TCS NO LONGER INDIA'S MOST VALUABLE IT FIRM? Its Valuation Just Slipped Below Key Rivals! 😱

Tech

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Updated on 12 Nov 2025, 05:08 pm

For the past 14 years, from 2011 until early this year, Tata Consultancy Services (TCS) was the undisputed leader in terms of equity valuation within the Indian IT sector. However, this status has recently changed. TCS is now trading at a trailing Price-to-Earnings (P/E) multiple of 22.5X. This is lower than its peers, Infosys, which trades at 22.9X, and HCL Technologies, trading at 25.1X. This shift represents a reversal of fortune for India's largest IT services exporter, which historically commanded a premium, trading at an average P/E of 25.5X, nearly 15% higher than the industry.

Impact This development could indicate a change in market perception regarding TCS's future growth prospects or operational efficiency relative to its competitors. Investors might be reassessing TCS's position in the market, potentially leading to a re-evaluation of its stock price. This could also present opportunities for investors to consider other IT companies that are now showing higher valuation multiples, suggesting stronger growth expectations from the market. Rating: 7/10.

Terms Price-to-Earnings (P/E) multiple: This is a financial valuation ratio that compares a company's current stock price to its earnings per share. It is used to determine how much investors are willing to pay for each rupee of earnings. A higher P/E ratio typically suggests investors expect higher earnings growth in the future, or that the stock is overvalued. A lower P/E ratio may indicate lower growth expectations or that the stock is undervalued.