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Nov 27
Indian (NIFTY) IT Industry Analysis
UpdatedNov 27, 2022
DataAggregated Company Financials
Companies134
- 7D1.6%
- 3M8.4%
- 1Y-11.3%
- YTD-20.6%
Over the last 7 days, the IT industry has risen 1.6%, driven by gains in Infosys and Tata Consultancy Services of 2.7% and 1.4%, respectively. In the same time, One97 Communications was down 15%. However, the industry is down 11% over the past year. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 28 Nov 2022 | ₹29.3t | ₹7.1t | ₹1.0t | 24.2x | 28x | 4.1x |
| Wed, 26 Oct 2022 | ₹27.7t | ₹7.1t | ₹1.0t | 24x | 26.4x | 3.9x |
| Fri, 23 Sep 2022 | ₹26.0t | ₹6.8t | ₹1.0t | 24.3x | 25.4x | 3.8x |
| Sun, 21 Aug 2022 | ₹29.1t | ₹6.8t | ₹1.0t | 24.9x | 28.4x | 4.3x |
| Tue, 19 Jul 2022 | ₹25.8t | ₹6.6t | ₹1.0t | 26x | 25.1x | 3.9x |
| Thu, 16 Jun 2022 | ₹27.2t | ₹6.4t | ₹1.0t | 27.1x | 26.8x | 4.3x |
| Sat, 14 May 2022 | ₹28.8t | ₹6.4t | ₹1.0t | 28.4x | 28.4x | 4.5x |
| Mon, 11 Apr 2022 | ₹33.3t | ₹6.1t | ₹976.9b | 34x | 34.1x | 5.5x |
| Wed, 09 Mar 2022 | ₹32.2t | ₹6.1t | ₹981.6b | 30.3x | 32.8x | 5.3x |
| Fri, 04 Feb 2022 | ₹33.8t | ₹6.0t | ₹974.1b | 30.8x | 34.7x | 5.6x |
| Sun, 02 Jan 2022 | ₹36.5t | ₹5.8t | ₹957.1b | 32.2x | 38.1x | 6.3x |
| Tue, 30 Nov 2021 | ₹33.4t | ₹5.8t | ₹960.0b | 27.4x | 34.8x | 5.8x |
| Thu, 28 Oct 2021 | ₹32.7t | ₹5.7t | ₹974.8b | 30.2x | 33.5x | 5.7x |
| Sat, 25 Sep 2021 | ₹34.8t | ₹5.5t | ₹928.3b | 31.4x | 37.5x | 6.4x |
| Mon, 23 Aug 2021 | ₹32.5t | ₹5.5t | ₹937.0b | 24.5x | 34.7x | 5.9x |
| Sat, 10 Jul 2021 | ₹28.9t | ₹5.5t | ₹937.0b | 22.8x | 30.8x | 5.2x |
| Fri, 02 Apr 2021 | ₹25.9t | ₹5.3t | ₹876.7b | 20.9x | 29.6x | 4.9x |
| Mon, 04 Jan 2021 | ₹23.9t | ₹5.1t | ₹848.8b | 22.5x | 28.2x | 4.7x |
| Thu, 08 Oct 2020 | ₹20.0t | ₹5.0t | ₹818.2b | 19.1x | 24.5x | 4x |
| Wed, 01 Jul 2020 | ₹15.3t | ₹5.0t | ₹820.8b | 13.9x | 18.7x | 3x |
| Sat, 04 Apr 2020 | ₹13.2t | ₹5.0t | ₹833.8b | 10.7x | 15.9x | 2.6x |
| Tue, 07 Jan 2020 | ₹16.0t | ₹4.8t | ₹817.7b | 11x | 19.5x | 3.3x |
Price to Earnings Ratio
19.1x
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 27.1x.
- The industry is trading close to its 3-year average PS ratio of 4.4x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 9.2% 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 Market | 0.87% | |
| Tech | 1.58% | |
| IT | 1.62% | |
| Internet Services and Infrastructure | 13.08% | |
| IT Consulting | 1.83% | |
| Data Processing Services | -5.65% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 26.6x.
- Analysts are expecting annual earnings growth of 11.5%, which is lower than the prior year's growth of 18.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 38% over the next 5 years.
- This is better than its past earnings growth rate of 30% per year.
- 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| INFY Infosys | ₹1.64k | 2.7% +₹177.5b | -3.3% | PE28.3x | |
| TCS Tata Consultancy Services | ₹3.39k | 1.4% +₹169.0b | -1.7% | PE31.3x | |
| HCLTECH HCL Technologies | ₹1.13k | 2.3% +₹67.8b | 1.6% | PE20.9x | |
| 507685 Wipro | ₹402.65 | 2.2% +₹47.4b | -35.2% | PE19.5x | |
| 533179 Persistent Systems | ₹3.97k | 6.3% +₹17.3b | 1.5% | PE35.9x |
