Buy TCS shares! 1 lakh has turned into Rs 14.4 lakh; Rs 3.5 lakh gains still to come
Tata Consultancy Services became India's first company in technology segment to cross $100 billion mark in terms of market capitalisation. Reliance Industries is the only other company in India to have crossed the $100 bn mark and that was way back in 2007.
Even as TCS share price is trading at a record high, analysts are still telling investors to buy the stock as the IT major is well-placed to achieve double-digit growth in a couple of years that will reflect on the share price. TCS, which became India's first company in technology segment to cross $100 billion mark in terms of market capitalisation, rallied as much as 4.42 per cent to hit its lifetime high of Rs 3557 on the BSE. Reliance Industries is the only other company in India to have crossed the $100 bn mark and that was way back in 2007. Nearly 40 per cent depreciation in rupee against dollar over the last ten years shrunk RIL's market value to $88.8 billion, as of Friday's close.
AK Prabhakar of IDBI Capital is bullish on TCS and expects the stock to hit Rs 4200-4500 in next two-three years, an upside of 20 per cent to 25 per cent.
Jay Anand Thakkar, AVP - Equity Research, Anand Rathi Securities sees a target price of Rs 3700-3800 on TCS in next 12 months. However, Edelweiss Securities is cautious on the stock, but positive on the company. "TCS’ premium valuations restrain us from recommending it in spite of the company’s best execution and market leadership," the brokerage said. Meanwhile, N Chandrasekaran, Chairman, Tata Sons thanked the TCS shareholders for the enormous faith and the support they gave all these years. "it is a special moment I am really proud of it. TCS will continue to prosper and we are extremely focussed on continuously creating value," Chandrasekaran told to ET Now.
Here are five interesting takeaways as TCS hit $100 billion mark:
1) The market capitalisation of TCS at Rs 6.8 lakh crore is just equal to market value of rest of all IT companies on Nifty IT index put together. Yes, that includes Infosys, HCL Tech, and Wipro!
|Company||Mkt Cap (Rs crore)|
2) TCS market value is now higher than that of its global peer Accenture. The market value of NYSE-listed Fortune-500 company stood at $96.82 billion as of April 20, 2018.
3) Rs 1 lakh invested in TCS IPO at Rs 247 per share has turned into Rs 14.5 lakh i.e. the stock has rallied by a whopping 14 times since August 25, 2004, the day TCS listed on the stock exchange.
4) It took TCS just four years to grow from $75 billion to $100 billion.
5) Globally there are only 63 companies that are trading above the market value of over $100 billion. With today's record surge in market cap, TCS has now joined the elite league of 64 companies that are trading above the market value of over $100 billion. These include the likes of Apple, Alphabet, Amazon, Warren Buffett's Berkshire Hathaway, Facebook etc.
6) Market value of TCS alone beats the market cap of 559 listed Pakistani firm put together. Total 559 companies listed on Pakistan Stock Exchange, had a combined m-cap of $80 billion (or 9,325,897.91 Pakistani rupee) as of April 19, 2018, data available with Pakistan Stock Exchange showed.
Source: Pakistan Stock Exchange
The big takeaway for investors is that there is still a lot more money to be made out of TCS!
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