On Wednesday, Tata Consultancy Services (TCS) surpassed the $200 billion market capitalization barrier, extending the stock’s winning streak this year.
TCS shares hit a new all-time high of Rs 3,980 before ending at Rs 3,955, up 1.8% from the previous day’s close. TCS’ stock has risen 35% this year amid a strong surge in IT equities. After the close, the Tata group flagship had a market capitalization of Rs 14.63 trillion ($199.2 billion).
Only Reliance Industries (RIL), with a market worth of Rs 15.81 trillion ($215 billion), has a larger market cap among domestically listed businesses. RIL became the first business to reach the $200 billion market capitalization mark earlier this month.
With the pandemic leading in an acceleration of digital transformation, the Indian IT sector has been on an upward trend. The improvements may be seen in the increase in the number of businesses. The same can be said for TCS, which has witnessed a significant increase in customer demand for its services.
The company’s sales increased by 18.5 percent year over year to Rs 45,411 crore in the first quarter of FY22. The deal signing was fueled by expansion across industries and verticals, with a total contract value of $8.1 billion. Profits have been rising at a healthy rate, allowing firms to reward shareholders through dividends, share buybacks, and other means.
