Indian (NIFTY) Software Industry Analysis
- 7D2.0%
- 3M10.4%
- 1Y95.9%
- YTD91.7%
Over the last 7 days, the Software industry has risen 2.0%, driven by gains from Tanla Platforms of 20%. This takes the industry's 12 month performance to a gain of 96%.
Industry Valuation and Performance
Has the Indian Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Wed, 08 Dec 2021 | ₹1.8t | ₹355.3b | ₹54.6b | 26.2x |
| Fri, 05 Nov 2021 | ₹1.8t | ₹354.1b | ₹55.1b | 27.5x |
| Sun, 03 Oct 2021 | ₹1.7t | ₹341.9b | ₹75.4b | 29.1x |
| Tue, 31 Aug 2021 | ₹1.7t | ₹338.9b | ₹75.4b | 30.5x |
| Wed, 07 Jul 2021 | ₹1.5t | ₹338.7b | ₹75.4b | 26.9x |
| Sat, 10 Apr 2021 | ₹1.1t | ₹330.2b | ₹72.0b | 23x |
| Fri, 01 Jan 2021 | ₹954.1b | ₹343.0b | ₹62.0b | 16.3x |
| Mon, 05 Oct 2020 | ₹770.7b | ₹338.9b | ₹56.0b | 15.4x |
| Thu, 09 Jul 2020 | ₹511.0b | ₹328.1b | ₹29.3b | 10x |
| Wed, 01 Apr 2020 | ₹355.1b | ₹317.2b | ₹20.4b | 7.5x |
| Sat, 04 Jan 2020 | ₹535.6b | ₹326.3b | ₹26.6b | 14.2x |
| Tue, 08 Oct 2019 | ₹594.3b | ₹319.6b | ₹28.0b | 16.1x |
| Mon, 01 Jul 2019 | ₹660.9b | ₹311.2b | ₹29.8b | 17.3x |
| Thu, 04 Apr 2019 | ₹661.8b | ₹295.1b | ₹35.9b | 17.1x |
| Sun, 06 Jan 2019 | ₹712.4b | ₹299.5b | ₹35.0b | 17.9x |
17.9x
Current Industry PE: Investors are more optimistic on the industry, considering it's trading at a PE ratio of 27.5x which is higher than its 3-year average PE of 17.7x. It appears they are confident that earnings will grow faster in the future than they have historically.
Past Earnings Growth: The earnings for companies in the Software industry have grown 16% per year over the last three years, and revenues for these companies have grown 5.9% 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 Software industry?
| Application Software | 2.23% | |
| Systems Software | 1.63% | |
Industry PE: Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 17.4x. However analysts are expecting annual earnings growth of 20%, which is lower than the prior year's growth of 50% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Application Software industry. Although, investor sentiment seems to have improved given its trading above its 3-year average of 17.9x.
Forecasted Growth: Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 20% over the next 5 years. However this is lower than its past earnings growth rate of 50% per year. Meanwhile, the Application Software industry is expected to see its earnings grow by 17% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| 532790 Tanla Platforms | 20.3%+₹40.2b | 104.1% | PE54.7x | |
| 532466 Oracle Financial Services Software | 2.1%+₹7.5b | 33.9% | PE19.6x | |
| 538835 Intellect Design Arena | 7.7%+₹6.5b | 136.6% | PE29x | |
| 543228 Route Mobile | 3.1%+₹3.5b | 54.9% | PE78x | |
| RAMCOSYS Ramco Systems | 21.7%+₹2.5b | -12.3% | PE409.8x |