TCS Has Beaten IBM, Reliance In Valuation; About To Overtake Adobe, SAP At $121 Billion Market Capital

While in recent news in the tech world, the homegrown Mumbai based IT giant Tata Consultancy Services (TCS) on Monday surpassed the global tech giant IBM in terms of market capitalization. The market capitalization of companies fluctuates everyday due to changes in their stock prices. So its good to know that TCS took over IBM on Monday.

What’s interesting here is that in a similar feat, TCS also took over the conglomerate Reliance Industries Limited (RIL) on the same day, scoring the spot of the most valued Indian company.

TCS’s Victory Flag Over IBM

In early trade, TCS recorded a market capitalization share of $120 billion, i.e. Rs 8.37 lakh crore on Monday. IBM recorded the same for $119.6 billion or Rs 8.32 lakh crore on New York Stock Exchange. While closing trade, market capitalization of IBM stood at Rs 8.29 lakh crore but that of TCS swelled to Rs 8.44 lakh crore.

Over the years, TCS has been on a constant roller-coaster of profits and growth in revenues. The similar scenario unfortunately isn’t shared by IBM also known as ‘Big Blue’, as it has seen several ups and downs.

 IBM has been restructuring its business, focusing more on technologies and software, moving away from commoditised parts of its business. In fiscal year 2019, TCS bagged a net profit of $4.5 billion from total revenue of $21 billion, while IBM documented $8.7 billion from $79.6 billion.

TCS Becomes the Most Favoured Company, Pushing RIL:

TCS has not only surpassed IBM in terms of market capitalization but also has taken over RIL’s spot of becoming the most valued Indian company in the Indian stock market, achieving both of these on the same day, June 10.

The m-cap of TCS while closing of trade was Rs 8,37,194.55 crore, which was Rs 1,170.47 crore more than that of RIL‘s m-cap, lodged at Rs 8,36,024.08 crore on the BSE. TCS’s shares rose by 2.39% to shut at Rs 2,231.10, while that of RIL rose by 0.27% to to shut at flat Rs 1,318.85.

Both of these companies have had a history of competing against each other to bag the topmost position in market capitalization. While in May of this year, Reliance Industries reclaimed the status of the country’s most-valued firm in terms of market valuation overtaking TCS, the latter did the same this month on Monday.

TCS is at number 1, followed by RIL, HDFC Bank , HUL and HDFC, in the domestic market capitalization ranking.

There is nothing constant in the stock market. If TCS holds the first position as of now, there can be some other tech giant which shall kick it off and succeed the same.