October 08, 2013 / 16:44 IST
This is more of a follow up the article on Infosys yesterday (Read More). And while TCS numbers are still some time away, I am just amazed by the kind of buying the stock has seen over last few days. It’s trading at life time highs, in fact practically makes new highs on daily basis. Its market cap is now 2.4x Infosys. Yes, this means TCS=Infosys+Infosys and Rs 70,000 crores!!!
TCS now trades at 23 times FY14 estimated EPS. This is a significant gap over the 16 times market pays for Infosys. Of course over the last few years, TCS has done everything right to deserve this gap with its consistency of performance. But we are talking about what’s happened in last few days.TCS is up 3 percent this week, 9 percent this month and 66 percent this year. Talk about a stock being in an uptrend over short, medium and long-term!!Over the last 5 days, the average delivery volumes on TCS have been 61 percent - in fact on 3rd October when it had a technical breakout, the stock had delivery volumes of 71 percent and saw delivery based buying worth Rs 335 crores on NSE alone. Over the last 5 days, it has seen delivery based buying of nearly Rs 800 crores. Now normally markets are smarter than everybody. Is the market pricing in a big outperformance in earnings this time from TCS over Infosys? Let’s wait for 10 days and we will have the answer. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
