INSUBCONTINENT EXCLUSIVE:
The software major Tata Consultancy Services (TCS) on Monday became the first company after Reliance Industries (RIL) in India to cross the
market capitalisation (m-cap) of Rs 10 trillion.
The Tata group cash cow and crown jewel closed Monday with a record m-cap of Rs 10.16
trillion, up 7.3 per cent for the day
when it was valued at around 35x its earnings.
The rally has been fuelled by expectation of a better-than-expected earnings by TCS and other
at a P/E multiple of 21.2x at the end of March this year and 25x at the end of December 2019.TCS came out with its initial public offer in
other tech peers such as Infosys and Wipro, has been one of the top performers on the bourses since the beginning of September
TCS is up 20 per cent since the beginning of September
Wipro is up 23 per cent, while Infosys is up 13 per cent during the same period
Together, the top five IT services exporters have seen 18 per cent rise in their m-cap during the period.
With this rally, IT companies are
now the biggest contributor on the bourses after RIL.
TCS has added nearly Rs 3.3 trillion to its m-cap since the end of March this year and
is up nearly 49 per cent during the period.
The company has accounted for 13.2 per cent of the rise in the combined m-cap of all Nifty50
companies since the end of March this year
a third of the rise on the index during the period
Its m-cap is up 112 per cent since the end of March this year, or Rs 7.9 trillion.
The five IT companies together have added Rs 7.14
trillion to their m-cap since the end of March, accounting for 29 per cent of the rise on the index during the period.TheIndianSubcontinent
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