Indian (NIFTY) Software Industry Analysis
UpdatedDec 04, 2022
DataAggregated Company Financials
Companies70
- 7D4.5%
- 3M-5.0%
- 1Y-11.4%
- YTD-18.9%
Tata Elxsi is up 3.7%, leading the way for the Software industry, which has gained 4.5%. However, the industry is down 11% over the past year. Looking forward, earnings are forecast to grow by 18% annually.
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 |
|---|---|---|---|---|---|---|
| Sun, 04 Dec 2022 | ₹1.7t | ₹382.1b | ₹52.3b | 35.4x | 31.6x | 4.3x |
| Tue, 01 Nov 2022 | ₹1.6t | ₹380.5b | ₹52.4b | 36.2x | 30.1x | 4.1x |
| Thu, 29 Sep 2022 | ₹1.7t | ₹366.1b | ₹53.2b | 33.4x | 31.6x | 4.6x |
| Sat, 27 Aug 2022 | ₹1.8t | ₹365.8b | ₹53.2b | 28.8x | 33.6x | 4.9x |
| Mon, 25 Jul 2022 | ₹1.8t | ₹395.9b | ₹57.5b | 29.8x | 31.4x | 4.6x |
| Wed, 22 Jun 2022 | ₹1.7t | ₹394.3b | ₹57.8b | 26.4x | 29.3x | 4.3x |
| Fri, 20 May 2022 | ₹1.8t | ₹369.4b | ₹55.7b | 27.5x | 32.4x | 4.9x |
| Sun, 17 Apr 2022 | ₹2.1t | ₹375.4b | ₹56.3b | 36.1x | 37.2x | 5.6x |
| Tue, 15 Mar 2022 | ₹2.0t | ₹375.4b | ₹56.3b | 29.5x | 34.7x | 5.2x |
| Thu, 10 Feb 2022 | ₹2.1t | ₹375.1b | ₹56.7b | 32.2x | 36.7x | 5.6x |
| Sat, 08 Jan 2022 | ₹2.2t | ₹359.5b | ₹55.0b | 30x | 39.1x | 6x |
| Mon, 06 Dec 2021 | ₹1.8t | ₹355.3b | ₹54.6b | 26.3x | 33.8x | 5.2x |
| Wed, 03 Nov 2021 | ₹1.8t | ₹353.0b | ₹54.8b | 70.2x | 32.3x | 5x |
| Fri, 01 Oct 2021 | ₹1.7t | ₹341.3b | ₹75.2b | 29.6x | 23x | 5.1x |
| Sun, 29 Aug 2021 | ₹1.7t | ₹338.9b | ₹75.4b | 29.8x | 22.2x | 4.9x |
| Mon, 05 Jul 2021 | ₹1.5t | ₹338.7b | ₹75.4b | 26.9x | 19.6x | 4.4x |
| Thu, 08 Apr 2021 | ₹1.1t | ₹330.2b | ₹72.0b | 23x | 16x | 3.5x |
| Sun, 10 Jan 2021 | ₹954.1b | ₹343.0b | ₹62.0b | 16.3x | 15.4x | 2.8x |
| Sat, 03 Oct 2020 | ₹770.7b | ₹338.9b | ₹56.0b | 15.4x | 13.8x | 2.3x |
| Tue, 07 Jul 2020 | ₹511.0b | ₹328.1b | ₹29.3b | 10x | 17.4x | 1.6x |
| Fri, 10 Apr 2020 | ₹355.1b | ₹317.2b | ₹20.4b | 7.5x | 17.4x | 1.1x |
| Thu, 02 Jan 2020 | ₹535.6b | ₹326.3b | ₹26.6b | 14.2x | 20.1x | 1.6x |
Price to Earnings Ratio
20.1x
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 31.6x which is higher than its 3-year average PE of 24.3x.
- The 3-year average PS ratio of 3.6x is lower than the industry's current PS ratio of 4.3x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 25% per year over the last three years.
- Revenues for these companies have grown 5.4% 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 | 1.75% | |
| Tech | 1.78% | |
| Software | 4.47% | |
| Application Software | 4.95% | |
| Systems Software | 4.04% | |
Industry PE
- Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 30.8x.
- Analysts are expecting annual earnings growth of 15.0%, which is higher than its past year's earnings growth of 10.7% per year.
- Investors are most pessimistic about the Application Software industry, which is trading close to its 3-year average of 22.5x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings growth rate of 17% per year.
- In contrast, the Systems Software industry is expected to see its earnings grow by 15% 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 | ₹7.03k | 3.7% +₹15.7b | 19.2% | PE65.3x | |
| 532466 Oracle Financial Services Software | ₹3.22k | 5.6% +₹14.7b | -22.6% | PE15.4x | |
| BSOFT Birlasoft | ₹331.55 | 12.8% +₹10.4b | -31.3% | PE18.7x | |
| 532790 Tanla Platforms | ₹793.35 | 7.7% +₹7.7b | -47.9% | PE21.2x | |
| 532175 Cyient | ₹845.15 | 6.2% +₹5.4b | -15.9% | PE19.4x |