On Monday, on the first day of the week, the market capitalization of TCS has crossed Rs 12.50 lakh crore. By doing this, TCS has now become the largest IT company in the world. TCS has left the IT company Accenture behind. Currently, the market cap of Ascenter is Rs 12.15 lakh crore. Now the question arises what has happened so suddenly. Experts say that TCS quarterly results have been better than anticipated. That is why the company’s stock has increased and the stock has reached a new record level. Not only the promoters of the company, but also the investors benefit greatly.
How TCS became the world’s number one company- In the crisis of Corona, when the world economy was in bad shape. At that time people were working in the houses. In such a situation, the expenses of IT companies like TCS have come down and the company gets big orders once the lockdown opens. Due to which the company’s stock rose. That is why the trend of increasing the market cap is going on. TCS’s market cap reached Rs 10 lakh crore on 5 October 2020. On 28 December 2020, TCS’s market cap had crossed 11 lakh crore for the first time. At the same time, now the market cap of TCS has increased to Rs 12.50 lakh crore.
Let us tell you that market capitalization shows the value of outstanding shares of a company. The market capitalization of the company keeps on increasing with the purchase and sale of shares. Outstanding share refers to all the shares issued by the company. That is, those are available for trading in the market. In this way market capitalization is the total value of a company.
TCS due to new orders Strong increase in income
TCS profit rose 7.2 per cent to Rs 8,701 crore in the October-December quarter. At the same time, the company’s revenue has increased by 5.4 per cent to Rs 42,015 crore.
TCS has won a total deal of $ 680 million in the third quarter. This excludes deals from Postbank in Germany.
Investors became rich
TCS IPO came on 29 July 2004. The stock has given bumper returns so far. At the same time, in the past one month, 15 percent, in three months, 24 percent, in a year, 50 percent has been given.
Brokerage house Jefferies has given a target of Rs 3720, recommending the purchase of TCS shares. It has been said in the report that now TCS is getting the benefit of increasing demand in this sector.
Revenue and margins have been better than expected. Margin has increased even after the wedge hike and new hiring, which is a big positive factor. At the same time, management commentary on growth is going to increase enthusiasm.
TCS will give 40 thousand new jobs this year
Experts say that increasing the market cap means the company is performing well. On one hand, the promoters will benefit from the increasing market cap. On the other hand, investors will get earning opportunities. Also, the company will spend on its expansion. So there will be opportunities for new jobs. TCS has announced to make 40 thousand new recruitments this year.
How TCS was started
The Tata group ever started TCS as a startup. JRD Tata did it in 1968. The Tata Consultancy Service started at the suggestion of Colonel Leslai Sawhney, close to JRD Tata and brother-in-law.
At that time, Tata Consultancy Services were started to cater to the data processing needs of the group. TCS was started at that time, everybody used to look at computers with suspicion because they thought it would end jobs.
In 1969, Fakir Chand Kohli, director of Tata Electric Company, was made general manager of TCS. After some time, Fakirchand Kohli became the CEO of TCS. During the time of Fakir Chand Kohli, there was a lot of transformation in TCS.
It is said that Kohli was instrumental in building the company. This is why he is also called the grandfather of the IT industry.
It is also a fact to remember that on the request of JRD Tata, Kohli pioneered the establishment of TCS in 1969. The need or reason for this was that a computer system was introduced at Tata Power Company to control the power lines between Mumbai and Pune. So for the time to come, the possibilities of IT were to be explored and prepared. The journey started from here became the originator of India’s ‘technical movement’.
In 1980, TCS established the Tata Research Development and Design Center in Pune. It is the first software research and development center in the country. In 1993, Tata partnered with Canadian software factory-Integrity Software Corp since 1993, which was later acquired by TCS.
TCS got real heights after Ratan Tata took over Tata Sons. In 1996 Ratan Tata appointed Ramadorai as chief executive of TCS. At that time TCS was just a $ 160 million company. S. Ramadorai is also considered to be an important contributor to TCS’s achievement. Ramadorai significantly changed the leadership style of TCS.