TCS share in Tata group mcap declines

Hitting A 16-Year Low

- KRISHNA KANT

Tata Consultancy Services (TCS), the country's largest player in information-technology (IT) export, has seen a sharp decline in its contribution to the Tata group's market capitalisation in recent years though it remains the most valuable company in the conglomerate.

Its 44.8 per cent share in the combined market capitalisation of the listed Tata group companies is the lowest since March 2009 and is down sharply from the all-time high contribution of 74.4 per cent at the end of March 2020.

On Thursday it ended with a market capitalisation of ₹11.94 trillion against the group companies' ₹26.61 trillion the same day.

With this, TCS lost 15 per cent of market capitalisation since the end of March last year as against a 13.3 per cent decline for the group on this count during the period.

At this rate, the TCS share price will underperform the group for the fifth consecutive year, which is its longest stretch of underperformance since its listing in August 2004.

The group companies had a combined market capitalisation of ₹30.7 trillion at the end of March 2024 against TCS' ₹14.05 trillion at the same time.