TCS crosses $200 billion market capitalization

TCS $200 billion market capitalization

by 5paisa Research Team Last Updated: Dec 10, 2022 - 12:05 pm 53.5k Views

TCS had been India’s most valuable company for a long time till Reliance regained the mantle last year in the midst of its digital shift. On 15-Sep, TCS finally crossed the $200 billion market cap level and got pretty close to Reliance’s market cap of $205 billion. Here is a quick look at the journey of TCS over the years and how it compares with global IT giants.

TCS has a pedigree of more than 50 years. Formed in April 1968, TCS was the pioneer in the Indian IT industry. However, between 1968 and 2004, TCS continued as a closely held company, predominantly owned by Tata Sons. It was only in 2004, that the company came out with a public issue and listed on the stock exchanges.

At the time of listing in 2004, TCS had a market cap of $6.15 billion. It has since grown to $200 billion over the last 17 years. That translates into compounded annual returns of 22.75% over last 17 years, beating the Sensex and Nifty by 800 bps. However, the journey was not smooth all through.

The stock went into stagnation after 2013 when global IT demand shifted from BFSI to SMAC consisting of social networks, mobility, analytics and cloud. TCS took the lead with a rapid shift in strategy to ensure that digital accounted for more than half of its revenues. A focus on high-value clients resulted in TCS recording OPM in excess of 25%.

How does TCS compare with global peers?

If you leave out the 3 IT companies in the $2 trillion bracket viz. Apple, Microsoft and Alphabet, TCS does rank fairly high in terms of market cap with other global IT majors. TCS market cap at $200 billion is only lower than Adobe at $314 billion, Salesforce at $251 billion and Oracle at $241 billion.

However, in terms of market value, TCS scores above SAP at $171 billion, Intuit at $156 billion, IBM at $123 billion and Schneider at $102 billion. In terms of pure software plays, TCS ranks fourth in the world. That is quite a feat for a homegrown Indian IT company.

How do you rate this blog?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account

Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Nifty Outlook for 8 June 2023

Post consolidating in a range for the last few days, Nifty resumed its uptrend and rallied higher led by broader market participation. The index surpassed the 18700 mark and ended well above that with gains of around seven-tenths of a percent.

  • Jun 07, 2023
Bearer Cheque

Introduction A bearer cheque is an efficient and adaptable financial tool. It is a method of payment where the cheque is made out to the owner or bearer of the document. Bearer cheques enable the holder to cash or deposit the cheque without any requirement for identification or endorsement, in contrast to other cheques payable to a specific person or business.

  • Jun 06, 2023
Best Indicators for Intraday Trading

Introduction Intraday trading, also known as day trading, is a fast-paced trading strategy where traders aim to take advantage of short-term price fluctuations in financial markets. To succeed in this highly competitive arena, traders rely on various best indicators for intraday to make informed decisions and maximize their chances of profitability.

  • Jun 06, 2023

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number