 4.56 percent to Rs 3,557.90.
As part of its "Business 4.0" strategy, TCS is looking at new age-technologies like automation, cloud and Internet of Things (IoT) driving digital revenues of the company to over Dollars 5 billion this year.More news: United Nations rejects Russian attempt to condemn USA aggression in Syria
"Delivering a superior, personalized experience to customers across a multitude of channels is an imperative for any enterprise seeking to differentiate itself in a Business 4.0 world", said Sunil Karkera, Global Head - TCS Interactive.
"The digital era is going to be a large opportunity for TCS".
The nation's largest software exporter TCS on 19 April reported a 4.4 percent rise in March quarter net profit at Rs 6,904 crore.
TCS's $2.25 billion deal renewal from television ratings measurement company Nielsen, which now translates into more business every year for the company than in the past, also helped it better its growth.
The company also declared total dividend of Rs 50 per share, including Rs 29 per share final dividend and Rs 21 interim dividend for the fiscal under review (FY 2018), which translates into a record 5,000 per cent per annum.
Mumbai-based TCS, which started trading in 2004, is a unit of Tata Group, one of India's oldest companies that now sells cars, power, tea and chemicals through its various subsidiaries.