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Indian (NIFTY) Tech Sector Analysis

UpdatedDec 02, 2021
DataAggregated Company Financials
Companies263
  • 7D3.5%
  • 3M0.2%
  • 1Y54.1%
  • YTD39.7%

Over the last 7 days, the Tech industry has risen 3.5%, driven by gains from Tata Consultancy Services of 5.6%. Meanwhile, One97 Communications actually underperformed within the industry, shrinking 7.5% in the last week. This takes the industry's 12 month performance to a gain of 54%.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPE
Sun, 05 Dec 2021₹36.7t₹7.0t₹1.0t26.8x
Tue, 02 Nov 2021₹35.4t₹6.9t₹1.1t28.4x
Thu, 30 Sep 2021₹36.2t₹6.7t₹1.0t29.4x
Sat, 28 Aug 2021₹35.4t₹6.7t₹1.0t26.7x
Sun, 04 Jul 2021₹31.3t₹6.7t₹1.0t23.9x
Wed, 07 Apr 2021₹27.9t₹6.4t₹969.9b21.8x
Sat, 09 Jan 2021₹25.6t₹6.2t₹919.7b22.4x
Fri, 02 Oct 2020₹21.4t₹6.1t₹882.2b19.6x
Mon, 06 Jul 2020₹16.4t₹6.1t₹859.9b14.4x
Thu, 09 Apr 2020₹14.0t₹6.1t₹866.8b11.6x
Wed, 01 Jan 2020₹17.0t₹6.0t₹865.9b12.3x
Sat, 05 Oct 2019₹17.0t₹5.9t₹851.8b12.6x
Tue, 09 Jul 2019₹17.7t₹5.7t₹835.6b14.3x
Mon, 01 Apr 2019₹16.9t₹5.6t₹823.7b15.7x
Thu, 03 Jan 2019₹15.9t₹5.5t₹787.7b17.1x
PE Ratio

17.1x

Total Market Cap: ₹15.9tTotal Earnings: ₹787.7bTotal Revenue: ₹5.5t0%0%0%3 Year10 Year
20202021

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?

IT3.77%
Communications1.43%
Software0.79%
Tech Hardware0.62%
Semiconductors-0.37%
Electronic Equipment and Components-0.56%

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?

Company7D1YValuation
TCS Tata Consultancy Services5.6%+₹716.1b33.5%PE36.8x
INFY Infosys2.6%+₹186.4b53.0%PE34.5x
HCLTECH HCL Technologies5.5%+₹166.5b36.4%PE24.2x
507685 Wipro3.1%+₹117.4b77.5%PE29x
TECHM Tech Mahindra4.3%+₹57.7b72.6%PE27.5x
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500304

₹401.55

NIIT

7D

-5.2%

1Y

136.1%