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Indian (NIFTY) Software Industry Analysis
UpdatedDec 21, 2024
DataAggregated Company Financials
Companies71
- 7D-1.2%
- 3M-2.5%
- 1Y27.5%
- YTD28.8%
In the last week, the Software industry is up 2.2%, with Newgen Software Technologies up 13%. During this same period, the Tata Elxsi underperformed, falling 5.9%. In the last 12 months, the industry was up 34%. As for the next few years, earnings are expected to grow by 16% 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 |
|---|---|---|---|---|---|---|
| Sat, 21 Dec 2024 | ₹3.4t | ₹465.5b | ₹67.4b | 39.9x | 50.4x | 7.3x |
| Mon, 18 Nov 2024 | ₹3.1t | ₹464.2b | ₹71.9b | 33.3x | 43x | 6.7x |
| Wed, 16 Oct 2024 | ₹3.4t | ₹454.1b | ₹66.9b | 37.4x | 51x | 7.5x |
| Fri, 13 Sep 2024 | ₹3.4t | ₹452.8b | ₹66.6b | 37.9x | 51.7x | 7.6x |
| Sun, 11 Aug 2024 | ₹3.2t | ₹451.8b | ₹66.9b | 37.7x | 47.7x | 7.1x |
| Tue, 09 Jul 2024 | ₹3.2t | ₹438.3b | ₹64.4b | 41.5x | 50x | 7.4x |
| Thu, 06 Jun 2024 | ₹2.7t | ₹437.4b | ₹64.2b | 32.7x | 41.8x | 6.1x |
| Sat, 04 May 2024 | ₹2.8t | ₹441.4b | ₹64.8b | 40x | 43.5x | 6.4x |
| Mon, 01 Apr 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 38.1x | 46.2x | 6.6x |
| Wed, 28 Feb 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 41x | 46.6x | 6.7x |
| Fri, 26 Jan 2024 | ₹2.7t | ₹424.7b | ₹60.0b | 40.6x | 45.4x | 6.4x |
| Sun, 24 Dec 2023 | ₹2.5t | ₹411.1b | ₹53.4b | 42x | 47.6x | 6.2x |
| Tue, 21 Nov 2023 | ₹2.4t | ₹411.1b | ₹53.4b | 37.4x | 45.3x | 5.9x |
| Thu, 19 Oct 2023 | ₹2.4t | ₹460.7b | ₹58.4b | 35.5x | 40.9x | 5.2x |
| Sat, 16 Sep 2023 | ₹2.3t | ₹453.2b | ₹57.7b | 34.5x | 39.9x | 5.1x |
| Mon, 14 Aug 2023 | ₹2.2t | ₹453.0b | ₹57.7b | 32.4x | 38x | 4.8x |
| Wed, 12 Jul 2023 | ₹2.0t | ₹431.3b | ₹54.2b | 30.8x | 37.7x | 4.7x |
| Fri, 09 Jun 2023 | ₹2.0t | ₹428.7b | ₹53.7b | 30.2x | 37.1x | 4.6x |
| Sun, 07 May 2023 | ₹1.7t | ₹421.3b | ₹53.4b | 29.1x | 32.7x | 4.1x |
| Tue, 04 Apr 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 24.9x | 29.9x | 3.9x |
| Thu, 02 Mar 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 26.1x | 30.7x | 4x |
| Sat, 28 Jan 2023 | ₹1.6t | ₹406.7b | ₹53.5b | 27.7x | 30.6x | 4x |
| Mon, 26 Dec 2022 | ₹1.5t | ₹382.8b | ₹52.4b | 29.9x | 27.8x | 3.8x |
| Wed, 23 Nov 2022 | ₹1.6t | ₹382.4b | ₹52.4b | 35.5x | 29.9x | 4.1x |
| Fri, 21 Oct 2022 | ₹1.6t | ₹372.7b | ₹53.3b | 36.1x | 30.4x | 4.3x |
| Sun, 18 Sep 2022 | ₹1.7t | ₹365.8b | ₹53.2b | 34x | 32.5x | 4.7x |
| Tue, 16 Aug 2022 | ₹1.9t | ₹359.8b | ₹53.2b | 33.8x | 35x | 5.2x |
| Thu, 14 Jul 2022 | ₹1.7t | ₹392.1b | ₹57.3b | 31.4x | 30.5x | 4.5x |
| Sat, 11 Jun 2022 | ₹1.9t | ₹393.8b | ₹57.6b | 32.2x | 32.5x | 4.8x |
| Mon, 09 May 2022 | ₹1.9t | ₹383.3b | ₹58.2b | 27.1x | 32.6x | 4.9x |
| Wed, 06 Apr 2022 | ₹2.2t | ₹375.4b | ₹56.3b | 34x | 38.5x | 5.8x |
| Fri, 04 Mar 2022 | ₹1.9t | ₹375.4b | ₹56.3b | 28.4x | 33.4x | 5x |
| Sun, 30 Jan 2022 | ₹2.1t | ₹366.5b | ₹55.4b | 32.6x | 37x | 5.6x |
| Tue, 28 Dec 2021 | ₹2.0t | ₹359.4b | ₹54.9b | 27.6x | 36.5x | 5.6x |
Price to Earnings Ratio
36.5x
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 52.0x which is higher than its 3-year average PE of 38.9x.
- The 3-year average PS ratio of 5.5x is lower than the industry's current PS ratio of 7.5x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 7.1% per year over the last three years.
- Revenues for these companies have grown 9.0% 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 | -4.25% | |
| Tech | -4.62% | |
| Software | -1.24% | |
| Application Software | -0.40% | |
| Systems Software | -2.54% | |
Industry PE
- Investors are most optimistic about the Systems Software industry, which is trading close to its 3-year average PE ratio of 57.5x.
- Analysts are expecting annual earnings growth of 16.5%, 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 30.2x.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 17% over the next 5 years.
- However this is lower than its past earnings growth rate of 39% per year.
- In contrast, the Application 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 | |
|---|---|---|---|---|---|
| NEWGEN Newgen Software Technologies | ₹1.57k | 13.2% +₹25.7b | 118.8% | PE75.6x | |
| BLACKBUCK Zinka Logistics Solutions | ₹501.65 | 18.5% +₹13.8b | n/a | PS24.3x | |
| 526881 63 moons technologies | ₹980.60 | 14.6% +₹5.8b | 99.0% | PE61.7x | |
| AURIONPRO Aurionpro Solutions | ₹1.79k | 4.1% +₹3.8b | 63.6% | PE58.6x | |
| TAC TAC Infosec | ₹1.18k | 17.0% +₹1.8b | n/a | PE113.2x |
