Share price of Tata Consultancy Services continued its rally on Thursday as the company posted its results for the quarter ended June. TCS’s share price went up close to 3% to hit an intraday high of ₹3,367.45.
The Investment: If your mom had invested ₹10,000 in the Tata Group company a decade ago, on July 16, 2013, she would have been able to purchase around 12 shares at the closing price of ₹824.68 per share. Today, those shares would be worth ₹40,236, given the current market price of around ₹3,353 per share. That’s a substantial return of over 300% on the initial investment.
Note: The stock issued 1:1 bonus shares in 2018, the prices have been adjusted to reflect that.
Background: The company posted its results for the June quarter, reporting a net profit of ₹11,074 crore, up 16.84% from the ₹9,478 crore profit it booked in the June quarter of last year. The company’s revenue from operations for the April-June period stood at ₹59,381 crore, registering a growth of 12.6% as compared to the ₹52,758 crore revenue it reported in the same period last year.
The company’s order book stood at $10.2 billion (₹84,000 crore) with a book-to-bill ratio of 1.4. The company also declared a ₹9 interim dividend per share. The announcements have certainly impressed investors but analysts seem to have had mixed reactions.
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Price Action: TCS’s share price was up 2.29% to trade at ₹1,363.85 in the late hours of trading on Thursday.
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