TCS 2nd Indian company after RIL to cross Rs 13 lakh crore m-cap

Mumbai: Seventeen years after it sold its stock for the first time in a relatively late public debut, Tata Consultancy Services crossed the Rs 13-lakh-crore mark in market value Tuesday, becoming only the second in the country to do so — after Reliance Industries.

The latest climb by India’s software bellwether after a relatively tepid run endorses emerging bullish views that the company stands to enhance its dominance in an environment where global clients are increasingly embarking on multi-year transformational projects with implications across revenue streams.

“A strong order book and a robust deal pipeline have led to strong structural growth, which will drive growth further,” Edelweiss said in a note Tuesday on the country’s most valued technology company. “Moreover, the company is gaining market share from small and big players. It will consistently expand an abundance of native capabilities, opening up new opportunities for technology-driven differentiation.”

Shares of TCS ended up 2.32 per cent at Rs 3,552.4 after hitting a record high of Rs 3,560.25 during the day. At the end of trading, TCS’ market capitalisation stood at Rs 13.14 lakh crore. Currently, the oil-to-telecom conglomerate, Reliance Industries, is valued at Rs 13.7 lakh crore.

Edelweiss has maintained a buy rating on TCS, with a target price of Rs 4,176 a share.

“TCS was underperforming until last month or so but there is renewed excitement around the IT sector deal wins and expectations of outperformance on the revenue side,” said Neerav Dalal, a research analyst at Maybank Kim Eng Securities. “TCS and Wipro are our top picks in the IT space.”

TCS had reported a 28.5 per cent year-on-year growth in its consolidated net profit to Rs 9,008 crore for the quarter ended June.

The company’s consolidated revenue for the quarter surged 18.5 per cent on year to Rs 45,411 crore.