Tata's Most Valued Stock Hits All-Time High; 1500 Shares Of TCS Give Potentially Rs 5.27 Cr Returns In 20 Yrs

Tata Group's most valued stock, Tata Consultancy Services (TCS) is popping off, riding on the back of bulls and soaring to a new all-time high. TCS is at a fresh record high of Rs 4,149.75 apiece, slightly shy of the Rs 4,150 mark which is also its latest Rs 17,000 crore buyback floor price. The tech behemoth also touched a market valuation of over Rs 15 lakh crore. Despite near-term challenges in the macro conditions, TCS has become investors' darling. The flagship company of Tatas is also a beacon of success for why investment in stocks is better long-term to hedge humungous returns.

In TCS' case, the largest tech giant of India has made investors crorepati who stayed with the stock since listing days.

On February 6, TCS share price skyrocketed by as much as 4.5% on BSE by hitting a fresh lifetime high of Rs 4,149.75 apiece. At the time of writing, TCS shares traded at Rs 4,137 apiece, higher by Rs 164.25 or 4.13% on BSE with a market cap of over Rs 15.13 lakh crore.

Overall, in the single day, TCS' market cap has gained by a whopping Rs 64,760.09 crore, totalling over Rs 15.18 lakh crore compared to the previous day's print of Rs 14.53 lakh crore.

In five trading sessions, TCS's share price is up by over 8% on BSE, while its monthly gain is about 12.30% and six-monthly upside is around 19%.

In two decades, TCS shares have come a long way. The company's IPO was a huge success in July 2004, and the shares were listed on stock exchanges on August 25, 2004. TCS IPO was available from July 29th to August 5th of 2004 to raise to Rs 4713.47 crore. The company offered 4,99,07,340 equity shares at an issue price of Rs 850 apiece. The IPO was listed at a premium of 26.6% at Rs 1,076 apiece on exchanges BSE and NSE.

Let's calculate how much returns investors will receive in holding 1500 shares of TCS since listing day:

As per TCS' website, if 1500 shares were bought in 2004, the estimated purchase price of your shares will be Rs 850 apiece which is also the issue price. Your purchase value will total Rs 12.75 lakh.

However, the website takes into consideration the previous day's print since the market is yet to close on February 6, 2024. So at Rs 3972.75 apiece which was recorded on February 5, 2024, your shares increase to 12,000 from the previous 1500 shares.

Then your current market value has potentially risen to Rs 4.77 crore in 20 years. Further, TCS also adds the payout for dividends which comes to around Rs 62.79 lakh.

Taking into consideration the above calculation, your investment value has mind-bogglingly risen from Rs 12.75 lakh to an impressive Rs 5.40 crore. The overall return on your investment value is nearly Rs 5.27 crore, implying a 4131.52% return on the funding.

Since listing, TCS shares have delivered 3 bonuses to its investors since July 2006. While TCS has so far not carried any stock split. But TCS is among the dividend king stocks in the large-cap basket. As per Trendlyne data, TCS has declared up to 83 dividends since October 28, 2004.

At the current market price, TCS' dividend yield is at 1.67%.

On February 5, when TCS crossed over Rs 4,000 mark, the company announced that it had been selected as a strategic partner by Europ Assistance, a leading global assistance and travel insurance company,
to help reimagine its global IT operating model for enhanced resilience, scalability and user experience.

Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world's largest businesses in their transformation journeys for over 55 years. Its consulting-led, cognitive powered, portfolio of business, technology and engineering services and solutions
is delivered through its unique Location Independent Agile delivery model, recognized as a benchmark of excellence in software development.

Disclaimer:

The stock just highlights the latest development, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.