Narrative Update • May 12
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- 7D-5.6%
- 3M-16.8%
- 1Y-31.4%
- YTD-29.3%
Over the last 7 days, the IT industry has dropped 4.8%, driven by Tata Consultancy Services declining 6.5%. Meanwhile, Black Box actually outperformed within the industry, gaining 16% in the last week. However, the industry is down 29% over the past year. As for the next few years, earnings are expected to grow by 8.7% per annum.
Industry Valuation and Performance
Has the Indian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 15 May 2026 | ₹23.4t | ₹9.3t | ₹1.3t | 22.3x | 17.5x | 2.5x |
| Sun, 12 Apr 2026 | ₹26.5t | ₹9.1t | ₹1.3t | 22.2x | 20.2x | 2.9x |
| Tue, 10 Mar 2026 | ₹25.8t | ₹9.0t | ₹1.3t | 20.4x | 20.1x | 2.9x |
| Thu, 05 Feb 2026 | ₹31.0t | ₹8.9t | ₹1.3t | 23.2x | 24.2x | 3.5x |
| Sat, 03 Jan 2026 | ₹33.0t | ₹8.7t | ₹1.3t | 25.3x | 25.2x | 3.8x |
| Mon, 01 Dec 2025 | ₹32.2t | ₹8.7t | ₹1.3t | 25.7x | 24.7x | 3.7x |
| Wed, 29 Oct 2025 | ₹31.1t | ₹8.7t | ₹1.3t | 28x | 24x | 3.6x |
| Fri, 26 Sep 2025 | ₹30.2t | ₹8.6t | ₹1.3t | 26.7x | 23.4x | 3.5x |
| Sun, 24 Aug 2025 | ₹30.8t | ₹8.5t | ₹1.3t | 26.8x | 24x | 3.6x |
| Tue, 22 Jul 2025 | ₹32.0t | ₹8.4t | ₹1.3t | 29.6x | 25.3x | 3.8x |
| Thu, 19 Jun 2025 | ₹34.1t | ₹8.4t | ₹1.3t | 30.3x | 27.1x | 4.1x |
| Sat, 17 May 2025 | ₹33.6t | ₹8.3t | ₹1.3t | 29x | 26.8x | 4x |
| Mon, 14 Apr 2025 | ₹29.5t | ₹8.3t | ₹1.3t | 25.9x | 23.6x | 3.6x |
| Wed, 12 Mar 2025 | ₹33.4t | ₹8.3t | ₹1.3t | 25.9x | 26.5x | 4x |
| Fri, 07 Feb 2025 | ₹37.8t | ₹8.2t | ₹1.2t | 32.7x | 30.3x | 4.6x |
| Sun, 05 Jan 2025 | ₹38.6t | ₹8.0t | ₹1.2t | 35.1x | 32x | 4.8x |
| Tue, 03 Dec 2024 | ₹38.9t | ₹8.0t | ₹1.2t | 36.8x | 32.4x | 4.9x |
| Thu, 31 Oct 2024 | ₹37.3t | ₹8.0t | ₹1.2t | 37.4x | 31.2x | 4.7x |
| Sat, 28 Sep 2024 | ₹38.4t | ₹7.8t | ₹1.2t | 39.5x | 32.9x | 4.9x |
| Mon, 26 Aug 2024 | ₹37.9t | ₹7.8t | ₹1.2t | 38.8x | 32.5x | 4.8x |
| Wed, 24 Jul 2024 | ₹36.8t | ₹7.8t | ₹1.2t | 36.9x | 31.6x | 4.7x |
| Fri, 21 Jun 2024 | ₹32.5t | ₹7.7t | ₹1.1t | 34.3x | 28.4x | 4.2x |
| Sun, 19 May 2024 | ₹31.5t | ₹7.7t | ₹1.1t | 37.2x | 27.7x | 4.1x |
| Tue, 16 Apr 2024 | ₹32.5t | ₹7.8t | ₹1.1t | 38.2x | 29x | 4.2x |
| Thu, 14 Mar 2024 | ₹34.6t | ₹7.7t | ₹1.1t | 33.5x | 31.2x | 4.5x |
| Sat, 10 Feb 2024 | ₹35.1t | ₹7.7t | ₹1.1t | 41.8x | 31.6x | 4.6x |
| Mon, 08 Jan 2024 | ₹32.9t | ₹7.8t | ₹1.1t | 42.7x | 28.8x | 4.2x |
| Wed, 06 Dec 2023 | ₹31.0t | ₹7.8t | ₹1.1t | 38.4x | 27.1x | 4x |
| Fri, 03 Nov 2023 | ₹28.8t | ₹7.7t | ₹1.1t | 37.9x | 25.4x | 3.7x |
| Sun, 01 Oct 2023 | ₹29.7t | ₹7.6t | ₹1.1t | 37.7x | 26.4x | 3.9x |
| Tue, 29 Aug 2023 | ₹28.6t | ₹7.6t | ₹1.1t | 36.1x | 25.6x | 3.8x |
| Thu, 27 Jul 2023 | ₹28.1t | ₹7.5t | ₹1.1t | 32.8x | 25x | 3.7x |
| Sat, 24 Jun 2023 | ₹27.1t | ₹7.4t | ₹1.1t | 33.2x | 24.7x | 3.7x |
| Mon, 22 May 2023 | ₹26.9t | ₹7.4t | ₹1.1t | 27.7x | 24.2x | 3.6x |
Price to Earnings Ratio
24.2x
Current Industry PE
- Investors are pessimistic on the Indian IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 17.8x which is lower than its 3-year average PE of 27.0x.
- The 3-year average PS ratio of 4.0x is higher than the industry's current PS ratio of 2.6x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 6.4% per year over the last three years.
- Revenues for these companies have grown 7.7% 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 Market | -2.65% | |
| Tech | -5.48% | |
| IT | -5.56% | |
| Internet Services and Infrastructure | -2.35% | |
| Data Processing Services | -3.62% | |
| IT Consulting | -5.57% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 324x.
- 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, which is trading below its 3-year average of 27.0x.
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 better than its past earnings growth rate of 13% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 8.7% 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 | |
|---|---|---|---|---|---|
| 500463 Black Box | ₹852.90 | 16.3% +₹22.2b | 96.6% | PE74.2x | |
| HEXT Hexaware Technologies | ₹483.05 | 4.9% +₹13.7b | -36.9% | PE21.1x | |
| KODYTECH Kody Technolab | ₹834.55 | 10.4% +₹1.0b | -8.7% | PE63.5x | |
| 539843 NINtec Systems | ₹588.90 | 8.6% +₹861.9m | 28.8% | PE35.7x | |
| EXPLEOSOL Expleo Solutions | ₹887.60 | 6.3% +₹811.7m | -2.6% | PE12.9x |
