Tata Consultancy Services (TCS) on Thursday surpassed Accenture to become the world's most-valuable information technology (IT) firm for the first time. As on October 8 closing price of Rs 2,825, the market capitalisation of TCS stood at $144.7 billion or Rs 10.6 lakh crore compared to Accenture's $143.1 billion or Rs 10.52 lakh crore. IBM stood at third with m-cap of $110.5 billion.
RIL leads the list of listed companies in India with m-cap of nearly $215 billion. TCS now has a P/E ratio of 34 times as against Accenture's 29 times. IBM has a P/E of less than 14 times.
The shares of TCS rallied 3 per cent on Thursday after its board approved a share buyback at Rs 3,000 per share. In 2017 and 2018 too, TCS had undertaken buyback offers of similar sizes. The board of directors of the company has approved a proposal to buyback up to 5,33,33,333 equity shares of the company for an aggregate amount not exceeding Rs 16,000 crore, being 1.42 per cent of the total paid-up equity share capital at Rs 3,000 per equity share, TCS said in a regulatory filing on Wednesday.
In the last 14 days alone, the company's share price has gained over 20 per cent. "TCS impressed with revenue growth of 4.8 per cent quarter-on-quarter. Broad-based growth across geographies and verticals indicates healthy recovery across segments," said a report by Motilal Oswal Research.
Meanwhile, India's largest software exporter on Wednesday reported a profit after tax of Rs 7,475 crore for the quarter ended September 2020, posting a 6.7 percent sequential growth. Consolidated revenue from operations for the quarter surged by 4.7 percent sequentially to Rs 40,135 crore.
Shares of TCS ended the trade on Friday at Rs 2,811, down 14.70 points or 0.52 per cent on NSE as against the previous close.