Tech Mahindra (NSE:TECHM) Seems To Use Debt Rather Sparingly
Nov 22
Indian (NIFTY) Tech Sector Analysis
UpdatedDec 04, 2022
DataAggregated Company Financials
Companies284
- 7D1.8%
- 3M8.8%
- 1Y-12.7%
- YTD-18.9%
Over the last 7 days, the Tech industry has risen 1.8%, driven by gains from Tata Consultancy Services of 1.5%. However, the industry is down 13% over the past year. Earnings are forecast to grow by 13% annually.
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 |
|---|---|---|---|---|---|---|
| Sun, 04 Dec 2022 | ₹33.2t | ₹8.5t | ₹1.1t | 29.7x | 29.6x | 3.9x |
| Tue, 01 Nov 2022 | ₹30.5t | ₹8.4t | ₹1.1t | 29.6x | 27.1x | 3.6x |
| Thu, 29 Sep 2022 | ₹29.0t | ₹8.2t | ₹1.1t | 26.2x | 26.1x | 3.6x |
| Sat, 27 Aug 2022 | ₹30.7t | ₹8.1t | ₹1.1t | 27.1x | 27.8x | 3.8x |
| Mon, 25 Jul 2022 | ₹30.2t | ₹7.9t | ₹1.1t | 28.3x | 27.2x | 3.8x |
| Wed, 22 Jun 2022 | ₹29.8t | ₹7.7t | ₹1.1t | 26.1x | 27.1x | 3.9x |
| Fri, 20 May 2022 | ₹30.3t | ₹7.7t | ₹1.1t | 29x | 27.6x | 4x |
| Sun, 17 Apr 2022 | ₹35.8t | ₹7.5t | ₹1.1t | 34.3x | 33.4x | 4.8x |
| Tue, 15 Mar 2022 | ₹36.8t | ₹7.4t | ₹1.1t | 32.2x | 34.6x | 5x |
| Thu, 10 Feb 2022 | ₹36.7t | ₹7.3t | ₹1.1t | 34.7x | 34.7x | 5x |
| Sat, 08 Jan 2022 | ₹39.5t | ₹7.0t | ₹1.0t | 32.1x | 38x | 5.6x |
| Mon, 06 Dec 2021 | ₹37.2t | ₹7.0t | ₹1.0t | 27.5x | 35.7x | 5.3x |
| Wed, 03 Nov 2021 | ₹35.4t | ₹6.9t | ₹1.1t | 48.7x | 33.5x | 5.1x |
| Fri, 01 Oct 2021 | ₹36.0t | ₹6.7t | ₹1.0t | 29.7x | 34.9x | 5.4x |
| Sun, 29 Aug 2021 | ₹35.4t | ₹6.7t | ₹1.0t | 26.7x | 34.1x | 5.3x |
| Mon, 05 Jul 2021 | ₹31.3t | ₹6.7t | ₹1.0t | 23.9x | 30.1x | 4.7x |
| Thu, 08 Apr 2021 | ₹27.9t | ₹6.4t | ₹969.9b | 21.8x | 28.8x | 4.4x |
| Sun, 10 Jan 2021 | ₹25.6t | ₹6.2t | ₹919.7b | 22.4x | 27.9x | 4.1x |
| Sat, 03 Oct 2020 | ₹21.4t | ₹6.1t | ₹882.2b | 19.6x | 24.3x | 3.5x |
| Tue, 07 Jul 2020 | ₹16.4t | ₹6.1t | ₹859.9b | 14.4x | 19x | 2.7x |
| Fri, 10 Apr 2020 | ₹14.0t | ₹6.1t | ₹866.8b | 11.6x | 16.1x | 2.3x |
| Thu, 02 Jan 2020 | ₹17.0t | ₹6.0t | ₹865.9b | 12.3x | 19.7x | 2.8x |
Price to Earnings Ratio
19.7x
Current Industry PE
- Investors are relatively neutral on the Indian Information Technology industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 27.3x.
- The industry is trading close to its 3-year average PS ratio of 4.0x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 9.0% per year over the last three years.
- Revenues for these companies have grown 12% 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 | 1.75% | |
| Tech | 1.78% | |
| Software | 4.47% | |
| Communications | 1.73% | |
| IT | 1.69% | |
| Electronic Equipment and Components | -0.086% | |
| Tech Hardware | -0.53% | |
| Semiconductors | -0.63% | |
Industry PE
- Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 73.9x.
- Analysts are expecting annual earnings growth of 74.2%, which is higher than its past year's earnings growth of 8.8% per year.
- Investors are most pessimistic about the IT industry, which is trading close to its 3-year average of 27.3x.
Forecasted Growth
- Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 74% over the next 5 years.
- This is better than its past earnings growth rate of 8.8% per year.
- In contrast, the IT industry is expected to see its earnings grow by 12% 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 | |
|---|---|---|---|---|---|
| TCS Tata Consultancy Services | ₹3.44k | 1.5% +₹181.1b | -5.5% | PE31.8x | |
| 507685 Wipro | ₹412.35 | 2.4% +₹53.1b | -35.6% | PE20x | |
| PAYTM One97 Communications | ₹536.95 | 15.4% +₹46.7b | -67.4% | PS5.3x | |
| LTI LTIMindtree | ₹5.07k | 2.6% +₹37.7b | -26.0% | PE58.5x | |
| 526299 Mphasis | ₹2.16k | 8.4% +₹31.6b | -30.1% | PE25.9x |