TCS market cap hits ₹15 lakh crore as stock touches new all-time high

Tata Consultancy Services (TCS), the country's largest IT firm, achieved a historic milestone in today's trading session by reaching a market capitalisation of ₹15 lakh crore, a first-time achievement for the company. The Tata Group is the second-most valuable Indian firm.

In today's trading session, TCS shares gained 4% to achieve a new peak of ₹4,135 apiece, surpassing their previous best of ₹4,043. Notably, the stock crossed the ₹4,000 mark after 12 months. From the October low of ₹2,926, the stock has seen a sharp recovery, and it is up by nearly 40% to date.

Taking the stock's all-time high price into account, the company's m-cap touched ₹15.13 lakh crore.

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Today's rally came after the company informed investors through an exchange filing on Monday that it won a new deal from Europ Assistance, a leading global assistance and travel insurance company, to help reimagine its global IT operating model for enhanced resilience, scalability, and user experience.

"The new deal will see Tata Consultancy Services provide end-to-end enterprise IT application services, leveraging its delivery centres in Europe and across all geographies where Europ Assistance operates," the company said in its exchange filing.

"The company’s AI platform, ignio AIOps, will be used to transform Europ Assistance’s IT operations, enhancing resilience, scalability, and agility. Powered by AI and ML, the solution will provide Europ Assistance with actionable insights into its technology stack, improving productivity and availability," TCS further said. 

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In January 2024, the company announced a 15-year expansion of its partnership with Aviva, the UK’s leading insurance, wealth, and retirement provider, to transform Aviva’s UK Life business and enhance the customer experience by leveraging the TCS BaNCS-based platform.

Looking at the company's financials, the company posted a 2.48% QoQ drop in its consolidated net profit to ₹11,097 crore in Q3 FY23. In the preceding quarter (Q2 FY24), it reported a net profit of ₹11,380 crore.

Comparing the year-on-year (YoY) performance, there was a 2% improvement in net profit. In the same quarter a year ago, the company recorded a net profit of ₹10,883 crore. During the quarter, the company's net profit was affected by a one-time charge of ₹958 crore, allocated towards the settlement of a legal claim. 

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TCS reported a TCV of $8.1 billion in Q3, marking a decline from the $11.2 billion reported in the preceding quarter (Q2FY24) and missing the company's quarterly guidance range of $9–10 billion.

Other rising stars in the group

Tata Group stocks are currently witnessing a notable upswing, with several major companies showing robust performance alongside TCS. Tata Motors, in particular, stands out. After concluding CY23 with a multi-bagger return of 101%, making it the only Nifty 50 stock to achieve this feat in the year, the positive momentum continues into CY24, with the stock already delivering an impressive return of nearly 20%.

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Marking a significant milestone, Tata Motors' market capitalisation has recently crossed ₹3 lakh crore, surpassing Maruti Suzuki's and reclaiming its position as the country’s most-valued automotive company after seven years. 

Additionally, other Tata Group stocks, including Trent, Titan, Tata Power, and Tata Consumer Products are also performing well on exchanges and these four companies achieved market capitalisation of ₹one lakh crore in the last one-year period. 

Disclaimer: We advise investors to check with certified experts before making any investment decisions.