TCS First Indian Company To Cross Rs 5 Lakh Crore Mark In Market Capitalisation

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TCS First Indian Company To Cross Rs 5 Lakh Crore Mark In Market Capitalisation Tata Consultancy Services (TCS), India’s biggest software services exporter, crossed the Rs 5 lakh crore mark in market capitalisation on Wednesday (July 23). It is the first Indian company to achieve the feat. TCS has also become the second most valuable IT services company in the world ahead of Ireland's Accenture but behind the US-based IBM.
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The company’s market valuation reached Rs 5,03,148 crore (about $84 billion). It is the highest since its listing l0 years ago.

The software services firm's record market capitalisation is bigger than the combined market cap of the other four domestic IT players in the pecking order like Infosys ($31.7 billion), Wipro ($23.3 billion), HCL Technologies ($17.9 billion) and Tech Mahindra ($8.5 billion).

Also, TCS’s market cap is much bigger than the combined market cap of the other 31-listed Tata group companies' $57.2 billion. In term of the rankings, the Mumbai-based software company is followed by ONGC ($57.63 billion), Reliance Industries ($55.53 billion) and ITC ($46.62 billion).

Looking at the market value, shares of TCS have risen nearly 9% since the company announced robust first quarter FY 2015 earnings last. Several analysts believe FY15 will be eventful for TCS as its global customers increase spending on IT services. Also, the $13-billion IT firm won seven large deals in Q1 FY15.

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According to analysts, TCS' superior market valuation attributes to its outstanding financial performance and outpacing peers in the sector. TCS is one of the most expensive IT services stocks in the world. The company gets more than three-quarters of its revenues from the US. The company’s market cap is more than six times its revenues and 28 times its net profits in FY14. This would not only help in attracting top-notch investors, but will boost the global profile of TCS.
(Image: The Times of India)