Indian (NIFTY) Tech Sector Analysis

Sector Valuation and Performance

Has the Indian Tech Sector valuation changed over the past few years?

Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 27.5x which is higher than its 3-year average PE of 18.1x. It appears they are confident that earnings will grow faster in the future than they have historically.

Past Earnings Growth: The earnings for companies in the Information Technology industry have grown 9.8% per year over the last three years, and revenues for these companies have grown 8.6% 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?

Industry PE: Investors are most optimistic about the Semiconductors industry even though it's trading below its 3-year average PE ratio of 45.7x. It looks like they are confident that earnings will grow faster in the future than they have historically. Meanwhile, investors are most pessimistic about the Communications industry, which is trading close to its 3-year average of 22.2x.

Forecasted Growth: Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 34% over the next 5 years. However this is lower than its past earnings growth rate of 109% per year. Meanwhile, the Electronic Equipment and Components industry is expected to see its earnings grow by 7.4% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?