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Indian (NIFTY) Software Industry Analysis

UpdatedMar 29, 2024
DataAggregated Company Financials
Companies67
  • 7D2.7%
  • 3M12.7%
  • 1Y92.2%
  • YTD12.4%

KPIT Technologies is up 9.4%, leading the way for the Software industry, which has gained 5.2%. During this same period, the RateGain Travel Technologies underperformed, falling 5.5%. In the last 12 months, the industry was up 93%. 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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 29 Mar 2024₹2.9t₹432.0b₹62.0b38.1x46.1x6.6x
Sun, 25 Feb 2024₹2.9t₹432.0b₹62.0b39.3x46.6x6.7x
Tue, 23 Jan 2024₹2.8t₹420.7b₹57.7b41.2x49x6.7x
Thu, 21 Dec 2023₹2.5t₹411.1b₹53.4b41.1x46.1x6x
Sat, 18 Nov 2023₹2.4t₹411.0b₹53.4b38x44.9x5.8x
Mon, 16 Oct 2023₹2.4t₹458.5b₹57.9b34.3x40.8x5.2x
Wed, 13 Sep 2023₹2.3t₹453.0b₹57.6b34.4x39.5x5x
Fri, 11 Aug 2023₹2.2t₹453.0b₹57.6b34x38x4.8x
Sun, 09 Jul 2023₹2.1t₹431.3b₹54.2b30.9x38x4.8x
Tue, 06 Jun 2023₹2.0t₹429.8b₹53.7b29.9x37x4.6x
Thu, 04 May 2023₹1.7t₹420.5b₹53.2b29x32.9x4.2x
Sat, 01 Apr 2023₹1.6t₹406.7b₹52.9b23.4x30.1x3.9x
Mon, 27 Feb 2023₹1.6t₹406.7b₹52.9b26.1x31.1x4x
Wed, 25 Jan 2023₹1.7t₹401.7b₹52.9b29.6x31.4x4.1x
Fri, 23 Dec 2022₹1.5t₹382.8b₹52.4b31.2x29.1x4x
Sun, 20 Nov 2022₹1.6t₹382.3b₹52.3b35.4x30.2x4.1x
Tue, 18 Oct 2022₹1.7t₹318.7b₹52.7b31.7x32.2x5.3x
Thu, 15 Sep 2022₹1.8t₹365.8b₹53.2b34x33.5x4.9x
Sat, 13 Aug 2022₹1.9t₹365.4b₹53.5b27.7x34.8x5.1x
Mon, 11 Jul 2022₹1.8t₹392.5b₹57.4b28.9x30.8x4.5x
Wed, 08 Jun 2022₹1.9t₹393.8b₹57.6b33.2x33.2x4.8x
Fri, 06 May 2022₹1.9t₹382.1b₹57.9b28.8x33.6x5.1x
Sun, 03 Apr 2022₹2.1t₹375.4b₹56.3b34.6x37.6x5.6x
Tue, 01 Mar 2022₹1.8t₹375.4b₹56.3b26.9x32.8x4.9x
Thu, 27 Jan 2022₹2.1t₹367.8b₹56.2b31x36.9x5.6x
Sat, 25 Dec 2021₹2.0t₹359.4b₹54.9b27.6x36.6x5.6x
Mon, 22 Nov 2021₹1.9t₹354.5b₹54.7b28.7x34.7x5.4x
Wed, 20 Oct 2021₹1.9t₹344.0b₹75.8b31.3x24.9x5.5x
Fri, 17 Sep 2021₹1.7t₹338.3b₹75.5b30.2x23.1x5.2x
Sun, 15 Aug 2021₹1.6t₹338.9b₹75.4b30.5x21.8x4.9x
Thu, 10 Jun 2021₹1.4t₹330.2b₹72.0b27.3x19x4.1x
Price to Earnings Ratio

16x


Total Market Cap: ₹1.1tTotal Earnings: ₹72.0bTotal Revenue: ₹330.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Software Industry Price to Earnings3Y Average 32.9x202220232024
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 46.2x which is higher than its 3-year average PE of 32.9x.
  • The 3-year average PS ratio of 4.9x is lower than the industry's current PS ratio of 6.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have declined 4.8% per year over the last three years.
  • Meanwhile revenues for these companies have grown 9.4% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the Indian Tech industry?

IN Market1.85%
Tech-2.29%
Software2.69%
Systems Software3.79%
Application Software1.84%
Industry PE
  • Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 49.3x.
    • Analysts are expecting annual earnings growth of 19.6%, which is lower than the prior year's growth of 50.5% 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 25.2x.
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 51% 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?

CompanyLast Price7D1YValuation
KPITTECH KPIT Technologies₹1.49k9.4%
+₹34.7b
65.9%PE74.4x
532466 Oracle Financial Services Software₹8.77k4.2%
+₹30.6b
171.2%PE35.5x
NEWGEN Newgen Software Technologies₹795.207.7%
+₹7.9b
258.7%PE49.3x
AURIONPRO Aurionpro Solutions₹2.20k16.2%
+₹7.6b
634.9%PE42.6x
500408 Tata Elxsi₹7.78k1.1%
+₹5.3b
30.7%PE60.8x
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Latest News

KPITTECH

₹1,486.40

KPIT Technologies

7D

9.4%

1Y

65.9%

ZAGGLE

₹287.80

Zaggle Prepaid Ocean Services

7D

-3.7%

1Y

n/a

AURIONPRO

₹2,196.50

Aurionpro Solutions

7D

16.2%

1Y

634.9%

BSOFT

₹742.00

Birlasoft

7D

0.4%

1Y

190.4%

532466

₹8,766.05

Oracle Financial Services Software

7D

4.2%

1Y

171.2%

526881

₹382.15

63 moons technologies

7D

-6.1%

1Y

118.3%

QUICKHEAL

₹469.50

Quick Heal Technologies

7D

-2.9%

1Y

262.7%

532408

₹89.34

Megasoft

7D

19.0%

1Y

326.9%

531209

₹1,182.45

Nucleus Software Exports

7D

-3.2%

1Y

90.7%

532407

₹88.56

MosChip Technologies

7D

-5.5%

1Y

38.8%

500408

₹7,779.60

Tata Elxsi

7D

1.1%

1Y

30.7%