TCS Share: This Friday witnessed a notable uptick in a company’s share performance. In the last 10 minutes of trading, the shares surged by 0.90%, closing at a price of 3621 rupees.
TCS Share: Information released to the exchange by the company suggests that the board may once again decide on a share buyback during their meeting on October 11. It’s noteworthy to mention that this company has a track record of implementing a buyback every two years. As of Q1FY24, the company has a cash reserve amounting to 60,904 crore rupees. The previous share buyback was completed on March 23, 2022, with a hefty sum of 18,000 crore rupees. The buyback price then was set at 4500 rupees per share.
Analyzing TCS Share Performance: Over different timeframes, TCS shares have displayed remarkable consistency:
- 2% return over the past week
- 10% return in the last three months
- 17% return over the past year
- 35% return over the last three years
TCS has a history of announcing buybacks. Share buybacks were initiated in 2017, 2018, and 2020. The size of each of these buybacks was 16,000 crore rupees, often at a premium ranging between 17-19%.
TCS Share: It’s essential to understand what a share buyback represents. A share buyback occurs when a company repurchases its shares using its capital reserves. This typically indicates the company’s belief that its shares are undervalued in the market. The buyback reduces the company’s equity capital. Shares repurchased from the market are subsequently canceled and cannot be reissued. With reduced equity capital, the company’s Earnings Per Share (EPS) typically sees an increase. Consequently, a buyback can result in a better Price-to-Earnings (P/E) ratio for the shares.
Given TCS’s consistent performance and its historical inclination towards share buybacks, market watchers are keenly observing how this plays out in their upcoming board meeting. The implications of such decisions can significantly influence the stock’s performance and the broader IT market landscape.
