TCS’ market capitalisation is more than double its nearest competitor, Infosys. The TCS stock also hit an all-time high of Rs 2949.9 on Monday before closing 0.68 per cent higher at Rs 2,928.2. The stock has rallied 21 per cent in the past three months and 33 per cent over the past one year.
The company which was listed on August 25, 2004 at a market capitalisation of Rs 47,200 crore took two years to reach the Rs 1 lakh crore mark in September 2006, 10 years to reach Rs 5 lakh crore market-cap in July 2014 and 16 years to reach Rs 10 lakh crore on October 5, 2020.
The IT firm has initiated buyback of 5.33 crore shares on December 18, 2020, at a price of Rs 3,000 per share. The Rs 16,000-crore share buyback programme will close on January 1, 2021.
TCS which was the most valuable company in India in March this year, lost its number one position to Reliance Industries after the latter rallied sharply amid record fund raising for its Jio and retail platforms.
The market capitalisation difference between the two firms on September 10 was more than Rs 5.9 lakh crore. Since then, TCS has outperformed Reliance Industries which currently commands a market capitalisation of Rs 12.64 lakh crore.
TCS is a key beneficiary of the pandemic with most of the companies going for digital or cloud adoption. The company is likely to remain relatively better positioned given the uptick in the digital investment compared to its peers over the medium- to long-term, said analysts.
“Tata Consultancy Services has a historical track record of adapting to multiple business challenges and technology change cycles ahead of its peers,” said Mukul Garg, analyst, Motilal Oswal Financial Services.
“It (TCS) has consistently maintained its market leadership, best-in-class operational metrics, and high return ratios.”
