Is HCL Technologies (NSE:HCLTECH) A Risky Investment?
Oct 01
Indian (NIFTY) IT Consulting Industry Analysis
UpdatedOct 03, 2023
DataAggregated Company Financials
Companies122
- 7D-1.8%
- 3M5.7%
- 1Y12.5%
- YTD8.2%
Over the last 7 days, the IT Consulting industry has dropped 2.8%, driven by pullbacks in Tata Consultancy Services and Infosys of 2.1% and 4.1%, respectively. In the past year, the industry has gained 15%. Looking forward, earnings are forecast to grow by 10% annually.
Industry Valuation and Performance
Has the Indian IT Consulting Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 03 Oct 2023 | ₹29.7t | ₹7.6t | ₹1.1t | 36.1x | 26.4x | 3.9x |
| Thu, 31 Aug 2023 | ₹28.9t | ₹7.6t | ₹1.1t | 35x | 25.8x | 3.8x |
| Sat, 29 Jul 2023 | ₹27.8t | ₹7.5t | ₹1.1t | 32.2x | 24.9x | 3.7x |
| Mon, 26 Jun 2023 | ₹27.1t | ₹7.4t | ₹1.1t | 33x | 24.6x | 3.7x |
| Wed, 24 May 2023 | ₹27.4t | ₹7.4t | ₹1.1t | 27.7x | 24.7x | 3.7x |
| Fri, 21 Apr 2023 | ₹25.5t | ₹7.2t | ₹1.1t | 24.6x | 23.4x | 3.6x |
| Sun, 19 Mar 2023 | ₹27.2t | ₹7.1t | ₹1.1t | 23.8x | 25.2x | 3.8x |
| Tue, 14 Feb 2023 | ₹28.9t | ₹7.1t | ₹1.1t | 25.5x | 26.8x | 4.1x |
| Thu, 12 Jan 2023 | ₹27.6t | ₹6.9t | ₹1.1t | 25.3x | 25.9x | 4x |
| Sat, 10 Dec 2022 | ₹27.9t | ₹6.8t | ₹1.1t | 26x | 26.4x | 4.1x |
| Mon, 07 Nov 2022 | ₹26.9t | ₹6.8t | ₹1.1t | 23.5x | 25.6x | 4x |
| Wed, 05 Oct 2022 | ₹25.8t | ₹6.5t | ₹1.0t | 22.7x | 24.8x | 4x |
| Fri, 02 Sep 2022 | ₹26.1t | ₹6.5t | ₹1.0t | 24.7x | 25.4x | 4x |
| Sun, 31 Jul 2022 | ₹27.3t | ₹6.4t | ₹1.0t | 25.3x | 26.6x | 4.3x |
| Tue, 28 Jun 2022 | ₹26.9t | ₹6.1t | ₹1.0t | 26.6x | 26.3x | 4.4x |
| Thu, 26 May 2022 | ₹26.1t | ₹6.1t | ₹1.0t | 25.7x | 25.5x | 4.3x |
| Sat, 23 Apr 2022 | ₹30.3t | ₹6.0t | ₹996.4b | 31.8x | 30.4x | 5.1x |
| Mon, 21 Mar 2022 | ₹32.8t | ₹5.8t | ₹982.0b | 32.2x | 33.4x | 5.6x |
| Wed, 16 Feb 2022 | ₹32.4t | ₹5.8t | ₹980.4b | 31.4x | 33.1x | 5.6x |
| Fri, 14 Jan 2022 | ₹35.3t | ₹5.7t | ₹973.8b | 35.9x | 36.2x | 6.2x |
| Sun, 12 Dec 2021 | ₹32.8t | ₹5.6t | ₹966.8b | 31.6x | 33.9x | 5.9x |
| Tue, 09 Nov 2021 | ₹32.4t | ₹5.5t | ₹959.3b | 29.5x | 33.8x | 5.9x |
| Thu, 07 Oct 2021 | ₹32.8t | ₹5.3t | ₹919.2b | 35.6x | 35.7x | 6.2x |
| Sat, 04 Sep 2021 | ₹32.9t | ₹5.4t | ₹924.4b | 29.8x | 35.6x | 6.2x |
| Mon, 02 Aug 2021 | ₹29.1t | ₹5.4t | ₹924.4b | 27.8x | 31.4x | 5.4x |
| Thu, 06 May 2021 | ₹25.2t | ₹5.1t | ₹866.3b | 22.8x | 29.1x | 4.9x |
| Sun, 07 Feb 2021 | ₹24.3t | ₹4.9t | ₹837.2b | 22.5x | 29x | 4.9x |
| Sat, 31 Oct 2020 | ₹21.0t | ₹4.9t | ₹809.0b | 19.5x | 26x | 4.3x |
Price to Earnings Ratio
24.5x
Current Industry PE
- Investors are relatively neutral on the Indian IT Consulting and Other Services 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 28.6x.
- The 3-year average PS ratio of 4.7x is higher than the industry's current PS ratio of 3.9x.
Past Earnings Growth
- The earnings for companies in the IT Consulting and Other Services industry have grown 12% per year over the last three years.
- Revenues for these companies have grown 16% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Comparison
How does Indian IT Consulting compare with similar industries?
| IN Market | 0.25% | |
| Tech | -1.37% | |
| IT | -1.81% | |
| IT Consulting | -1.81% | |
| Internet Services and Infrastructure | 12.40% | |
| Data Processing Services | 0.96% | |
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.
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 | ₹185.30 | 3.7% +₹1.1b | 33.3% | PE96.5x | |
| 512379 Cressanda Solutions | ₹24.12 | 7.9% +₹749.0m | -29.1% | PE185.5x | |
| 538891 Magellanic Cloud | ₹442.95 | 1.4% +₹689.6m | 449.5% | PE62.5x | |
| ACCELYA Accelya Solutions India | ₹1.63k | 2.5% +₹588.8m | 42.8% | PE19.2x | |
| 517344 Mindteck (India) | ₹165.00 | 12.2% +₹448.1m | 23.7% | PE18.8x |