Infosys (NSE:INFY) Looks To Prolong Its Impressive Returns
Jun 15
Indian (NIFTY) IT Industry Analysis
UpdatedJun 15, 2024
DataAggregated Company Financials
Companies130
- 7D-1.4%
- 3M-8.0%
- 1Y20.5%
- YTD-2.3%
Over the last 7 days, the IT industry has dropped 1.4%, driven by Tata Consultancy Services declining 1.6%. In the past year, the industry has gained 21%. As for the next few years, earnings are expected to grow by 9.9% 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 |
|---|---|---|---|---|---|---|
| Sat, 15 Jun 2024 | ₹32.4t | ₹7.7t | ₹1.1t | 33.5x | 28.3x | 4.2x |
| Mon, 13 May 2024 | ₹31.3t | ₹7.8t | ₹1.1t | 35.3x | 27.6x | 4x |
| Wed, 10 Apr 2024 | ₹33.0t | ₹7.7t | ₹1.1t | 39.2x | 29.7x | 4.3x |
| Fri, 08 Mar 2024 | ₹34.5t | ₹7.7t | ₹1.1t | 36.7x | 31.1x | 4.5x |
| Sun, 04 Feb 2024 | ₹35.0t | ₹7.8t | ₹1.1t | 43.5x | 31x | 4.5x |
| Tue, 02 Jan 2024 | ₹33.6t | ₹7.8t | ₹1.1t | 42.2x | 29.5x | 4.3x |
| Thu, 30 Nov 2023 | ₹30.5t | ₹7.7t | ₹1.1t | 38.1x | 26.9x | 3.9x |
| Sat, 28 Oct 2023 | ₹28.3t | ₹7.7t | ₹1.1t | 40.1x | 25.1x | 3.7x |
| Mon, 25 Sep 2023 | ₹30.5t | ₹7.6t | ₹1.1t | 36.5x | 27.2x | 4x |
| Wed, 23 Aug 2023 | ₹28.8t | ₹7.6t | ₹1.1t | 37.7x | 25.6x | 3.8x |
| Fri, 21 Jul 2023 | ₹29.1t | ₹7.5t | ₹1.1t | 34.8x | 26x | 3.9x |
| Sun, 18 Jun 2023 | ₹27.0t | ₹7.4t | ₹1.1t | 33.7x | 24.6x | 3.7x |
| Tue, 16 May 2023 | ₹26.9t | ₹7.4t | ₹1.1t | 27.1x | 24.3x | 3.6x |
| Thu, 13 Apr 2023 | ₹27.4t | ₹7.1t | ₹1.1t | 25.8x | 25.4x | 3.9x |
| Sat, 11 Mar 2023 | ₹28.8t | ₹7.4t | ₹1.1t | 24.6x | 26.9x | 3.9x |
| Mon, 06 Feb 2023 | ₹29.9t | ₹7.4t | ₹1.1t | 26.7x | 28x | 4.1x |
| Wed, 04 Jan 2023 | ₹28.6t | ₹7.1t | ₹1.1t | 25.9x | 27.2x | 4x |
| Fri, 02 Dec 2022 | ₹30.5t | ₹7.1t | ₹1.0t | 25.8x | 29.2x | 4.3x |
| Sun, 30 Oct 2022 | ₹27.5t | ₹7.1t | ₹1.0t | 23.7x | 26.2x | 3.9x |
| Tue, 27 Sep 2022 | ₹25.9t | ₹6.8t | ₹1.0t | 23.9x | 25.2x | 3.8x |
| Thu, 25 Aug 2022 | ₹28.1t | ₹6.8t | ₹1.0t | 24.5x | 27.4x | 4.1x |
| Sat, 23 Jul 2022 | ₹27.5t | ₹5.8t | ₹1.0t | 26.6x | 26.9x | 4.8x |
| Mon, 20 Jun 2022 | ₹26.2t | ₹6.4t | ₹1.0t | 26x | 25.8x | 4.1x |
| Wed, 18 May 2022 | ₹29.3t | ₹6.4t | ₹1.0t | 29x | 28.8x | 4.6x |
| Fri, 15 Apr 2022 | ₹32.6t | ₹4.3t | ₹984.7b | 32.9x | 33.1x | 7.7x |
| Sun, 13 Mar 2022 | ₹33.3t | ₹6.1t | ₹980.1b | 31.2x | 34x | 5.4x |
| Tue, 08 Feb 2022 | ₹33.3t | ₹6.0t | ₹973.6b | 32.2x | 34.2x | 5.5x |
| Thu, 06 Jan 2022 | ₹36.6t | ₹5.8t | ₹957.3b | 32.2x | 38.2x | 6.4x |
| Sat, 04 Dec 2021 | ₹34.3t | ₹5.8t | ₹959.0b | 28.1x | 35.8x | 6x |
| Mon, 01 Nov 2021 | ₹31.9t | ₹5.7t | ₹975.3b | 30.1x | 32.7x | 5.6x |
| Wed, 29 Sep 2021 | ₹33.4t | ₹5.5t | ₹928.7b | 30.8x | 35.9x | 6.1x |
| Fri, 27 Aug 2021 | ₹32.8t | ₹5.5t | ₹937.0b | 26.3x | 35x | 5.9x |
| Sat, 03 Jul 2021 | ₹28.9t | ₹5.5t | ₹937.0b | 22.8x | 30.8x | 5.2x |
Price to Earnings Ratio
30.8x
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 29.2x.
- The industry is trading close to its 3-year average PS ratio of 4.5x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 6.8% per year over the last three years.
- Revenues for these companies have grown 12% 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 | 2.66% | |
| Tech | -0.24% | |
| IT | -1.36% | |
| Data Processing Services | 5.40% | |
| Internet Services and Infrastructure | 4.07% | |
| IT Consulting | -1.36% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 36.0x.
- 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 28.6x.
Forecasted Growth
- Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 14% 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 9.9% 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 | |
|---|---|---|---|---|---|
| LTIM LTIMindtree | ₹5.03k | 1.1% +₹16.4b | 0.4% | PE32.5x | |
| 539607 Blue Cloud Softech Solutions | ₹144.33 | 27.6% +₹6.8b | 140.5% | PE195.7x | |
| HAPPSTMNDS Happiest Minds Technologies | ₹882.00 | 4.8% +₹6.3b | -2.9% | PE55x | |
| 504067 Zensar Technologies | ₹696.50 | 3.5% +₹5.3b | 76.2% | PE23.7x | |
| RSYSTEMS R Systems International | ₹510.10 | 8.8% +₹4.9b | 23.0% | PE45.8x |
