HCL Technologies' (NSE:HCLTECH) Earnings Offer More Than Meets The Eye
Jan 20
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Indian (NIFTY) IT Industry Analysis
UpdatedJan 20, 2025
DataAggregated Company Financials
Companies137
- 7D-5.5%
- 3M-0.02%
- 1Y10.4%
- YTD-2.5%
Over the last 7 days, the IT industry has dropped 5.5%, and Infosys contributed the most with a 7.7% decline. On the other hand Magellanic Cloud is actually up 22%. In the past year, the industry has gained 10%. As for the next few years, earnings are expected to grow by 11% 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 |
|---|---|---|---|---|---|---|
| Mon, 20 Jan 2025 | ₹37.4t | ₹8.1t | ₹1.2t | 35.3x | 30.1x | 4.6x |
| Wed, 18 Dec 2024 | ₹40.3t | ₹8.0t | ₹1.2t | 37.8x | 33.5x | 5x |
| Fri, 15 Nov 2024 | ₹37.9t | ₹8.0t | ₹1.2t | 38.2x | 31.6x | 4.8x |
| Sun, 13 Oct 2024 | ₹38.0t | ₹7.9t | ₹1.2t | 41.4x | 32.4x | 4.8x |
| Tue, 10 Sep 2024 | ₹38.5t | ₹7.8t | ₹1.2t | 39.9x | 32.9x | 4.9x |
| Thu, 08 Aug 2024 | ₹36.1t | ₹7.8t | ₹1.2t | 39.5x | 30.9x | 4.6x |
| Sat, 06 Jul 2024 | ₹34.7t | ₹7.7t | ₹1.1t | 40.1x | 30.4x | 4.5x |
| Mon, 03 Jun 2024 | ₹30.5t | ₹7.7t | ₹1.1t | 34.6x | 26.8x | 3.9x |
| Wed, 01 May 2024 | ₹31.4t | ₹7.7t | ₹1.1t | 38.8x | 27.7x | 4.1x |
| Fri, 29 Mar 2024 | ₹32.3t | ₹7.7t | ₹1.1t | 31.7x | 29.1x | 4.2x |
| Sun, 25 Feb 2024 | ₹35.2t | ₹7.7t | ₹1.1t | 37.6x | 31.8x | 4.6x |
| Tue, 23 Jan 2024 | ₹34.3t | ₹7.8t | ₹1.1t | 41x | 30.1x | 4.4x |
| Thu, 21 Dec 2023 | ₹32.9t | ₹7.8t | ₹1.1t | 42.1x | 28.8x | 4.2x |
| Sat, 18 Nov 2023 | ₹30.2t | ₹7.7t | ₹1.1t | 38.7x | 26.6x | 3.9x |
| Mon, 16 Oct 2023 | ₹29.9t | ₹7.6t | ₹1.1t | 37.5x | 26.3x | 3.9x |
| Wed, 13 Sep 2023 | ₹30.6t | ₹7.6t | ₹1.1t | 35.9x | 27.2x | 4x |
| Fri, 11 Aug 2023 | ₹28.8t | ₹7.5t | ₹1.1t | 38.3x | 25.7x | 3.8x |
| Sun, 09 Jul 2023 | ₹27.9t | ₹7.4t | ₹1.1t | 32.7x | 25.4x | 3.8x |
| Tue, 06 Jun 2023 | ₹27.7t | ₹7.4t | ₹1.1t | 30x | 25.1x | 3.7x |
| Thu, 04 May 2023 | ₹26.4t | ₹7.4t | ₹1.1t | 26x | 23.9x | 3.6x |
| Sat, 01 Apr 2023 | ₹27.1t | ₹7.1t | ₹1.1t | 23.9x | 25.1x | 3.8x |
| Mon, 27 Feb 2023 | ₹29.5t | ₹7.4t | ₹1.1t | 25.4x | 27.5x | 4x |
| Wed, 25 Jan 2023 | ₹29.7t | ₹7.3t | ₹1.1t | 26.4x | 27.8x | 4x |
| Fri, 23 Dec 2022 | ₹28.3t | ₹7.1t | ₹1.1t | 25.2x | 27x | 4x |
| Sun, 20 Nov 2022 | ₹28.8t | ₹7.1t | ₹1.0t | 23.6x | 27.6x | 4.1x |
| Tue, 18 Oct 2022 | ₹27.0t | ₹7.0t | ₹1.0t | 24.1x | 25.9x | 3.8x |
| Thu, 15 Sep 2022 | ₹27.3t | ₹6.8t | ₹1.0t | 26.3x | 26.7x | 4x |
| Sat, 13 Aug 2022 | ₹29.1t | ₹6.8t | ₹1.0t | 27.7x | 28.4x | 4.3x |
| Mon, 11 Jul 2022 | ₹27.7t | ₹6.5t | ₹1.0t | 26.5x | 27x | 4.3x |
| Wed, 08 Jun 2022 | ₹28.6t | ₹6.4t | ₹1.0t | 27.3x | 28.2x | 4.5x |
| Fri, 06 May 2022 | ₹30.2t | ₹6.3t | ₹1.0t | 30.1x | 30.1x | 4.8x |
| Sun, 03 Apr 2022 | ₹34.1t | ₹6.1t | ₹977.1b | 31.9x | 34.9x | 5.6x |
| Tue, 01 Mar 2022 | ₹32.1t | ₹6.1t | ₹974.8b | 29.1x | 32.9x | 5.3x |
| Thu, 27 Jan 2022 | ₹33.3t | ₹6.0t | ₹971.8b | 32.6x | 34.2x | 5.5x |
Price to Earnings Ratio
34.2x
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 28.7x.
- The industry is trading close to its 3-year average PS ratio of 4.3x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 8.5% per year over the last three years.
- Revenues for these companies have grown 11% 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 | -0.26% | |
| Tech | -5.12% | |
| IT | -5.46% | |
| Data Processing Services | 1.36% | |
| Internet Services and Infrastructure | -3.43% | |
| IT Consulting | -5.46% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 59.6x.
- 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 close to its 3-year average of 28.2x.
Forecasted Growth
- Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 22% over the next 5 years.
- However this is lower than its past earnings growth rate of 35% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|
| 507685 Wipro | ₹300.15 | 2.8% +₹86.8b | 25.6% | PE25.3x | |
| TECHM Tech Mahindra | ₹1.67k | 0.9% +₹13.2b | 20.9% | PE39.5x | |
| PERSISTENT Persistent Systems | ₹6.09k | 1.5% +₹12.9b | 53.8% | PE72.6x | |
| 500463 Black Box | ₹645.50 | 7.7% +₹7.9b | 124.1% | PE64.2x | |
| 538891 Magellanic Cloud | ₹80.20 | 19.0% +₹7.5b | -11.8% | PE41.7x |
