Mumbai, July 23: Tata Consultancy Services (TCS), India’s largest software services player, today became the first domestic company to surpass Rs 5 lakh crore in market capitalisation.
On a day when the key indices hit fresh records, the TCS scrip hit an all-time high of Rs 2,595 in intra-day trade following which it closed at Rs 2,586.90, a gain of Rs 55.85, or 2.21 per cent, over the last close.
The closing price put TCS’s market cap at Rs 5,06,703.34 crore, much higher than that of Oil and Natural Gas Corporation, which occupies the second spot with a figure of Rs 3,46,582.90 crore.
ONGC is followed by Reliance Industries, which at one point held the coveted top spot. The Mukesh Ambani-flagship now has a market cap of Rs 3,33,955.57 crore.
The Tata group company had posted a stellar performance in the first quarter of the current fiscal.
In fact TCS’s market cap is greater than the combined value of its four top rivals — Infosys, Wipro, HCL Technologies and Tech Mahindra. Their combined market cap stands at Rs 4,90,891.42 crore.
The Tata group company has achieved this feat 10 years after it got listed on the stock exchanges. Despite the valuation gap with some of its peers, many analysts continue to have a buy rating on the stock.
Experts such as Sarabjit Kour Nangra of Angel Broking attribute this optimism to the promising outlook given by the management after the first quarter numbers.
While TCS is pursuing large deals in terms of cumulative size, it has a healthy deal pipeline and there are initial signs of upturn in discretionary spending.
During the first quarter, TCS posted a net profit of Rs 5,058 crore, a growth of 26.9 per cent over the corresponding period of the previous year.
Meanwhile, both the Sensex and Nifty touched new highs today. The Sensex rose 121 points to end at 26147.33, while the Nifty rose 27.90 points to a record close of 7795.75, crossing its previous peak of 7787.15.