Shares of Tata Consultancy Services Ltd. hit a 52-week high on Monday after its board plans to consider a proposal to buyback shares.
"The board of directors will consider a proposal for the buyback of equity shares of the company at its meeting to be held on Oct. 11," according to an exchange filing.
The country's largest I.T. services firm will also declare its second-quarter earnings on that day. The buyback, if approved, will be TCS' fifth since 2017.
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From March 9–23, 2022, the Tata Group firm repurchased 40 million shares of face value Re 1 each at Rs 4,500 apiece for an aggregate amount of Rs 18,000 crore, according to data available on the stock exchanges.
TCS had effected similar share buybacks in October 2020, June 2018, and February 2017.
Shares of Tata Consultancy Services Ltd. rose as much as 1.04% to hit a 52-week high at Rs 3,659 apiece. It pared gains to trade 0.76% higher at Rs 3,649.05 apiece, compared to a 0.59% decline in the benchmark NSE Nifty 50 as of 9:45 a.m.
It has risen 14.4% on a year-to-date basis. The total traded volume so far in the day stood at 5.7 times its 30-day average. The relative strength index was at 67.9.
Twenty-four out of the 46 analysts tracking TCS maintain a 'buy' rating, 13 recommend a 'hold' and nine suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 0.8%.
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