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TCS market capitalisation jumped over three-fold under N Chandrasekaran

TCS outperformed its peers with its m-cap increasing by Rs 3.90 lakh crore to Rs 4.43 lakh crore

Deepak Korgaonkar & Aprajita Sharma  |  Mumbai, New Delhi 

Chandrasekaran, TCS, tata
N Chandrasekaran. Photo: Kamlesh Pednekar

N Chandrasekaran’s tenure at the country's largest software services firm, (TCS), was marked by its outperformance over peers and on all fronts, be it IT giant's stock price appreciation or fundamentals such as top and bottom line growths, which jumped two-fold during his tenure.

On Thursday, Chandrasekaran stepped down as TCS’ managing director and chief executive office (MD & CEO) after being elevated as the Chairman of Tata Sons -- the group's holding company. 

took over as the CEO of on October 6, 2009. Prior to that, he was chief operating officer (COO) and executive director at the IT firm.

Rajesh Gopinathan, the company's chief finance officer (CFO) will now step into Chandrasekaran’s shoes.

The announcement came soon after the Mumbai-based IT firm, reported 2.9% sequential jump in net profit at Rs 6,778 crore in the December quarter.

Company Price  M-cap Price  M-cap
  in Rs Rs crore % chg Change
TCS 2249.30 443,208 733.1 390,364
Infosys 975.80 224,136 194.8 148,289
HCL Technologies 850.25 119,987 1571.1 113,172
Wipro 484.65 117,812 229.2 81,862
         
Price on NSE as on January 13, 2017.
% chg, change over March 31, 2009

Standing tall among peers

stock appreciated a massive 733 per cent since March 31, 2009, compared with 195 per cent jump in peer and 229 per cent in Wipro.

HCL Technologies, the fourth largest IT firm, remained the only close peer (up 1571 per cent) which raced past the IT major on return front.

remained the most valued firm on BSE in Chandrasekaran’s tenure. TCS’ market capitalisation swelled by a whopping Rs 3.90 lakh crore under Chandrasekaran to Rs 4.43 lakh crore at close on Friday. was the first Indian company to cross the Rs 5 lakh crore mark in market capitalisation on July 23, 2014.

HCL Technologies and have seen less than Rs 1.5 lakh crore gains in their respective m-caps, while Wipro’s m-cap was up Rs 81,862 crore.

TCS’ consolidated net profit increased more than four-fold from Rs 5,256 crore in financial year 2008-09 (FY09) to Rs 24,292 crore in FY16. and Wipro’s net profit more than doubled during the same period.

posted consolidated net profit of Rs 19,735 crore in first nine months (April to December) of the current financial year 2016-17 (FY17), while reported profit of Rs 10,749 crore in the same period.

On Friday, stock settled 4% lower at Rs 2,249 as the change in management overshadowed the robust earnings growth in Q3.

Brokerage view on Q3 and management change

Brokerage HDFC Securities expects the stock to remain range bound in the near-term as leadership rejig and relative stability in BFSI segment may restrict meaningful upside or downside in the stock.

"Incoming CEO and current CFO has wide experience ranging from business to finance within TCS. However, filling in Chandra's shoes will be a challenging task," said analysts at Antique Stock Broking.

Brokerage Reliance Securities believes management change at this juncture is not prudent.

"In a time marked with multiple challenges and key headwinds impacting the IT sector, this is not an apt moment to rock the boat for TCS, especially considering Chandrasekaran’s vast expertise and CEO and board-level connect with major clients. Though we realise this is a strategic decision taken with a view to stabilising the turbulent waters at Group level, we remain concerned about the consequential impact on TCS,” said the brokerage.

Vaibhav Agrawal, head of research, Angel Broking, said, “TCS, under Chandrasekaran’s leadership, consistently reported strong financials, return ratios and has become most valuable company in India. This is something that indicates successful track record of the new Chairman at Tata Sons.” 
 
