Mumbai: Tata Consultancy Services Ltd (TCS), nation’s largest information technology (IT) services firm, on Monday crossed the $100-billion market capitalization milestone.

TCS has also overtaken outsourcing and consultancy giant Accenture Plc which has a market cap of $98.20 billion. Accenture ended fiscal 2018 with revenues of $34.90 billion, far higher than TCS’s annual revenue of $19.1 billion.

TCS holds the first position among the most valuable international pure play technology services firms. INTL Business Machines Corp. (IBM) has market cap of $133.48 billion, but it has both hardware and technology services operations.

With this, TCS joined the ranks of the world’s 100 most valued organizations and now ranks 97th. According to Bloomberg data, currently there are 96 companies which have market cap of over $100 billion. The last Indian name to cross that threshold—in 2007—was Reliance Industries Ltd, a Bloomberg report said.

Currently, RIL’s market cap is at $89.36 billion.

The recent surge in TCS shares was triggered by better than expected earnings reported on Thursday after 13 quarters of under-performance. TCS announced a bonus of 1:1 and recommended a final dividend of Rs29 a share also improved sentiment.

TCS shares rose 2.65% on Monday to Rs3,496.

TCS dollar revenue increased 3.9% (2% in constant currency terms) to $4.97 billion in the quarter. Net profit improved 5.7% to $1.07 billion in the March quarter from $1.01 billion in the preceding three months while operating margin improved 20 basis points to 25.4% from 25.2% in the October-December period.

“TCS continues to execute solidly for a company of its size. Its recent deal wins have also been strong, and it appears to be transitioning to digital services well. However, even with growth acceleration in FY19, we expect earnings CAGR of around 10-11%," said Credit Suisse in a 19 April note.

The brokerage firm has increased its target price to Rs2,950 from Rs2,550 earlier. It expects revenue growth to accelerate from 6.7% in fiscal 2018 to 9.9% in FY19.

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