While the Tata Group flagship's valuation at Monday's close stood at $169.25 billion, Accenture’s m-cap was at $168.68 billion. In October, TCS had zoomed past Accenture to become the most valuable IT services company in the world
Mumbai: Tata Consultancy Services Ltd (TCS) has once again become the world’s most-valued information technology company with a market capitalisation of $169.25 billion. The company on Monday surpassed Accenture to hold the top spot once again.
While the Tata Group flagship's valuation at Monday's close of trade stood at $169.25 billion, Accenture’s m-cap was at $168.68 billion, according to Bloomberg data. In October, TCS had zoomed past Accenture to become the most valuable IT services company in the world.
TCS' shares closed at ₹3290.20 on the Sensex today, down 0.40% from its previous close. The benchmark index lost 1.09% to close at 48347.59 points.
In the domestic market, TCS surpassed Reliance Industries Ltd to become the country's most-valued firm by market capitalisation.
After today’s close, the market capitalisation of TCS was at ₹12,34,609.62 crore while that of Reliance Industries Ltd (RIL) stood at ₹12,29,661.32 crore on the BSE.
TCS, the country's largest software exporter, reported a 7% year-on-year rise in its consolidated net profit at ₹8,701 crore for the quarter ended December, against a consolidated net profit of ₹8,118 crore in same quarter of last financial year.
Revenue for the quarter rose 5.42% YoY to ₹42,015 crore compared with ₹39,854 crore in the same quarter last year.
This is not the first time that the company has raced ahead of its competitors. In April 2018, TCS reached the $100 billion valuation mark and overtook Accenture’s pinnacle position in the market.
Brokerages have raised target prices on Tata Consultancy Services after the company reported better-than-expected results for the December quarter.
“The company has returned to positive growth zone on YoY basis and management is confident of regaining double-digit growth trajectory," said Edelweiss, raising the target price to ₹4,176 from ₹4,000.
Axis Capital has maintained add and raised target price to ₹3,400 from ₹3,200. Motilal Oswal is neutral with an unchanged target price of ₹3,175. Emkay has raised the target price to ₹3,150 from ₹3,000 while retaining a 'hold' on the stock. Kotak Institutional has maintained reduce rating but raised target price to ₹3070 from ₹2920.
Technology companies were among the worst hit after the covid-19 pandemic stalled trade and forced employees to work from home, raising costs. The firms even lost billings as they generate most of their business overseas. The sector, however, rebounded in the second quarter, aided by large deal wins and client spending on cloud computing, artificial intelligence and internet of things as businesses moved online. TCS reported deal wins worth $6.8 billion in the quarter ended December.