TCS: Biggest value creator among top IT companies

Investors who bought shares worth Rs1 lakh of TCS on August 25, 2004, the day the software services behemoth was listed, would have seen their investment soar to Rs7 lakh in about nine years — an impressive return of 24% on an annual basis.

In contrast, similar investment in the Sensex would have earned an annual return of only about 17%. Returns from TCS stock would have outpaced those from the other top-tier software exporters such as Infosys (17%), Wipro (11%), and HCL Technologies (22% ).

Apart from capital gains, those who invested in TCS right from day one would have gained much more in terms of higher dividends.

Considering a share of Rs10 for the purpose of comparison, TCS has distributed Rs1,510 in dividend per share since August 2004, way higher than Infosys’ Rs597.5, Wipro’s Rs 255, and HCL Tech’s Rs388.