Shares of Tata Consultancy Services (TCS) on Monday surged over 4 per cent, following which the IT major became the first listed Indian company to hit market capitalisation of over Dollars 100 billion (Rs 6,80,912.10 crore).
The stock hit a new high of Rs 3,499, up 2.7% in intra-day trade, extending its Friday's 6.7% surge, as the company reported better-than-expected March quarter earnings in post market hours on Thursday.More news: IShares Micro-Cap ETF (IWC) Declines 0.35% for April 22
The 10% rise in the company's scrip in past two trading days helped it cross Rs 6.69 trillion ($101 billion) in market-cap at 09:55 am, the BSE data shows. In dollar terms, the company had its highest revenue growth in 14 quarters at 11.7 per cent. It means Rs 1 lakh invested in TCS IPO in 2004 is now worth almost Rs 14 lakh crore. The stock is now trading at Rs 3,509, up 3 percent.
At the end of Friday's trading session the IT major commanded a m-cap which was Rs 7,917.08 crore, just short of the United States $100 billion milestone at Rs 6,52,082.92 crore. The stock was the biggest gainer in both benchmark indices - BSE and NSE.More news: A Quiet Place continues to be biggest 'gorilla' at box office
Looking ahead, TCS expects a rebound in spending by its key banking, financial services and insurance (BFSI) clients this financial year. "We retain reduce as we find valuations expensive at around 20x FY20F and see risk to street expectations of double-digit constant currency (CC) revenue growth and flattish margins", the brokerage said in a note. The company also announced a 1:1 bonus and a Rs 29 final dividend that improved sentiments among investors.
"Rs 26,800 crore of cash has been returned to shareholders in dividends and buyback during the fiscal", added the company in the filing.More news: Gangster Abu Salem denied parole to get married
TCS net profit dipped by 1.7 per cent to Rs 25,826 crore for the financial year 2017-18, while revenue rose by 4.3 per cent to Rs 1.23 lakh crore. I always believed that the opportunity in the tech space for TCS is very large, the digital transformation is going to be a very reaping opportunity and we have been working on it as I have always maintained.