Tata Consultancy Services (TCS) stock price rose to a historical high during intraday trade at Rs 1,330 today on expectations that the company will post phenomenal financial performance in its third quarter ended December 2006.
The stock closed at new high of Rs. 1,325.30 on volume of 4,70,227 shares. TCS market capitalization was at Rs. 1,20,769.03 crore.The stock moved sharply higher amid high volume as investors expect the company's growth will be largely driven by volume.
The recent addition in number of clients is a direct offshoot of the strong brand that TCS has built across the globe, analysts said.TCS will announce its Q3 results on January 15.
The company's integrated full-services model, including business intelligence, consulting, infrastructure and assurance services would drive growth. TCS is expected to continue to obtain large customers and addition of new clients in Q3.
The company is also expected to continue to report enhancement in itsoperating margins due to increased offshore revenues, rising billing rates and cost efficiencies.
The management had earlier indicated increases in pricing for existing clients coming for renewal of contract by around 3-5% while new clients would be billed at 5-10% more from than the current billing rates. This is significantly higher than some of its peers who have projected flat to marginal increase in the billing rates of existing clients, analysts said.