TCS Becomes 2nd Indian Firm After Reliance to Clock Rs 8 Trillion Market Cap
The rise of TCS at the stock market comes in the backdrop of the company's unprecedented share buyback offer, which ends on September 21.
New Delhi, Sept 4: IT giant Tata Consultancy Services (TCS) has become the 2nd Indian firm to clock Rs 8 trillion mark. The feat was earlier achieved by Reliance Industries Ltd (RIL), headed by India's topmost billionaire Mukesh Ambani.
The rise of TCS at the stock market comes in the backdrop of the company's unprecedented share buyback offer, which ends on September 21. Investors in TCS could earn up to 17 per cent premium on their shares in the buyback scheme.
Notably, the stocks of TCS have been strengthening since the onset of 2018, with an accumulated surge of 54.7 per cent being recorded so far. A weakening rupee, experts said, has boosted the IT stocks with TCS being among the major beneficiaries.
According to 50 market analysts associated with the Bloomberg, 22 said the investors should "buy" more shares, whereas, 20 recommended to "hold" on, claiming that the rates would rise further. Only eight experts said "selling off" at this point would be the most profitable option.
TCS insiders are optimist of the future being more bright, as the company has recorded a 4.1 per cent revenue growth in Q1 -- higher than the revenue growth registered in the eight preceding quarters.
According to the July report of Edelweiss Securities, TCS is set to benefit in the short-term, as well as the long-term, due to "growing demand for offshore IT services". The report further added that TCS has perfectly poised itself in the market due to error-free handling of mission-critical projects.
(The above story first appeared on LatestLY on Sep 04, 2018 03:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).