India will soon get its first $100 billion-dollar company.
Shares of Tata Consultancy Services Ltd rose as much as 6.7 percent, the most since April 2012, to Rs 3,406 apiece after the country’s largest software services provider beat fourth quarter profit estimate. The sentiment was also upbeat as the flagship of the Tata group company announced a 1:1 bonus share issue.
The surge in stock price helped the company to cross Rs 6.5 lakh crore ($98.5 billion) in market value. The company will hit $100 billion in market capitalisation once it crosses Rs 3,447 per share, assuming the current value of the rupee at 66.05 against the dollar.
TCS’ result contrasted with that of closest rival Infosys Ltd, which last week delivered a disappointing outlook that hammered its stock.
Moreover, most brokerages expect TCS to clock healthy growth in the current financial year. “Definite possibility of double-digit revenue growth with robust deal wins and green-shoots in BFSI,” Edelweiss said in a research note post earnings.
A Quick Recap Of TCS' Journey From IPO to Now
- 2004
The company prices its initial public offering at Rs 850 per share.
- 2005
The market capitalisation of the company touched the $10 billion-mark.
- 2010
It took more than four years for the company to reach $25 billion on July 2010.
- 2013
The market cap scaled to $50 billion in July for the first time.
- 2014
The company reached $75 billion in market value by adding the next $25-billion in in year.
- 2018
TCS closes in on $100 billion-mark after company reports better-than-anticipated earnings.
(This article was first published on BloombergQuint.)
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