The Tata Consultancy Services stock rose in early trade in an otherwise falling market after the country's biggest software services exporter reported earnings which met street expectations . At 9:23 am, the TCS stock was trading 3.32% or 105 points higher at 3296.50 level on BSE.
The stock opened at 3,250 level and hit a fresh 52 week high of 3320 level within minutes of trade.
The market capitalisation of the firm rose to Rs 6,31,734 crore on BSE.
Revenue growth came at 8.2 per cent (YoY). Its FY18 Q4 revenue was at Rs 32,075 crore.
TCS' commentary that despite the blip in retail, it should grow in double-digits in FY19 led to positive sentiment around the stock.
The firm's dollar revenue estimate for FY19/20 rose by 2.3/2.4% (factoring in better cross-currency), driving 2-4% uptick in earnings. TCS will start the year with 200 bp headwind to margins from wage hikes, and the task to get to 26% on a full-year basis appears a daunting one
TCS Chief Operating Officer and Executive Director N Ganapathy Subramaniam said that strong deal wins and a good pipeline positions TCS very well in the new fiscal.
Digital revenue accounted for 23.8 per cent of the revenue, up 42.8 per cent year-on-year.
Motilal Oswal in a note said: The stock already trades at 19 times FY20E earnings, and continued single-digit growth rate will not make a case further expansion in valuation multiples.
Meanwhile, the Sensex was trading 53 points lower at 34,373 level. The Nifty too was down 0.21% at 10,543 level.
The stock had closed 0.99% higher before earnings were announced on Thursday.