Company Revenues (Rs crore) Net profit (Rs crore) Revenues Net profit
  FY09 FY16 FY09 FY16 9 months 9 months
TCS 27,813 108,646 5,256 24,292 88,324 19,735
Infosys 21,693 62,441 5,988 13,678 51,364 10,749
HCL Technologies* 7,563 30,781 1,051 5,643 NA NA
Wipro 25,700 51,248 3,900 8,960 NA NA
             
*FY09 - ended June 2008, FY16 results for nine months ended March 2016.
# 9 months (April - December) of FY17.
Source: CapitalinePlus                                                           Data compiled by BS Research
 

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TCS market capitalisation jumped over three-fold under N Chandrasekaran

TCS outperformed its peers with its m-cap increasing by Rs 3.90 lakh crore to Rs 4.43 lakh crore

TCS outperformed all the three companies with its market capitalisation increasing by Rs 3.90 lakh crore to Rs 4.43 lakh crore on Friday.
N Chandrasekaran’s tenure at the country's largest software services firm, (TCS), was marked by its outperformance over peers and on all fronts, be it IT giant's stock price appreciation or fundamentals such as top and bottom line growths, which jumped two-fold during his tenure.

On Thursday, Chandrasekaran stepped down as TCS’ managing director and chief executive office (MD & CEO) after being elevated as the Chairman of Tata Sons -- the group's holding company. 

took over as the CEO of on October 6, 2009. Prior to that, he was chief operating officer (COO) and executive director at the IT firm.

Rajesh Gopinathan, the company's chief finance officer (CFO) will now step into Chandrasekaran’s shoes.

The announcement came soon after the Mumbai-based IT firm, reported 2.9% sequential jump in net profit at Rs 6,778 crore in the December quarter.

Company Price  M-cap Price  M-cap
  in Rs Rs crore % chg Change
TCS 2249.30 443,208 733.1 390,364
Infosys 975.80 224,136 194.8 148,289
HCL Technologies 850.25 119,987 1571.1 113,172
Wipro 484.65 117,812 229.2 81,862
         
Price on NSE as on January 13, 2017.
% chg, change over March 31, 2009

Standing tall among peers

stock appreciated a massive 733 per cent since March 31, 2009, compared with 195 per cent jump in peer and 229 per cent in Wipro.

HCL Technologies, the fourth largest IT firm, remained the only close peer (up 1571 per cent) which raced past the IT major on return front.

remained the most valued firm on BSE in Chandrasekaran’s tenure. TCS’ market capitalisation swelled by a whopping Rs 3.90 lakh crore under Chandrasekaran to Rs 4.43 lakh crore at close on Friday. was the first Indian company to cross the Rs 5 lakh crore mark in market capitalisation on July 23, 2014.

HCL Technologies and have seen less than Rs 1.5 lakh crore gains in their respective m-caps, while Wipro’s m-cap was up Rs 81,862 crore.

TCS’ consolidated net profit increased more than four-fold from Rs 5,256 crore in financial year 2008-09 (FY09) to Rs 24,292 crore in FY16. and Wipro’s net profit more than doubled during the same period.

posted consolidated net profit of Rs 19,735 crore in first nine months (April to December) of the current financial year 2016-17 (FY17), while reported profit of Rs 10,749 crore in the same period.

On Friday, stock settled 4% lower at Rs 2,249 as the change in management overshadowed the robust earnings growth in Q3.

Brokerage view on Q3 and management change

Brokerage HDFC Securities expects the stock to remain range bound in the near-term as leadership rejig and relative stability in BFSI segment may restrict meaningful upside or downside in the stock.

"Incoming CEO and current CFO has wide experience ranging from business to finance within TCS. However, filling in Chandra's shoes will be a challenging task," said analysts at Antique Stock Broking.

Brokerage Reliance Securities believes management change at this juncture is not prudent.

"In a time marked with multiple challenges and key headwinds impacting the IT sector, this is not an apt moment to rock the boat for TCS, especially considering Chandrasekaran’s vast expertise and CEO and board-level connect with major clients. Though we realise this is a strategic decision taken with a view to stabilising the turbulent waters at Group level, we remain concerned about the consequential impact on TCS,” said the brokerage.

Vaibhav Agrawal, head of research, Angel Broking, said, “TCS, under Chandrasekaran’s leadership, consistently reported strong financials, return ratios and has become most valuable company in India. This is something that indicates successful track record of the new Chairman at Tata Sons.” 
 
Company Revenues (Rs crore) Net profit (Rs crore) Revenues Net profit
  FY09 FY16 FY09 FY16 9 months 9 months
TCS 27,813 108,646 5,256 24,292 88,324 19,735
Infosys 21,693 62,441 5,988 13,678 51,364 10,749
HCL Technologies* 7,563 30,781 1,051 5,643 NA NA
Wipro 25,700 51,248 3,900 8,960 NA NA
             
*FY09 - ended June 2008, FY16 results for nine months ended March 2016.
# 9 months (April - December) of FY17.
Source: CapitalinePlus                                                           Data compiled by BS Research
 

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Business Standard
177 22

TCS market capitalisation jumped over three-fold under N Chandrasekaran

TCS outperformed its peers with its m-cap increasing by Rs 3.90 lakh crore to Rs 4.43 lakh crore

N Chandrasekaran’s tenure at the country's largest software services firm, (TCS), was marked by its outperformance over peers and on all fronts, be it IT giant's stock price appreciation or fundamentals such as top and bottom line growths, which jumped two-fold during his tenure.

