India’s largest IT services provider, Tata Consultancy Services (TCS), has crossed Rs.8 lakh crore in market capitalisation after its share price increased by 1.86% in today’s trading (September 4). With this valuation, TCS has become the second company ever in India to cross the Rs.8 lakh crore market capitalisation after Reliance Industries Ltd. (RIL). Since RIL’s market capitalisation has declined recently, TCS is currently the most valued Indian company.
On Friday (August 31st), TCS briefly crossed the Rs.8 lakh crore market capitalisation. Despite the volatile trading, TCS managed to surpass the mark once again today and became the most valued company in India. TCS ended today’s trading at Rs.2,093.20 compared to yesterday’s closing price of Rs.2,054.95.
TCS is one of the best performing stocks in both Nifty and Sensex. The company has witnessed a growth of more than 57% in the first eight months of this year. The growth of the company can be attributed to its exceptional industry performance and the profits generated from it. The stellar financial performance of the company has also made it announce a share buyback program to repurchase Rs.16,000 crore worth of its shares.
The company announced the share buyback in June stating that it would repurchase about 7.6 crore shares at a price of Rs.2,100 per share. Even at today’s closing price, this buyback price represents a premium to the investors of this company. The company is all set to initiate the buyback on September 6th, and this is expected to close on September 21st.
For the fourth quarter of the previous fiscal year, the company declared a profit of Rs.6,904 crore. The company also reported a 3.8% increase in its revenues. Following this solid financial performance, the company also announced a share bonus of 1:1 for its existing shareholders.
Source: Financial Express