Here's Why We Think KPIT Technologies (NSE:KPITTECH) Might Deserve Your Attention Today
Jul 01
Indian (NIFTY) Software Industry Analysis
UpdatedJul 07, 2024
DataAggregated Company Financials
Companies71
- 7D3.9%
- 3M10.6%
- 1Y67.3%
- YTD26.7%
The Software industry is up 3.9% in the last week, with Oracle Financial Services Software up 5.5%. This takes the industry's 12 month performance to a gain of 67%. 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 |
|---|---|---|---|---|---|---|
| Sun, 07 Jul 2024 | ₹3.2t | ₹438.3b | ₹64.4b | 41.3x | 50.4x | 7.4x |
| Tue, 04 Jun 2024 | ₹2.7t | ₹440.9b | ₹64.8b | 38.1x | 41.5x | 6.1x |
| Thu, 02 May 2024 | ₹2.8t | ₹442.1b | ₹64.8b | 41.1x | 43x | 6.3x |
| Sat, 30 Mar 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 38.1x | 46.1x | 6.6x |
| Mon, 26 Feb 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 39.3x | 46.6x | 6.7x |
| Wed, 24 Jan 2024 | ₹2.8t | ₹420.7b | ₹57.7b | 39.4x | 47.9x | 6.6x |
| Fri, 22 Dec 2023 | ₹2.5t | ₹411.1b | ₹53.4b | 41.6x | 47x | 6.1x |
| Sun, 19 Nov 2023 | ₹2.4t | ₹411.2b | ₹53.4b | 37.1x | 44.9x | 5.8x |
| Tue, 17 Oct 2023 | ₹2.4t | ₹458.5b | ₹57.9b | 34.3x | 40.8x | 5.2x |
| Thu, 14 Sep 2023 | ₹2.3t | ₹453.2b | ₹57.7b | 34x | 39.3x | 5x |
| Sat, 12 Aug 2023 | ₹2.2t | ₹452.7b | ₹57.6b | 33.8x | 38x | 4.8x |
| Mon, 10 Jul 2023 | ₹2.1t | ₹431.3b | ₹54.2b | 30.9x | 38x | 4.8x |
| Wed, 07 Jun 2023 | ₹2.0t | ₹428.7b | ₹53.7b | 28.8x | 36.9x | 4.6x |
| Fri, 05 May 2023 | ₹1.8t | ₹421.3b | ₹53.4b | 29.1x | 32.9x | 4.2x |
| Sun, 02 Apr 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 23.4x | 30.1x | 3.9x |
| Tue, 28 Feb 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 26.1x | 30.7x | 4x |
| Thu, 26 Jan 2023 | ₹1.7t | ₹402.0b | ₹52.7b | 29.5x | 31.5x | 4.1x |
| Sat, 24 Dec 2022 | ₹1.5t | ₹382.8b | ₹52.4b | 29.9x | 27.9x | 3.8x |
| Mon, 21 Nov 2022 | ₹1.6t | ₹382.4b | ₹52.5b | 35.4x | 30.1x | 4.1x |
| Wed, 19 Oct 2022 | ₹1.6t | ₹370.5b | ₹53.2b | 36.9x | 30.3x | 4.4x |
| Fri, 16 Sep 2022 | ₹1.8t | ₹365.8b | ₹53.2b | 34.5x | 33.3x | 4.8x |
| Sun, 14 Aug 2022 | ₹1.9t | ₹363.6b | ₹53.5b | 27.7x | 34.8x | 5.1x |
| Tue, 12 Jul 2022 | ₹1.8t | ₹392.5b | ₹57.4b | 28.4x | 31x | 4.5x |
| Thu, 09 Jun 2022 | ₹1.9t | ₹393.8b | ₹57.6b | 33.2x | 33.2x | 4.8x |
| Sat, 07 May 2022 | ₹1.9t | ₹383.4b | ₹58.1b | 27.3x | 32.6x | 4.9x |
| Mon, 04 Apr 2022 | ₹2.1t | ₹375.4b | ₹56.3b | 34.6x | 37.6x | 5.6x |
| Wed, 02 Mar 2022 | ₹1.8t | ₹375.4b | ₹56.3b | 26.9x | 32.8x | 4.9x |
| Fri, 28 Jan 2022 | ₹2.0t | ₹367.2b | ₹56.1b | 31.4x | 36x | 5.5x |
| Sun, 26 Dec 2021 | ₹2.0t | ₹359.4b | ₹54.9b | 27.6x | 36.6x | 5.6x |
| Tue, 23 Nov 2021 | ₹1.8t | ₹354.5b | ₹54.7b | 27.4x | 33.7x | 5.2x |
| Thu, 21 Oct 2021 | ₹1.8t | ₹344.0b | ₹75.8b | 30.2x | 24.3x | 5.3x |
| Sat, 18 Sep 2021 | ₹1.8t | ₹338.3b | ₹75.5b | 30x | 23.3x | 5.2x |
| Mon, 16 Aug 2021 | ₹1.7t | ₹338.9b | ₹75.4b | 30.7x | 21.9x | 4.9x |
Price to Earnings Ratio
21.7x
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 50.4x which is higher than its 3-year average PE of 35.8x.
- The 3-year average PS ratio of 5.1x is lower than the industry's current PS ratio of 7.4x.
Past Earnings Growth
- The earnings for companies in the Software industry have declined 5.1% per year over the last three years.
- Meanwhile revenues for these companies have grown 9.0% 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 | 2.42% | |
| Tech | 3.72% | |
| Software | 3.93% | |
| Application Software | 4.99% | |
| Systems Software | 2.49% | |
Industry PE
- Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 53.6x.
- Analysts are expecting annual earnings growth of 16.3%, which is lower than the prior year's growth of 24.8% 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 27.3x.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 16% over the next 5 years.
- However this is lower than its past earnings growth rate of 25% per year.
- In contrast, the Application 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 | |
|---|---|---|---|---|---|
| 532466 Oracle Financial Services Software | ₹10.42k | 5.5% +₹47.3b | 173.7% | PE40.7x | |
| KPITTECH KPIT Technologies | ₹1.69k | 3.6% +₹16.1b | 56.9% | PE77.3x | |
| AURIONPRO Aurionpro Solutions | ₹1.61k | 18.0% +₹13.1b | 229.5% | PE60.8x | |
| MAPMYINDIA C. E. Info Systems | ₹2.46k | 6.9% +₹8.6b | 102.2% | PE99.3x | |
| BSOFT Birlasoft | ₹714.70 | 3.5% +₹6.7b | 101.5% | PE31.6x |
