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Indian (NIFTY) IT Industry Analysis
UpdatedNov 27, 2021
DataAggregated Company Financials
Companies122
- 7D-2.4%
- 3M-2.4%
- 1Y49.8%
- YTD32.8%
Over the last 7 days, the IT industry has dropped 2.4%, driven by a decline by Infosys of 4.9%. Meanwhile, One97 Communications actually outperformed within the industry, gaining 14% in the last week. This takes the industry's 12 month performance to a gain of 50%.
Industry Valuation and Performance
Has the Indian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 27 Nov 2021 | ₹33.1t | ₹5.8t | ₹957.4b | 27.9x |
| Mon, 25 Oct 2021 | ₹32.8t | ₹5.7t | ₹971.2b | 30.9x |
| Wed, 22 Sep 2021 | ₹34.1t | ₹5.5t | ₹927.9b | 31x |
| Fri, 20 Aug 2021 | ₹32.0t | ₹5.5t | ₹937.0b | 24.4x |
| Fri, 04 Jun 2021 | ₹26.9t | ₹5.3t | ₹876.7b | 24.3x |
| Mon, 08 Mar 2021 | ₹23.8t | ₹5.1t | ₹848.8b | 22.8x |
| Thu, 10 Dec 2020 | ₹21.6t | ₹5.0t | ₹820.1b | 19.6x |
| Wed, 02 Sep 2020 | ₹18.0t | ₹5.0t | ₹820.8b | 16.3x |
| Sat, 06 Jun 2020 | ₹14.5t | ₹5.0t | ₹833.8b | 11.4x |
| Tue, 10 Mar 2020 | ₹15.2t | ₹4.8t | ₹817.7b | 12.1x |
| Mon, 02 Dec 2019 | ₹15.3t | ₹4.7t | ₹801.8b | 12.2x |
| Thu, 05 Sep 2019 | ₹16.6t | ₹4.6t | ₹786.4b | 11.9x |
| Sun, 09 Jun 2019 | ₹16.5t | ₹4.5t | ₹768.6b | 14.2x |
| Sat, 02 Mar 2019 | ₹15.7t | ₹4.4t | ₹734.6b | 16.2x |
| Tue, 04 Dec 2018 | ₹14.9t | ₹4.3t | ₹751.1b | 15.8x |
PE Ratio
15.8x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 27.9x which is higher than its 3-year average PE of 17.5x. 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 IT industry have grown 8.4% per year over the last three years, and revenues for these companies have grown 10% 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 IT industry?
| Internet Services and Infrastructure | 11.23% | |
| Data Processing Services | 8.64% | |
| IT Consulting | -2.96% | |
Industry PE: Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 60.1x. 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 Data Processing Services industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 19.2x.
Forecasted Growth: Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 21% over the next 5 years. However this is lower than its past earnings growth rate of 53% per year. Meanwhile, 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?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| PAYTM One97 Communications | 14.2%+₹143.8b | n/a | PS36.8x | |
| 532735 R Systems International | 33.7%+₹9.6b | 172.8% | PE27.4x | |
| 500304 NIIT | 3.2%+₹1.8b | 140.1% | PE27.7x | |
| 506109 Genesys International | 15.4%+₹1.3b | 539.3% | PS10x | |
| 543232 Computer Age Management Services | 0.6%+₹848.5m | 112.6% | PE59.5x |
