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Indian (NIFTY) IT Industry Analysis

UpdatedFeb 21, 2024
DataAggregated Company Financials
Companies130
  • 7D-0.8%
  • 3M16.4%
  • 1Y21.7%
  • YTD6.2%

The IT is pretty flat in the last 7 days, but Wipro has stood out, gaining 3.8%. As for the the longer term, the industry is up 22% over the past 12 months. Looking forward, earnings are forecast to grow by 12% annually.

Industry Valuation and Performance

Has the Indian IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 21 Feb 2024₹35.1t₹7.7t₹1.1t38x31.7x4.6x
Fri, 19 Jan 2024₹34.5t₹7.8t₹1.1t44.1x30.3x4.4x
Sun, 17 Dec 2023₹33.8t₹7.8t₹1.1t43x29.6x4.3x
Tue, 14 Nov 2023₹28.8t₹7.7t₹1.1t38.3x25.4x3.7x
Thu, 12 Oct 2023₹30.4t₹7.6t₹1.1t37.6x27x4x
Sat, 09 Sep 2023₹29.9t₹7.6t₹1.1t37.4x26.6x4x
Mon, 07 Aug 2023₹28.6t₹7.5t₹1.1t36.9x25.5x3.8x
Wed, 05 Jul 2023₹28.1t₹7.4t₹1.1t33.5x25.5x3.8x
Fri, 02 Jun 2023₹27.9t₹7.4t₹1.1t28.1x25.3x3.8x
Sun, 30 Apr 2023₹26.4t₹7.4t₹1.1t26x24x3.6x
Tue, 28 Mar 2023₹26.4t₹7.1t₹1.1t23.2x24.5x3.7x
Thu, 23 Feb 2023₹29.6t₹7.4t₹1.1t25.6x27.5x4x
Sat, 21 Jan 2023₹29.1t₹7.3t₹1.1t27.2x27.4x4x
Mon, 19 Dec 2022₹28.3t₹7.1t₹1.0t26.1x27x4x
Wed, 16 Nov 2022₹29.0t₹7.1t₹1.0t24.1x27.8x4.1x
Fri, 14 Oct 2022₹26.7t₹7.0t₹1.0t23.8x25.7x3.8x
Sun, 11 Sep 2022₹27.9t₹6.8t₹1.0t26.2x27.2x4.1x
Tue, 09 Aug 2022₹29.2t₹6.7t₹1.0t27.6x28.5x4.3x
Thu, 07 Jul 2022₹27.5t₹6.4t₹1.0t26.6x26.9x4.3x
Sat, 04 Jun 2022₹29.1t₹6.4t₹1.0t27.8x28.8x4.6x
Mon, 02 May 2022₹30.4t₹6.3t₹1.0t30.4x30.2x4.8x
Wed, 30 Mar 2022₹33.9t₹6.1t₹977.5b31.1x34.7x5.6x
Fri, 25 Feb 2022₹30.9t₹6.1t₹970.8b27.7x31.8x5.1x
Sun, 23 Jan 2022₹34.4t₹6.0t₹969.8b33.5x35.5x5.7x
Tue, 21 Dec 2021₹34.1t₹5.8t₹964.0b29.7x35.4x5.9x
Thu, 18 Nov 2021₹33.4t₹5.7t₹974.8b28.2x34.3x5.8x
Sat, 16 Oct 2021₹33.5t₹5.6t₹965.1b33.9x34.7x5.9x
Mon, 13 Sep 2021₹33.5t₹5.5t₹930.6b31.5x36x6.1x
Wed, 11 Aug 2021₹30.4t₹5.5t₹937.0b24.9x32.5x5.5x
Sun, 06 Jun 2021₹26.9t₹5.3t₹876.7b24.3x30.7x5.1x
Wed, 10 Mar 2021₹23.8t₹5.1t₹848.8b22.8x28x4.7x
Price to Earnings Ratio

28x


Total Market Cap: ₹23.8tTotal Earnings: ₹848.8bTotal Revenue: ₹5.1tTotal Market Cap vs Earnings and Revenue0%0%0%
Indian IT Industry Price to Earnings3Y Average 29.2x202220232024
Current Industry PE
  • Investors are relatively neutral on the Indian IT 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 29.2x.
  • The industry is trading close to its 3-year average PS ratio of 4.6x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 9.4% per year over the last three years.
  • Revenues for these companies have grown 15% 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 industry?

IN Market2.82%
Tech-0.43%
IT-0.82%
Internet Services and Infrastructure9.92%
Data Processing Services4.02%
IT Consulting-0.83%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 21.1x.
    • It looks like they are confident that earnings will grow faster in the future than they have historically.
  • Investors are most pessimistic about the IT Consulting industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 28.6x.
Forecasted Growth
  • Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 16% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting 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?

CompanyLast Price7D1YValuation
507685 Wipro₹531.803.8%
+₹102.5b
32.0%PE24.6x
526299 Mphasis₹2.77k5.1%
+₹25.5b
25.2%PE33.3x
TATATECH Tata Technologies₹1.15k4.4%
+₹19.6b
n/aPE63.3x
SONATSOFTW Sonata Software₹821.155.2%
+₹11.2b
127.2%PE73x
MASTEK Mastek₹3.06k6.5%
+₹6.3b
85.5%PE33.6x
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