TCS shares hit new record high after two years, market cap crosses ₹15 lakh crore

TCS shares are up 8% so far in February and have gained for four months in a row, starting November last year.

In market capitalisation terms, TCS is the second most valued company in India, at over ₹15 lakh crore, second only to Reliance Industries, who is nearing ₹20 lakh crore in market capitalisation.

TCS' contribution to the overall market capitalisation of the Tata Group fell from nearly three-fourths in May 2020 to less than half, for the first time in the last 10 years in December 2023.

While the stock's underperformance was a factor, a bigger reason was the outperformance of domestic-oriented Tata Group stocks like Titan, Tata Motors, Trent, Tata Power, Indian Hotels and Tata Elxsi.

In an interaction with CNBC-TV18 post its quarterly results, TCS CEO K Krithivasan said that financial year 2025 may turn out to be a better one for the company but it is too early to say when things will return to the "good old days."

For the December quarter, TCS reported a US Dollar revenue growth of 1% sequentially, better than the CNBC-TV18 poll, which had projected a decline of 0.2%.

"TCS has been one of the strongest largecap IT names in the last few months. It recently witnessed a consolidation breakout on the weekly charts around ₹3,500 levels which pushed it towards the life high resistance of ₹4,050 levels. It has crossed this resistance with relative ease and is expected to witness a move towards ₹4,200 levels once it closes above ₹4,050 levels. RSI is currently trading just around 70 which once sustained can lead to a strong push towards 80 levels which can give a thrust to stock prices," said Gaurav Bissa of InCred Equities.

Out of the 44 analysts that track TCS, 10 of them have a "sell" rating on the stock, while 23 of them maintained a "buy" recommendation.

Shares of TCS are trading 3.7% higher on Tuesday at ₹4,120.