Narrative Update • Jul 29
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- 7D9.1%
- 3M3.4%
- 1Y-16.3%
- YTD-21.6%
The IT industry is up 9.1% in the last week, with Tata Consultancy Services up 8.4%. During this same period, the Black Box underperformed, falling 7.5%. In contrast, the industry has lost 16% in the last 12 months. Looking forward, earnings are forecast to grow by 8.2% annually.
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 |
|---|---|---|---|---|---|---|
| Thu, 30 Jul 2026 | ₹25.8t | ₹9.5t | ₹1.4t | 23.1x | 19x | 2.7x |
| Sat, 27 Jun 2026 | ₹22.7t | ₹9.3t | ₹1.3t | 21.9x | 17.1x | 2.5x |
| Mon, 25 May 2026 | ₹24.5t | ₹9.3t | ₹1.3t | 22.2x | 18.3x | 2.6x |
| Wed, 22 Apr 2026 | ₹27.1t | ₹9.1t | ₹1.3t | 22.1x | 20.7x | 3x |
| Fri, 20 Mar 2026 | ₹24.4t | ₹9.0t | ₹1.3t | 19.8x | 18.9x | 2.7x |
| Sun, 15 Feb 2026 | ₹27.9t | ₹8.9t | ₹1.3t | 23x | 21.8x | 3.1x |
| Tue, 13 Jan 2026 | ₹32.7t | ₹8.7t | ₹1.3t | 25.1x | 25x | 3.7x |
| Thu, 11 Dec 2025 | ₹32.7t | ₹8.7t | ₹1.3t | 25.1x | 25x | 3.7x |
| Sat, 08 Nov 2025 | ₹30.5t | ₹8.7t | ₹1.3t | 27.2x | 23.4x | 3.5x |
| Mon, 06 Oct 2025 | ₹29.6t | ₹8.6t | ₹1.3t | 25.5x | 22.9x | 3.4x |
| Wed, 03 Sep 2025 | ₹31.0t | ₹8.5t | ₹1.3t | 26.2x | 24.1x | 3.6x |
| Fri, 01 Aug 2025 | ₹30.6t | ₹8.5t | ₹1.3t | 27.9x | 23.9x | 3.6x |
| Sun, 29 Jun 2025 | ₹33.9t | ₹8.3t | ₹1.3t | 30.1x | 27.1x | 4.1x |
| Tue, 27 May 2025 | ₹33.5t | ₹8.3t | ₹1.3t | 29x | 26.8x | 4x |
| Thu, 24 Apr 2025 | ₹31.7t | ₹8.3t | ₹1.2t | 28.1x | 25.4x | 3.8x |
| Sat, 22 Mar 2025 | ₹32.9t | ₹8.3t | ₹1.3t | 26.8x | 26.2x | 4x |
| Mon, 17 Feb 2025 | ₹36.5t | ₹8.2t | ₹1.2t | 29.1x | 29.3x | 4.5x |
| Wed, 15 Jan 2025 | ₹38.4t | ₹8.1t | ₹1.2t | 35.3x | 31.4x | 4.8x |
| Fri, 13 Dec 2024 | ₹40.7t | ₹8.0t | ₹1.2t | 37.8x | 33.9x | 5.1x |
| Sun, 10 Nov 2024 | ₹37.8t | ₹8.0t | ₹1.2t | 37.2x | 31.5x | 4.7x |
| Tue, 08 Oct 2024 | ₹38.1t | ₹7.8t | ₹1.2t | 36.4x | 32.6x | 4.9x |
| Thu, 05 Sep 2024 | ₹38.9t | ₹7.8t | ₹1.2t | 39.7x | 33.3x | 5x |
| Sat, 03 Aug 2024 | ₹36.7t | ₹7.8t | ₹1.2t | 40.4x | 31.4x | 4.7x |
| Mon, 01 Jul 2024 | ₹33.5t | ₹7.7t | ₹1.1t | 35.2x | 29.3x | 4.3x |
| Wed, 29 May 2024 | ₹31.8t | ₹7.7t | ₹1.1t | 35.7x | 27.9x | 4.1x |
| Fri, 26 Apr 2024 | ₹31.9t | ₹7.7t | ₹1.1t | 37.3x | 28x | 4.1x |
| Sun, 24 Mar 2024 | ₹32.9t | ₹7.7t | ₹1.1t | 34x | 29.6x | 4.3x |
| Tue, 20 Feb 2024 | ₹35.5t | ₹7.7t | ₹1.1t | 38.3x | 32x | 4.6x |
| Thu, 18 Jan 2024 | ₹34.6t | ₹7.8t | ₹1.1t | 44.3x | 30.5x | 4.4x |
| Sat, 16 Dec 2023 | ₹33.8t | ₹7.8t | ₹1.1t | 43x | 29.6x | 4.3x |
| Mon, 13 Nov 2023 | ₹28.8t | ₹7.7t | ₹1.1t | 38.5x | 25.4x | 3.7x |
| Wed, 11 Oct 2023 | ₹30.4t | ₹7.6t | ₹1.1t | 37.9x | 27.1x | 4x |
| Fri, 08 Sep 2023 | ₹29.9t | ₹7.6t | ₹1.1t | 36.4x | 26.6x | 4x |
| Sun, 06 Aug 2023 | ₹28.6t | ₹7.5t | ₹1.1t | 36.9x | 25.5x | 3.8x |
Price to Earnings Ratio
25.5x
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 19.0x which is lower than its 3-year average PE of 26.5x.
- The 3-year average PS ratio of 3.9x is higher than the industry's current PS ratio of 2.7x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 6.6% per year over the last three years.
- Revenues for these companies have grown 8.0% 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 | 0.62% | |
| Tech | 7.09% | |
| IT | 9.07% | |
| IT Consulting | 9.09% | |
| Data Processing Services | 5.26% | |
| Internet Services and Infrastructure | 4.48% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry even though it's trading below its 3-year average PE ratio of 427x.
- 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 26.5x.
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 8.2% 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 | |
|---|---|---|---|---|---|
| TCS Tata Consultancy Services | ₹2.43k | 8.4% +₹683.5b | -19.9% | PE17.7x | |
| INFY Infosys | ₹1.16k | 10.3% +₹436.1b | -23.5% | PE14.7x | |
| HCLTECH HCL Technologies | ₹1.35k | 8.7% +₹292.2b | -7.8% | PE20x | |
| LTM LTM | ₹4.44k | 12.0% +₹141.2b | -13.0% | PE25.2x | |
| COFORGE Coforge | ₹1.75k | 21.3% +₹136.3b | -0.07% | PE44x |
