Tata Consultancy Services, the IT arm of Tata Group having a presence across 46 countries has become the first Indian IT company to cross $100 billion market capitalisation.
Today, their shares dipped a bit, which made their total market cap less than$100 billion, but by the end of the day’s trading, their shares are expected to again cross $100 billion mark.
What exactly is a market cap, and how TCS was able to cross $100 billion mark?
Have they really beaten Reliance Industries? Here are 6 interesting facts about TCS’s remarkable ascent to the top:
Contents
Fact #1: $100 Billion Mark Breached By TCS
For the first time ever in the Indian stock market, a company has able to cross $100 billion mark, and this achievement of TCS is an unprecedented one.
On Monday, shares of TCS was traded at an all time high of Rs 3,557, which helped them to breach $100 billion mark.
On Tuesday, TCS’s shares were being traded at Rs 3,412.95, which is a marginal dip of 1%, which made their total market cap less than $100 billion, but still, as per INR, the biggest Indian company.
In the last 14 years, TCS shares have given a return of 1,260% to the investor.
Fact #2: What Made TCS Skyrocket Market Cap?
For the quarter ending March 31, 2018, TCS posted exceptionally good financial results, which triggered a positive rally for the company. Ever since that, the share prices of TCS has climbed more than 5%, taking their total valuation to $100 billion on Monday.
Yesterday alone, more than 16 lakh shares of TCS were traded on both BSE and NSE combined.
Fact #3: Has TCS Beat Reliance?
Yes. An unprecedented surge in share value of TCS has helped them to become the largest Indian company now, beating Reliance Industries or RIL by a fair margin.
On Monday evening, TCS’s total market capital was $100 billion or Rs 6,80,528 crore, compared to Rs 5,93,251 crore market capital of Reliance Industries, and 5,15,328 crore of Aditya Puri-led HDFC Bank.
Fact #4: Is TCS The 1st Indian Company To Cross $100 Billion Mark?
No. This is not true. In 2007, Reliance Industries had become the first Indian company to breach $100 billion mark in market capital, when their shares took an astonishing jump in prices.
On October 18th, 2007, more than 10.57 lakh shares of RIL were traded, to make them India’s first $100 billion company.
Face #5: What Is Market Capital?
Market capital is the value of a company in the share market, based on the current price of the stock. The market capital or MCap is calculated by multiplying the total number of shares of a company, with the value of each share.
Market Capital depends not on exact revenues or profit of the company, but based on the shares being traded on that particular day.
For the quarter ended March 31, 2018, TCS reported revenues of Rs 6,925 crore, which was 4.5% more than last quarter.
Fact #6: TCS World Ranking
Globally, TCS has now entered the top 100 companies list, and is ranked #97. Apple is world’s most valuable company based on market cap, with a total valuation of $877 billion. Google is at #2 with $757 billion valuation, and Amazon is at #3 with $755 billion valuation.
We will keep you updated, as we receive more news regarding TCS total market cap, and their journey towards becoming a $100 billion company.