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Indian (NIFTY) Software Industry Analysis

UpdatedApr 22, 2024
DataAggregated Company Financials
Companies68
  • 7D-4.0%
  • 3M-3.9%
  • 1Y77.4%
  • YTD6.8%

Over the last 7 days, the Software industry has dropped 4.0%, driven by a pullback from Oracle Financial Services Software of 6.4%. Meanwhile, MosChip Technologies actually outperformed within the industry, gaining 48% in the last week. Over the past 12 months, the industry was up 77%. As for the next few years, earnings are expected to grow by 21% per annum.

Industry Valuation and Performance

Has the Indian Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 23 Apr 2024₹2.7t₹432.2b₹62.1b40.4x43.9x6.3x
Thu, 21 Mar 2024₹2.7t₹432.0b₹62.0b35.7x43.9x6.3x
Sat, 17 Feb 2024₹2.9t₹432.0b₹62.0b39.4x46.8x6.7x
Mon, 15 Jan 2024₹2.7t₹411.1b₹53.6b38.5x49.5x6.5x
Wed, 13 Dec 2023₹2.5t₹411.1b₹53.4b39.9x45.9x6x
Fri, 10 Nov 2023₹2.3t₹408.9b₹52.0b37.6x43.8x5.6x
Sun, 08 Oct 2023₹2.3t₹458.4b₹57.9b33.6x40.2x5.1x
Tue, 05 Sep 2023₹2.3t₹453.0b₹57.6b36x39.9x5.1x
Thu, 03 Aug 2023₹2.1t₹450.2b₹56.6b32.3x37.7x4.7x
Sat, 01 Jul 2023₹2.1t₹432.3b₹54.3b31.1x38.2x4.8x
Mon, 29 May 2023₹1.9t₹429.2b₹53.1b29.3x35.6x4.4x
Wed, 26 Apr 2023₹1.7t₹410.0b₹52.8b27.4x31.4x4x
Fri, 24 Mar 2023₹1.6t₹406.7b₹52.9b24.4x29.9x3.9x
Sun, 19 Feb 2023₹1.7t₹406.7b₹52.9b26x31.6x4.1x
Tue, 17 Jan 2023₹1.6t₹394.8b₹52.9b29.8x30.7x4.1x
Thu, 15 Dec 2022₹1.6t₹382.1b₹52.3b33.6x30.3x4.1x
Sat, 12 Nov 2022₹1.6t₹376.5b₹52.5b35.5x30.3x4.2x
Mon, 10 Oct 2022₹1.7t₹365.9b₹53.2b31.3x32.4x4.7x
Wed, 07 Sep 2022₹1.8t₹365.8b₹53.2b32.8x32.9x4.8x
Fri, 05 Aug 2022₹1.8t₹364.4b₹53.5b30.1x33x4.8x
Sun, 03 Jul 2022₹1.7t₹392.5b₹57.4b26.1x30.4x4.4x
Tue, 31 May 2022₹1.8t₹392.8b₹57.6b30.5x32.1x4.7x
Thu, 28 Apr 2022₹2.0t₹377.9b₹57.3b32.9x35.1x5.3x
Sat, 26 Mar 2022₹2.1t₹375.4b₹56.3b34.1x36.4x5.5x
Mon, 21 Feb 2022₹2.0t₹375.4b₹56.3b27.6x34.8x5.2x
Wed, 19 Jan 2022₹2.2t₹359.5b₹55.0b31.2x40.2x6.2x
Fri, 17 Dec 2021₹1.9t₹355.3b₹54.6b27.8x35.6x5.5x
Sun, 14 Nov 2021₹1.9t₹354.6b₹54.9b28.2x34.3x5.3x
Tue, 12 Oct 2021₹1.8t₹341.8b₹75.4b31.3x24.4x5.4x
Thu, 09 Sep 2021₹1.7t₹338.7b₹75.5b29.8x22.4x5x
Sat, 07 Aug 2021₹1.6t₹338.7b₹75.4b29.1x21.7x4.8x
Fri, 30 Apr 2021₹1.3t₹330.2b₹72.0b24.2x17.6x3.8x
Price to Earnings Ratio

17.6x


Total Market Cap: ₹1.3tTotal Earnings: ₹72.0bTotal Revenue: ₹330.2bTotal Market Cap vs Earnings and Revenue0%0%0%
Indian Software Industry Price to Earnings3Y Average 33.7x202220232024
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 43.9x which is higher than its 3-year average PE of 33.7x.
  • The 3-year average PS ratio of 5.0x is lower than the industry's current PS ratio of 6.3x.
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 Market-1.57%
Tech-4.15%
Software-3.99%
Systems Software-3.98%
Application Software-4.00%
Industry PE
  • Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 50.6x.
    • Analysts are expecting annual earnings growth of 19.8%, which is lower than the prior year's growth of 55.6% 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 25.8x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 22% 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 20% 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
532407 MosChip Technologies₹145.8447.6%
+₹8.9b
137.4%PE260.9x
AURIONPRO Aurionpro Solutions₹2.56k11.4%
+₹6.9b
645.8%PE53.3x
RATEGAIN RateGain Travel Technologies₹704.706.8%
+₹5.3b
101.9%PE64.3x
MAPMYINDIA C. E. Info Systems₹1.90k4.5%
+₹4.4b
90.9%PE82.9x
531209 Nucleus Software Exports₹1.35k5.0%
+₹1.7b
129.9%PE17.4x
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BSOFT

₹659.70

Birlasoft

7D

-6.7%

1Y

149.0%

KPITTECH

₹1,378.65

KPIT Technologies

7D

-3.5%

1Y

62.3%

AURIONPRO

₹2,556.65

Aurionpro Solutions

7D

11.4%

1Y

645.8%

532407

₹145.84

MosChip Technologies

7D

47.6%

1Y

137.4%

541402

₹545.15

Affordable Robotic & Automation

7D

19.4%

1Y

64.9%

532466

₹7,538.90

Oracle Financial Services Software

7D

-6.4%

1Y

120.7%

TANLA

₹921.95

Tanla Platforms

7D

-1.6%

1Y

44.9%

500408

₹7,436.15

Tata Elxsi

7D

-1.2%

1Y

18.9%

MAPMYINDIA

₹1,902.50

C. E. Info Systems

7D

4.5%

1Y

90.9%

TRUST

₹250.60

Trust Fintech

7D

24.5%

1Y

n/a

531209

₹1,345.00

Nucleus Software Exports

7D

5.0%

1Y

129.9%

INTELLECT

₹998.55

Intellect Design Arena

7D

-2.3%

1Y

128.9%

542770

₹120.47

Alphalogic Techsys

7D

19.8%

1Y

315.1%