Nearly a year after it attained the market capitalisation milestone of Rs 5 lakh crore, Tata Consultancy Services (TCS) now boasts twice the market value of Reliance Industries (RIL), once considered the ultimate representative of the Indian capital market, reports fe Bureau in Mumbai.
On Monday, the TCS share closed with gains of Rs 13.30 or 0.5% at Rs 2,593.70, representing a market capitalisation of Rs 5.08 crore. The RIL scrip, on the other hand, closed down by a similar extent at Rs 834.35, for a market value of Rs 2.7 lakh crore. At its peak, TCS commanded an m-cap of Rs 5.43 lakh crore.
Even as it toppled RIL to become India’s most valued firm more than three years ago, to grow twofold in market capitalisation compared to the oil and gas major is not an ordinary feat given that it has happened just a decade after TCS made its secondary market debut. RIL was listed on exchanges in the late 1970s and was regarded the bluest of Indian blue chips, till it began to fail outshining benchmarks after the global financial crisis. Unlike TCS, which has posted a CAGR of 25% between 2007 and 2014, RIL has underperformed the market each year since 2008.
Earlier, in the quarter ended December 2014, TCS also briefly replaced RIL as the country’s most profitable company when it reported net earnings of Rs 5,328 crore. Again unlike RIL, for which other income accounts for more than 35% of its net profit, most of TCS’ profit was driven by core operations with investment-led other income representing only 18% on average in the last four quarters.
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