TCS shares hit record high on strong Q4 earnings

TCS shares hit record high on strong Q4 earnings

On BSE, the stock is now up 5.3% at Rs 3357.

Mumbai: Tata Consultancy Services (TCS) is headed for the record books as it could soon be the first listed Indian company to have a market cap of $100 billion. TCS market valuation had in January 24 this year surged past the Rs 6 lakh crore mark.

Bulk deal in Elpro InternationalShares of the company ended 7 per cent higher at Rs 47.65 apiece on BSE after almost 1.8 per cent of equity changed hands in a bulk deal. But for it enter the magical $100-billion club, the scrip has to breach '4,337 per share, assuming the current value of the rupee at 66.05 against the United States dollar. If not for the weakness in the rupee, TCS' market cap would have breached the $100-billion mark.

Shares of TCS on Friday surged almost 7 percent, adding Rs 41,301 crore to its market valuation, after the company reported a 4.4 percent rise in March quarter net profit and guided towards a better show in fiscal 2019.

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On the equity volume front, 2.76 lakh shares of the company were traded on BSE and over 40 lakh shares changed hands on NSE during the day. It has given out close to Rs 26,000 crore to the shareholders in dividends and bonuses in the year.

The stock was the biggest gainer on both Sensex and Nifty.

The 27 listed companies of the Tata group now have a combined market capitalisation of Rs 10.7 trillion, up 11.2 per cent during the current calendar year. This period has also seen the company snatch away the bellwether title from Infosys through consistent performance.

Other analysts too remain upbeat on the company, more so with the share of digital revenues continuing to rise. "We have revised our earnings estimates for 2018-19E/2019-20E on account of the management's positive demand outlook for 2018-19. Though the revenues have not started flowing in, early client discussions show that there is not much of stress left in the system and we hope that will translate into better spend through the course of this year", said Gopinathan.

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In constant currency terms, TCS reported a 6.7% growth, as against the 5.8% growth that Infosys managed.

However, analysts at Edelweiss Securities were more cautious given its current valuations.

"As our customers move forward in their Business 4.0 journeys, we are helping them leverage digital technologies to drive growth and transformation agendas", said Gopinathan.

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