Tata Consultancy Services Ltd's market capitalisation surged past ₹11 trillion on Monday, making it the second Indian firm after Reliance Industries Ltd to achieve this milestone.
Shares of TCS jumped nearly 1.2% intraday to hit an all-time high of ₹2942 a piece on the BSE with a market capitalisation of ₹11.03 trillion. So far, this year, the scrip has surged 36%.
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Mukesh Ambani-led Reliance Industries Ltd remains India's most valued company with an mcap of ₹12.75 trillion.
Of the 47 brokerages tracking TCS, 26 have recommend buy, 14 have maintained sell, while 7 have put hold rating on the stock, according to Bloomberg.
The firm will announce its earnings on 8 January.
The recent surge in TCS stock has been led by a rally in IT firms after Infosys and Wipro recently won multi-million dollar deals with German firms.
Pent-up demand from covid-19, returning in the form of large IT outsourcing contracts, and underlying business transformation are key strengths TCS, analysts said.
Last month, TCS shareholders had approved a proposal by the company to buy back up to 53.33 million equity shares at ₹3,000 a share for an aggregate amount not exceeding ₹16,000 crore. The buyback started on 18 December and will close on 1 January.
"Digitalization at scale and COVID-19’s acceleration of Work From Anywhere has boosted technology demand across industry verticals and geographies. Moreover, we note that IT outsourcing has seen strong pick-ups (lasting at least two years) after previous crises (such as Y2K and the GFC). These factors support our forecast of a third wave of IT outsourcing in FY21-23E," said Goldman Sachs in a note to its investors
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