4 IT stocks that have given highest returns since the listing day
While Infosys and Wipro have returned over 100 percent in the last year, rivals HCL Tech and TCS have given 70 percent and 59 percent returns, respectively.
The Nifty IT index has given a return of over 100 percent in the last year led by heavyweights TCS, Infosys, Wipro and HCL Tech. The index has outperformed the Nifty50, which rose 70 percent in the same period. While Infosys and Wipro have returned over 100 percent in the last year, their competitors are not far behind, with HCL Tech and TCS returning 70 percent and 59 percent, respectively.
TCS: The IT major since its listing on August 25, 2004 has given a whopping return of 3,000 percent. Tata Sons chairman N Chandrasekaran said recently, "Looking back, if you had invested in one TCS share at the issue price of Rs 850 in the IPO in 2004, the value of that investment today in a period of 17 years, would be around Rs 28,000, a return of over 3,000 percent on your investment.” The market cap of TCS as on June 11, 2021 stands at 3,38,141.38 crore and is the market leader among its peers. It is a low beta stock, with mutual funds increasing holdings from 2.73 percent to 2.85 percent in March 2021 quarter. Its promoters have also increased holdings from 72.05 percent to 72.19 percent in March 2021 quarter.
Infosys: Since its lisiting on May 2, 1995 at 88 paise a piece, the IT services firm has surged 1,617 times. Balance sheets of Infosys have remained strong and high on liquidity. It has stepped up on dividends and buybacks over the last three years. Despite that, its balance sheet remains highly liquid. The company is fairly comfortable with the annual growth guidance that it gave for the current financial year and doesn't see reasons for a rethink, a top executive told Moneycontrol. Infosys's market cap stands at Rs 6,17,500 crore, with a price to book ratiowhich is above the industry median. It is also a low beta stock. FIIs increased holdings from 32.26 percent to 32.67 percent in March 2021 quarter.
Wipro: The software company made its market debut on January 25, 1991 and has since returned 4261.5 times. The company's market-cap stands at Rs 3,05,192 crore. Mutual Funds have increased holdings from 2.2 percent to 2.33 percent in the March 2021 quarter. The number of MF schemes also increased from 30 to 32 in March 2021 quarter. Institutional Investors have increased holdings from 14.54 percent to 15.36 percent in the same period.
HCL Technologies: The information technology services and consulting company after listing on the exchanges on January 11, 2000 has given a return of over 800 percent. The market cap as of June 11, 2021 stands at Rs 2,66,848.26 crore and is a low beta stock. The price to book ratio is above the industry median with TTM PE Ratio also above the industry median. Mutual Funds have increased holdings from 6.6 percent to 6.79 percent in March 2021 quarter, with the number of FII investors up from 1,222 to 12,43 in the same period.