{"id":1302523,"date":"2025-11-14T09:03:30","date_gmt":"2025-11-14T03:33:30","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1302523"},"modified":"2025-11-14T09:04:01","modified_gmt":"2025-11-14T03:34:01","slug":"tcs-is-now-less-valuable-than-infosys-hcl-14-years-reign-ends","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/tcs-is-now-less-valuable-than-infosys-hcl-14-years-reign-ends\/","title":{"rendered":"TCS Is Now Less Valuable Than Infosys, HCL: 14 Years Reign Ends"},"content":{"rendered":"\n

After holding the IT industry\u2019s bellwether position for more than a decade, now the information-technology (IT) major Tata Consultancy Services\u2019 (TCS\u2019) equity valuation has slipped below its rivals like Infosys and HCLTech.<\/p>\n\n\n\n

\"TCS<\/figure>\n\n\n\n

TCS Loosing Valuation Premium To Its Peers<\/strong><\/p>\n\n\n\n

It appears that the country’s industry major, Tata Consultancy Services, has lost its long-held valuation premium compared to its peers for the first time in nearly 14 years.<\/p>\n\n\n\n

There was a time when IT major was regarded as the industry\u2019s benchmark for performance and pricing power but it has changed as the company is now trading at a lower earnings multiple than its closest rivals.<\/p>\n\n\n\n

Cobsidering the latest trend, TCS\u2019s trailing price-to-earnings (P\/E) multiple has slipped to 22.5 times again below Infosys\u2019 22.9 times and HCLTech\u2019s 25.5 times.<\/p>\n\n\n\n

This is much below that it’s earlier performance as for over a decade, TCS commanded an average P\/E multiple of 25.5 times between 2011 and early 2025 which is roughly a 15 per cent premium to the industry average of 22.2 times.<\/p>\n\n\n\n

This reversal marks a significant shift in India\u2019s IT landscape from the experts point of view.<\/p>\n\n\n\n

The fall stems from TCS\u2019s slower profit growth and margin contraction relative to peers.<\/p>\n\n\n\n

Affecting Market Share & Capitalization <\/strong><\/p>\n\n\n\n

Not only this, the company\u2019s market share among the top five listed IT firms has also eroded as per the media report<\/a>.<\/p>\n\n\n\n

Presently TCS accounts for about 43.4 per cent of the group\u2019s combined market capitalisation,  which is much down from the earlier 55 percent during March 2020.<\/p>\n\n\n\n

Movie ahead, TCS\u2019s market capitalization  stands at \u20b911.3 trillion at present in comparison with combined valuation of the top five IT firms at \u20b926.1 trillion.<\/p>\n\n\n\n

The IT major has lost nearly 27 per cent of its market value after reaching a record high of \u20b915.44 trillion during September last year.<\/p>\n\n\n\n

The group\u2019s overall market capitalisation has fallen about 20 per cent from its December 2024 peak.<\/p>\n\n\n\n

Considering the latest revelation, TCS\u2019s valuation derating has outpaced that of its peers. <\/p>\n\n\n\n

TCS\u2019s valuation slide reflects investor concern over its earnings outlook said G Chokkalingam, founder and chief executive officer of Equinomics Research & Advisory Services.<\/p>\n\n\n\n

Further adding, \u201cIn recent quarters TCS reported a much sharper slowdown in profit growth and margin contraction than its peers. Investors expect this trend to continue, leading to a decline in TCS valuation.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

After holding the IT industry\u2019s bellwether position for more than a decade, now the information-technology (IT) major Tata Consultancy Services\u2019 (TCS\u2019) equity valuation has slipped below its rivals like Infosys and HCLTech. TCS Loosing Valuation Premium To Its Peers It appears that the country’s industry major, Tata Consultancy Services, has lost its long-held valuation premium […]<\/p>\n","protected":false},"author":30,"featured_media":1302531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[347,92],"class_list":["post-1302523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-hcl","tag-tcs"],"acf":[],"yoast_head":"\nTCS Is Now Less Valuable Than Infosys, HCL: 14 Years Reign Ends - Trak.in - Indian Business of Tech, Mobile & Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/tcs-is-now-less-valuable-than-infosys-hcl-14-years-reign-ends\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TCS Is Now Less Valuable Than Infosys, HCL: 14 Years Reign Ends - Trak.in - Indian Business of Tech, Mobile & Startups\" \/>\n<meta property=\"og:description\" content=\"After holding the IT industry\u2019s bellwether position for more than a decade, now the information-technology (IT) major Tata Consultancy Services\u2019 (TCS\u2019) equity valuation has slipped below its rivals like Infosys and HCLTech. 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