On Thursday, Chandrasekaran stepped down as TCS’ managing director and chief executive office (MD & CEO) after being elevated as the Chairman of Tata Sons -- the group's holding company. 

took over as the CEO of on October 6, 2009. Prior to that, he was chief operating officer (COO) and executive director at the IT firm.

Rajesh Gopinathan, the company's chief finance officer (CFO) will now step into Chandrasekaran’s shoes.

The announcement came soon after the Mumbai-based IT firm, reported 2.9% sequential jump in net profit at Rs 6,778 crore in the December quarter.

Company Price  M-cap Price  M-cap
  in Rs Rs crore % chg Change
TCS 2249.30 443,208 733.1 390,364
Infosys 975.80 224,136 194.8 148,289
HCL Technologies 850.25 119,987 1571.1 113,172
Wipro 484.65 117,812 229.2 81,862
         
Price on NSE as on January 13, 2017.
% chg, change over March 31, 2009

Standing tall among peers

stock appreciated a massive 733 per cent since March 31, 2009, compared with 195 per cent jump in peer and 229 per cent in Wipro.

HCL Technologies, the fourth largest IT firm, remained the only close peer (up 1571 per cent) which raced past the IT major on return front.

remained the most valued firm on BSE in Chandrasekaran’s tenure. TCS’ market capitalisation swelled by a whopping Rs 3.90 lakh crore under Chandrasekaran to Rs 4.43 lakh crore at close on Friday. was the first Indian company to cross the Rs 5 lakh crore mark in market capitalisation on July 23, 2014.

HCL Technologies and have seen less than Rs 1.5 lakh crore gains in their respective m-caps, while Wipro’s m-cap was up Rs 81,862 crore.

TCS’ consolidated net profit increased more than four-fold from Rs 5,256 crore in financial year 2008-09 (FY09) to Rs 24,292 crore in FY16. and Wipro’s net profit more than doubled during the same period.

posted consolidated net profit of Rs 19,735 crore in first nine months (April to December) of the current financial year 2016-17 (FY17), while reported profit of Rs 10,749 crore in the same period.

On Friday, stock settled 4% lower at Rs 2,249 as the change in management overshadowed the robust earnings growth in Q3.

Brokerage view on Q3 and management change

Brokerage HDFC Securities expects the stock to remain range bound in the near-term as leadership rejig and relative stability in BFSI segment may restrict meaningful upside or downside in the stock.

"Incoming CEO and current CFO has wide experience ranging from business to finance within TCS. However, filling in Chandra's shoes will be a challenging task," said analysts at Antique Stock Broking.

Brokerage Reliance Securities believes management change at this juncture is not prudent.

"In a time marked with multiple challenges and key headwinds impacting the IT sector, this is not an apt moment to rock the boat for TCS, especially considering Chandrasekaran’s vast expertise and CEO and board-level connect with major clients. Though we realise this is a strategic decision taken with a view to stabilising the turbulent waters at Group level, we remain concerned about the consequential impact on TCS,” said the brokerage.

Vaibhav Agrawal, head of research, Angel Broking, said, “TCS, under Chandrasekaran’s leadership, consistently reported strong financials, return ratios and has become most valuable company in India. This is something that indicates successful track record of the new Chairman at Tata Sons.” 
 
Company Revenues (Rs crore) Net profit (Rs crore) Revenues Net profit
  FY09 FY16 FY09 FY16 9 months 9 months
TCS 27,813 108,646 5,256 24,292 88,324 19,735
Infosys 21,693 62,441 5,988 13,678 51,364 10,749
HCL Technologies* 7,563 30,781 1,051 5,643 NA NA
Wipro 25,700 51,248 3,900 8,960 NA NA
             
*FY09 - ended June 2008, FY16 results for nine months ended March 2016.
# 9 months (April - December) of FY17.
Source: CapitalinePlus                                                           Data compiled by BS Research
 

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Business Standard
177 22