On Wednesday, IT giant Tata Consultancy Services (TCS) share prices went up by 2.3% to reach a new high of Rs 3,694.25. With this new surge, TCS market capitalization reached Rs. 13.5 trillion, becoming the second listed company to reach the milestone.
TCS share prices surged 15 per cent on BSE in the past month as compared to a 6% hike in S&P BSE Sensex. TCS is the second listed company overall market cap ranking, after Reliance Industries, which has a market capitalization of Rs. 14.5 trillion.
According to analysts, the company may benefit from a strong demand environment, acceleration in cloud adoption and digital transformation opportunities.
The company had a consolidated revenue of US $22.2 billion in the quarter that ended on March 2021. Analyst at Emkay Global Financial Services said in the Q1FY22 result update that “The company’s management also remains confident about the revenue growth trajectory in FY22 on broad-based demand, strong deal intake ($8.1 billion in Q1; 17 per cent YoY), healthy deal pipeline, and traction in the cloud, cyber security, analytics and enterprise application services.”
The analysts at HDFC securities told Business Standard that TCS sees exponential growth due to growth drivers like increased outsourcing (Europe), core transformation deals, and its focus on upstream/consulting business.