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Indian (NIFTY) Software Industry Analysis
UpdatedJan 20, 2025
DataAggregated Company Financials
Companies71
- 7D-4.5%
- 3M-9.2%
- 1Y3.9%
- YTD-11.7%
Over the last 7 days, the Software industry has dropped 4.5%, driven by Oracle Financial Services Software declining 12%. In the past year, the industry has gained 3.9%. As for the next few years, earnings are expected to grow by 17% per annum.
Industry Valuation and Performance
Has the Indian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 20 Jan 2025 | ₹3.1t | ₹464.8b | ₹65.4b | 37.9x | 47.1x | 6.6x |
| Wed, 18 Dec 2024 | ₹3.5t | ₹466.5b | ₹67.5b | 41.2x | 51.4x | 7.4x |
| Fri, 15 Nov 2024 | ₹3.1t | ₹463.5b | ₹71.8b | 35.1x | 43x | 6.7x |
| Sun, 13 Oct 2024 | ₹3.4t | ₹454.1b | ₹66.9b | 36.2x | 51x | 7.5x |
| Tue, 10 Sep 2024 | ₹3.3t | ₹452.8b | ₹66.6b | 37.7x | 50.1x | 7.4x |
| Thu, 08 Aug 2024 | ₹3.1t | ₹451.6b | ₹66.7b | 36.9x | 46.7x | 6.9x |
| Sat, 06 Jul 2024 | ₹3.2t | ₹438.2b | ₹64.4b | 41.3x | 50.4x | 7.4x |
| Mon, 03 Jun 2024 | ₹2.7t | ₹440.9b | ₹64.8b | 38.6x | 41.4x | 6.1x |
| Wed, 01 May 2024 | ₹2.8t | ₹441.9b | ₹64.5b | 41.1x | 43.2x | 6.3x |
| Fri, 29 Mar 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 38.1x | 46.1x | 6.6x |
| Sun, 25 Feb 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 39.3x | 46.6x | 6.7x |
| Tue, 23 Jan 2024 | ₹2.8t | ₹420.7b | ₹57.7b | 41.2x | 49x | 6.7x |
| Thu, 21 Dec 2023 | ₹2.5t | ₹411.1b | ₹53.4b | 41.1x | 46.1x | 6x |
| Sat, 18 Nov 2023 | ₹2.4t | ₹411.0b | ₹53.4b | 38x | 44.9x | 5.8x |
| Mon, 16 Oct 2023 | ₹2.4t | ₹458.5b | ₹57.9b | 34.3x | 40.8x | 5.2x |
| Wed, 13 Sep 2023 | ₹2.3t | ₹453.0b | ₹57.6b | 34.4x | 39.5x | 5x |
| Fri, 11 Aug 2023 | ₹2.2t | ₹453.0b | ₹57.6b | 34x | 38x | 4.8x |
| Sun, 09 Jul 2023 | ₹2.1t | ₹431.3b | ₹54.2b | 30.9x | 38x | 4.8x |
| Tue, 06 Jun 2023 | ₹2.0t | ₹429.8b | ₹53.7b | 29.9x | 37x | 4.6x |
| Thu, 04 May 2023 | ₹1.7t | ₹420.5b | ₹53.2b | 29x | 32.9x | 4.2x |
| Sat, 01 Apr 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 23.4x | 30.1x | 3.9x |
| Mon, 27 Feb 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 26.1x | 31.1x | 4x |
| Wed, 25 Jan 2023 | ₹1.7t | ₹401.7b | ₹52.9b | 29.6x | 31.4x | 4.1x |
| Fri, 23 Dec 2022 | ₹1.5t | ₹382.8b | ₹52.4b | 31.2x | 29.1x | 4x |
| Sun, 20 Nov 2022 | ₹1.6t | ₹382.3b | ₹52.3b | 35.4x | 30.2x | 4.1x |
| Tue, 18 Oct 2022 | ₹1.7t | ₹318.7b | ₹52.7b | 31.7x | 32.2x | 5.3x |
| Thu, 15 Sep 2022 | ₹1.8t | ₹365.8b | ₹53.2b | 34x | 33.5x | 4.9x |
| Sat, 13 Aug 2022 | ₹1.9t | ₹365.4b | ₹53.5b | 27.7x | 34.8x | 5.1x |
| Mon, 11 Jul 2022 | ₹1.8t | ₹392.5b | ₹57.4b | 28.9x | 30.8x | 4.5x |
| Wed, 08 Jun 2022 | ₹1.9t | ₹393.8b | ₹57.6b | 33.2x | 33.2x | 4.8x |
| Fri, 06 May 2022 | ₹1.9t | ₹382.1b | ₹57.9b | 28.8x | 33.6x | 5.1x |
| Sun, 03 Apr 2022 | ₹2.1t | ₹375.4b | ₹56.3b | 34.6x | 37.6x | 5.6x |
| Tue, 01 Mar 2022 | ₹1.8t | ₹375.4b | ₹56.3b | 26.9x | 32.8x | 4.9x |
| Thu, 27 Jan 2022 | ₹2.1t | ₹367.8b | ₹56.2b | 31x | 36.9x | 5.6x |
Price to Earnings Ratio
36.9x
Current Industry PE
- Investors are optimistic on the Indian Software industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 47.1x which is higher than its 3-year average PE of 39.2x.
- The 3-year average PS ratio of 5.5x is lower than the industry's current PS ratio of 6.6x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 5.2% per year over the last three years.
- Revenues for these companies have grown 8.1% 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% | |
| Software | -4.53% | |
| Systems Software | -1.18% | |
| Application Software | -6.61% | |
Industry PE
- Investors are most optimistic about the Systems Software industry, which is trading close to its 3-year average PE ratio of 57.9x.
- Analysts are expecting annual earnings growth of 15.7%, which is lower than the prior year's growth of 38.7% per year.
- Investors are most pessimistic about the Application Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 30.5x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 18% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- In contrast, the Systems Software industry is expected to see its earnings grow by 16% 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 | |
|---|---|---|---|---|---|
| 500408 Tata Elxsi | ₹6.21k | 3.5% +₹13.0b | -25.0% | PE47.8x | |
| BLACKBUCK Zinka Logistics Solutions | ₹421.50 | 4.5% +₹3.5b | n/a | PS22.8x | |
| TAC TAC Infosec | ₹1.54k | 10.4% +₹1.5b | n/a | PE148.1x | |
| 532407 MosChip Technologies | ₹208.45 | 2.0% +₹782.6m | 105.6% | PE237.3x | |
| ZAGGLE Zaggle Prepaid Ocean Services | ₹524.85 | 1.0% +₹620.3m | 137.4% | PE90.3x |
