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Dec 21
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Indian (NIFTY) Tech Sector Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies318
- 7D-4.6%
- 3M2.0%
- 1Y20.3%
- YTD20.7%
Over the last 7 days, the Tech industry has dropped 1.8%, driven by Tata Consultancy Services declining 6.8%. In contrast, Kaynes Technology India has gained 8.2%. This takes the industry's 12 month performance to a gain of 26%. As for the next few years, earnings are expected to grow by 13% per annum.
Sector Valuation and Performance
Has the Indian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 21 Dec 2024 | ₹47.1t | ₹10.2t | ₹1.3t | 41.3x | 35.7x | 4.6x |
| Mon, 18 Nov 2024 | ₹45.4t | ₹10.2t | ₹1.3t | 40x | 34.3x | 4.5x |
| Wed, 16 Oct 2024 | ₹45.3t | ₹9.9t | ₹1.3t | 42.7x | 35.4x | 4.6x |
| Fri, 13 Sep 2024 | ₹46.5t | ₹9.9t | ₹1.3t | 42.4x | 36.7x | 4.7x |
| Sun, 11 Aug 2024 | ₹42.1t | ₹9.8t | ₹1.3t | 41.5x | 33.3x | 4.3x |
| Tue, 09 Jul 2024 | ₹41.0t | ₹9.7t | ₹1.2t | 42.8x | 33.1x | 4.2x |
| Thu, 06 Jun 2024 | ₹36.2t | ₹9.7t | ₹1.2t | 36.6x | 29.3x | 3.7x |
| Sat, 04 May 2024 | ₹36.6t | ₹9.7t | ₹1.2t | 46.9x | 29.6x | 3.8x |
| Mon, 01 Apr 2024 | ₹37.6t | ₹9.6t | ₹1.2t | 40.9x | 31.1x | 3.9x |
| Wed, 28 Feb 2024 | ₹40.4t | ₹9.6t | ₹1.2t | 46.4x | 33.5x | 4.2x |
| Fri, 26 Jan 2024 | ₹39.0t | ₹9.6t | ₹1.2t | 46.5x | 31.8x | 4.1x |
| Sun, 24 Dec 2023 | ₹38.2t | ₹9.5t | ₹1.2t | 46.4x | 31.1x | 4x |
| Tue, 21 Nov 2023 | ₹34.7t | ₹9.5t | ₹1.2t | 40.4x | 28.4x | 3.7x |
| Thu, 19 Oct 2023 | ₹33.9t | ₹9.4t | ₹1.2t | 43.5x | 27.6x | 3.6x |
| Sat, 16 Sep 2023 | ₹34.6t | ₹9.3t | ₹1.2t | 40.2x | 28.6x | 3.7x |
| Mon, 14 Aug 2023 | ₹32.6t | ₹9.3t | ₹1.2t | 39.1x | 26.9x | 3.5x |
| Wed, 12 Jul 2023 | ₹31.2t | ₹9.0t | ₹1.2t | 34.2x | 26.3x | 3.4x |
| Fri, 09 Jun 2023 | ₹30.5t | ₹9.0t | ₹1.2t | 33.3x | 25.7x | 3.4x |
| Sun, 07 May 2023 | ₹29.4t | ₹8.9t | ₹1.2t | 29.2x | 24.8x | 3.3x |
| Tue, 04 Apr 2023 | ₹29.8t | ₹8.6t | ₹1.2t | 26.2x | 25.7x | 3.5x |
| Thu, 02 Mar 2023 | ₹31.9t | ₹8.9t | ₹1.2t | 25.7x | 27.6x | 3.6x |
| Sat, 28 Jan 2023 | ₹31.9t | ₹8.8t | ₹1.1t | 28.8x | 27.9x | 3.6x |
| Mon, 26 Dec 2022 | ₹30.5t | ₹8.5t | ₹1.1t | 27.4x | 27x | 3.6x |
| Wed, 23 Nov 2022 | ₹31.3t | ₹8.5t | ₹1.1t | 28.4x | 27.9x | 3.7x |
| Fri, 21 Oct 2022 | ₹30.2t | ₹8.4t | ₹1.1t | 28.7x | 26.8x | 3.6x |
| Sun, 18 Sep 2022 | ₹28.9t | ₹8.1t | ₹1.1t | 28.6x | 26.2x | 3.6x |
| Tue, 16 Aug 2022 | ₹31.9t | ₹8.1t | ₹1.1t | 27.1x | 29x | 4x |
| Thu, 14 Jul 2022 | ₹29.0t | ₹7.8t | ₹1.1t | 27.6x | 26.1x | 3.7x |
| Sat, 11 Jun 2022 | ₹31.2t | ₹7.7t | ₹1.1t | 28.9x | 28.4x | 4.1x |
| Mon, 09 May 2022 | ₹32.4t | ₹7.6t | ₹1.1t | 31.3x | 29.7x | 4.3x |
| Wed, 06 Apr 2022 | ₹37.5t | ₹7.3t | ₹1.1t | 35.5x | 35.5x | 5.1x |
| Fri, 04 Mar 2022 | ₹35.1t | ₹7.3t | ₹1.1t | 30.9x | 33.2x | 4.8x |
| Sun, 30 Jan 2022 | ₹35.6t | ₹7.3t | ₹1.1t | 32.6x | 33.7x | 4.9x |
| Tue, 28 Dec 2021 | ₹38.9t | ₹7.0t | ₹1.0t | 31.7x | 37.3x | 5.5x |
Price to Earnings Ratio
37.3x
Current Industry PE
- Investors are optimistic on the Indian Information Technology industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 36.5x which is higher than its 3-year average PE of 30.1x.
- The 3-year average PS ratio of 4.0x is lower than the industry's current PS ratio of 4.7x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 8.2% per year over the last three years.
- Revenues for these companies have grown 13% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Indian Tech sector?
| IN Market | -4.25% | |
| Tech | -4.62% | |
| Electronic Equipment and Components | 2.59% | |
| Tech Hardware | -1.13% | |
| Software | -1.24% | |
| Semiconductors | -4.95% | |
| IT | -5.25% | |
| Communications | -5.61% | |
Industry PE
- Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 20.1x.
- Analysts are expecting annual earnings growth of 61.4%, which is higher than its past year's earnings growth of 31.7% per year.
- Investors are most pessimistic about the IT industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 28.8x.
Forecasted Growth
- Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 61% over the next 5 years.
- This is better than its past earnings growth rate of 32% per year.
- In contrast, the IT industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| KAYNES Kaynes Technology India | ₹7.30k | 8.2% +₹35.3b | 166.2% | PE196.7x | |
| 533339 Zen Technologies | ₹2.50k | 15.3% +₹29.9b | 234.3% | PE110.1x | |
| NEWGEN Newgen Software Technologies | ₹1.57k | 13.2% +₹25.7b | 118.8% | PE75.6x | |
| BLACKBUCK Zinka Logistics Solutions | ₹501.65 | 18.5% +₹13.8b | n/a | PS24.3x | |
| AVALON Avalon Technologies | ₹992.50 | 16.3% +₹9.2b | 80.0% | PE227.8x |
