Reliance again overtakes TCS as India’s most valued firm
Reliance is the most valuable company in the country with market capitalization. On Tuesday it surpassed India’s biggest software services firm Tata Consultancy Services Ltd (TCS) to become the country’s most valued firm in terms of market capitalization—a first since April.
The market value of Reliance Industries rose to Rs 7,47,676.35 crore in BSE trading on Tuesday. Reliance replaced TCS as the most valuable company in the country. The current market value of TCS is Rs 7,39,297.87 crore. Reliance market value is more than Rs 8,378.48 crore higher than TCS.
The TCS acquired became the most valued company five years ago, with the market value by sending Reliance behind. Reliance shares recorded a profit of around 28 per cent this year. While TCS shares declined to 28.5 per cent this year. In the second week of this month, Reliance’s market value again crossed the 100 billion dollar mark. After about 11 years, the company achieved the feat. And in the next day, Reliance Market was worth Rs 7 lakh crore.
The company’s shares are rising ahead with recent quarterly results. Reliance Industries recorded the highest profit during the April-June quarter. On a consolidated basis, net profit rose 17.9 per cent to Rs 9,459 crore.
On Tuesday trading Reliance shares are trading High. At 1.30 pm, the company’s shares were trading at 2.33 per cent on the BSE and 2.13 per cent on the NSE. TCS shares fell by 0.54% in the BSE.
“Reliance Jio continued to show strong subscriber momentum, in line with our expectation. However, flattish sequential ARPU despite cash back offers and changes to prime membership are surprises. Focus remains on onboarding more subscribers and driving engagement; price increase appears less of a focus for now,” said Morgan Stanley in a note to its investors.
TCS on 10 July reported a 24% profit rise, the fastest pace in two years, to ₹ 7,340 crore due to robust growth in banking, financial services and insurance and the North American operations. Revenue grew 16% to ₹ 34,261 crore.
“TCS had a strong quarter witnessing a healthy growth on the back of turnaround in the BFSI segment of the North American market and the management expects the growth to sustain in the coming quarters… TCS is on track to achieve its targeted double-digit growth in FY19. Yet, we believe that at current valuations, the stock is fairly priced from a short to medium-term perspective,” said Investec Securities in 12 July note.