TCS beats Accenture to become the world’s most valuable IT services company — but this not the first time it has raced ahead
Tata Consultancy Services(TCS) isn’t just the most valued IT services company in India, but globally too after its share price hit a new high on Thursday.
- TCS is now worth over $144 billion, surpassing
Accenturemarket capitalisation of $143 billion.
- The last time TCS beat out Accenture was in 2018, but IBM was leading the market at the time.
Back in 2018, IBM was at the top of the market with 300% more revenue than TCS, followed by Accenture in second place.
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However, in April that year, TCS touched the $100 billion valuation mark and overtook Accenture’s market cap.
AdvertisementNow the tables have switched, with IBM in third place. TCS is worth $144.73 billion on the Bombay Stock Exchange (BSE), and Accenture’s market capitalisation on NASDAQ is a sliver lower at $143.4 billion.
TCS’ stock closed over 3% higher on Thursday, October 8.
“This is very commendable as almost all of its performance has come on the back organic growth, low employee attrition and high EBIT margins,” said Nirmal Bang in its report.
IT stocks on a tear
IT stocks have been rallying since the Indian IT services behemoth announced its second-quarter earnings on Tuesday. In a strong quarter, TCS quarterly revenue was up 4.8%, and profit grew by nearly 7% over the last three months.
The company’s board of directors also approved a share buyback worth ₹16,000 crore, a move which some expect other IT industries to follow. Wipro has already announced that it has already put a proposal up in front of its directors that will be discussed during the October 13 meeting, ahead of its earnings.
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