TCS share price does a first; this is the big number it just hit today

Tata Consultancy Services (TCS), the country's largest software services firm, hit yet another fresh high on Friday with its market capitalisation (m-cap) crossing Rs 7 lakh crore mark. In numbers, it adds up to Rs 7,00,945.12 crore (at 10.00 am). The stock rallied as much as 1.9 per cent to touch its lifetime high of Rs 3,674. 

TCS share price gains came after the rupee hit a near 18-month low on Thursday, a trend which is largely seen as positive for export-focussed sectors. So far this year, TCS has rallied a whopping 35 per cent against just 2 per cent rally on Sensex. Since April 19, the day the IT major reported its March quarter earnings, the stock outperformed the market by surging 16 per cent. By comparison, the Sensex is up just 0.7 per cent during the same period. 

The IT firm reported a strong set of numbers in the March quarter, backed by all-round growth in key verticals and geographies, and digital services and solutions. The company posted double-digit revenue growth in dollar terms in Q4 for the first time in the last 12 quarters. 

Investors cheered also because the company’s board recommended bonus issue in the ratio of 1 equity share of Re 1 each for every 1 equity shares of Re 1 each held by the shareholders of the company as on the record date. The company has fixed June 2, 2018 as the record date for determining the entitlement of members to receive bonus shares in the ratio of 1:1. The stock will turn ex-bonus on Thursday, May 31, 2018.

WATCH ZEE BUSINESS VIDEO HERE

"TCS’ business outlook is clearly better in FY19E compared to FY18. The IT major’s broad-based growth and visibility across several verticals drives underlying confidence on business growth over FY18-FY20E. With Digital starting to contribute substantially, healthy growth in this segment will also move the needle more meaningfully," said brokerage Reliance Securities in a research note.  

"Among negatives, we await better revenue traction in BFSI. Nonetheless, we are enthused with the IT major’s positive growth outlook and stable margin expectations. We upgrade our target PE multiple to 22x to factor in improving growth profile, and upgrade the stock to BUY from HOLD," the brokerage added.