An employee walks past a signage for Tata Consultancy Services Ltd. (TCS) at the company’s Synergy Park campus in Hyderabad (Photographer: Namas Bhojani/Bloomberg) 

TCS Becomes India’s First Tech Company To Cross $100 Billion Market Cap

India just got its first $100 billion company in a decade.

Shares of Tata Consultancy Services Ltd. rose as much as 2 percent to an all-time high of Rs 3,470 apiece after the country’s largest software services provider beat fourth-quarter profit estimate. The sentiment was also upbeat as the flagship of the Tata group company announced a 1:1 bonus share issue.

The three-day rally in stock price helped the company to cross Rs 6.69 lakh crore ($100 billion) in market value. The company hit $100 billion in market capitalisation after it crossed Rs 3,447 per share, assuming the current value of the rupee at 66.2150 against the dollar.

N Chandrasekaran, former CEO of TCS and current chairman of Tata Sons attributed the recent rise in company’s earnings to its push towards digital transformation. “This is the start of the next bull run for TCS for sure,” he told BloombergQuint by phone.

“What is exciting for us is the whole business 4.0 journey and the great opportunity to be a digital partner of choice to our customers in their growth and transformation journey,” Managing Director and Chief Executive Officer Rajesh Gopinathan said in an emailed statement.

The company has gained more than 27 percent this year, compared with 1.1 percent gain in the S&P BSE Sensex Index.

In 2007, Reliance Industries Ltd., the telecoms-to-energy conglomerate controlled by billionaire Mukesh Ambani, was the first company to cross the $100 billion mark.

Also read: TCS Targets 10% Dollar Revenue Growth As Key Banking Vertical Begins To Recover

TCS Becomes India’s First Tech Company To Cross $100 Billion Market Cap

TCS’ result contrasted with that of closest rival Infosys Ltd., which last week delivered a disappointing outlook that hammered its stock.

Moreover, most brokerages expect TCS to clock healthy growth in the current financial year. “Definite possibility of double-digit revenue growth with robust deal wins and green-shoots in BFSI,” Edelweiss said in a research note post earnings.

Also read: In Charts: TCS Vs Infosys

Now, TCS is again valued more than the combined market capitalisation of the next four Indian software services companies. TCS first became bigger than the next four in April 2013, and has since fallen below or surpassed them in valuation. It again overtook their combined market cap on April 11.

TCS Becomes India’s First Tech Company To Cross $100 Billion Market Cap

A Quick Recap Of TCS' Journey From IPO to Now

  • 2004

The company prices its initial public offering at Rs 850 per share.

  • 2005

The market capitalisation of the company touched $10 billion-mark.

  • 2010

It took more than four years for the company to reach $25 billion on July 2010.

  • 2013

The market cap scaled to $50 billion in July for the first time.

  • 2014

The company reached $75 billion in market value by adding the next $25-billion in year.

  • 2018

TCS hits $100 billion-mark after company reports better-than-anticipated earnings.

(Corrects an earlier version that identified TCS as the first Indian company to reach $100-billion market capitalisation.)