Shares of Tata Consultancy Services (TCS), the top software services exporter, touched a record high of Rs 2,579.65, up nearly 2 percent and crossed the market capitalisation mark of Rs 5 lakh crore on Wednesday, the highest among listed Indian companies. Currently it is the only company that has market cap of more than Rs 5 lakh crore-mark followed by ONGC (Rs 348,251.23 crore), Reliance Industries (Rs 331,225.60 crore), ITC (Rs 278,291.27 crore) and Coal India (Rs 242,706.30 crore). Moreover, its current market capitalisation of Rs 504,666.26 crore is higher than the combined market cap of Infosys (Rs 190,215.73 crore), HCL Technologies (Rs 108,230.21 crore), Wipro (Rs 139,470.18 crore) and Tech Mahindra (Rs 50,485.91 crore). The stock has been in strong traction, rallying more than 8 percent in four consecutive sessions from last Friday, especially after it reported stellar performance in April-June quarter earnings that beat street expectations on every parameter. India's largest software services exporter's dollar revenues were higher by 5.5 percent sequentially at USD 3,694 million driven by a strong volume growth of 5.7 percent, which was quite better than its closest peer Infosys' 2 percent. Consolidated net profit was Rs 5,057 crore, down 4.5 percent as against CNBC-TV18 poll estimates of 11 percent degrowth. After the strong start to the current financial year, brokerages remained bullish on the stock. Macquarie on last Friday said it reiterated outperform rating on the stock with a 12-month price target of Rs 2,700 with large deal wins as catalyst. "Revenue growth from TCS in the last three years has been driven across verticals and service lines. This quarter was no different and gives credence to TCS’ ability to sustain its leadership in the space," it said in a report. It says that this quarter the big lever that helped the company was utilisation (now at 85 percent), and TCS management is comfortable with that.
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