KPIT Technologies (NSE:KPITTECH) Has Announced That It Will Be Increasing Its Dividend To ₹4.60
Aug 01
Indian (NIFTY) Software Industry Analysis
UpdatedAug 05, 2024
DataAggregated Company Financials
Companies71
- 7D-3.2%
- 3M15.0%
- 1Y57.4%
- YTD25.8%
Over the last 7 days, the Software industry has dropped 3.2%, driven by a pullback from Oracle Financial Services Software of 8.3%. In the past year, the industry has gained 57%. As for the next few years, earnings are expected to grow by 17% 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 |
|---|---|---|---|---|---|---|
| Mon, 05 Aug 2024 | ₹3.2t | ₹451.5b | ₹66.6b | 38.2x | 48.5x | 7.2x |
| Wed, 03 Jul 2024 | ₹3.2t | ₹438.2b | ₹64.4b | 40.2x | 49.6x | 7.3x |
| Fri, 31 May 2024 | ₹2.7t | ₹440.9b | ₹64.8b | 37.9x | 41.4x | 6.1x |
| Sun, 28 Apr 2024 | ₹2.8t | ₹436.2b | ₹63.3b | 39.9x | 43.5x | 6.3x |
| Tue, 26 Mar 2024 | ₹2.8t | ₹432.0b | ₹62.0b | 37x | 45x | 6.5x |
| Thu, 22 Feb 2024 | ₹2.8t | ₹432.0b | ₹62.0b | 38x | 45.7x | 6.6x |
| Sat, 20 Jan 2024 | ₹2.8t | ₹416.5b | ₹56.8b | 40.9x | 50x | 6.8x |
| Mon, 18 Dec 2023 | ₹2.6t | ₹411.1b | ₹53.4b | 39.4x | 48x | 6.2x |
| Wed, 15 Nov 2023 | ₹2.3t | ₹410.9b | ₹53.3b | 38.4x | 43.1x | 5.6x |
| Fri, 13 Oct 2023 | ₹2.4t | ₹458.5b | ₹57.9b | 34.7x | 41x | 5.2x |
| Sun, 10 Sep 2023 | ₹2.3t | ₹453.0b | ₹57.6b | 35.3x | 40.5x | 5.2x |
| Tue, 08 Aug 2023 | ₹2.2t | ₹451.2b | ₹57.1b | 32.7x | 38.4x | 4.9x |
| Thu, 06 Jul 2023 | ₹2.1t | ₹431.3b | ₹54.2b | 31.3x | 38x | 4.8x |
| Sat, 03 Jun 2023 | ₹2.0t | ₹429.6b | ₹53.7b | 30.8x | 37x | 4.6x |
| Mon, 01 May 2023 | ₹1.7t | ₹420.3b | ₹53.3b | 29.3x | 32.5x | 4.1x |
| Wed, 29 Mar 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 21.7x | 29.5x | 3.8x |
| Fri, 24 Feb 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 25.1x | 31.1x | 4x |
| Sun, 22 Jan 2023 | ₹1.6t | ₹342.4b | ₹52.9b | 29.7x | 30.7x | 4.7x |
| Tue, 20 Dec 2022 | ₹1.6t | ₹382.1b | ₹52.3b | 33.6x | 29.8x | 4.1x |
| Thu, 17 Nov 2022 | ₹1.6t | ₹382.2b | ₹52.4b | 35.5x | 30.2x | 4.1x |
| Sat, 15 Oct 2022 | ₹1.7t | ₹365.9b | ₹53.2b | 30.5x | 31.9x | 4.6x |
| Mon, 12 Sep 2022 | ₹1.8t | ₹365.8b | ₹53.2b | 33.6x | 33.5x | 4.9x |
| Wed, 10 Aug 2022 | ₹1.8t | ₹364.8b | ₹53.4b | 30.9x | 33.9x | 5x |
| Fri, 08 Jul 2022 | ₹1.8t | ₹392.5b | ₹57.4b | 28.2x | 30.7x | 4.5x |
| Sun, 05 Jun 2022 | ₹1.9t | ₹393.8b | ₹57.7b | 30.3x | 33.3x | 4.9x |
| Tue, 03 May 2022 | ₹2.0t | ₹381.5b | ₹57.9b | 31.7x | 33.8x | 5.1x |
| Thu, 31 Mar 2022 | ₹2.1t | ₹375.4b | ₹56.3b | 33.5x | 37.3x | 5.6x |
| Sat, 26 Feb 2022 | ₹1.8t | ₹375.4b | ₹56.3b | 25x | 31.2x | 4.7x |
| Mon, 24 Jan 2022 | ₹2.2t | ₹365.7b | ₹56.6b | 32.5x | 38.3x | 5.9x |
| Wed, 22 Dec 2021 | ₹2.0t | ₹359.4b | ₹54.9b | 28.2x | 35.7x | 5.5x |
| Fri, 19 Nov 2021 | ₹1.9t | ₹354.6b | ₹54.7b | 28.7x | 34.7x | 5.4x |
| Sun, 17 Oct 2021 | ₹1.8t | ₹342.9b | ₹75.7b | 31.5x | 24.4x | 5.4x |
| Tue, 14 Sep 2021 | ₹1.7t | ₹338.7b | ₹75.5b | 30.5x | 22.7x | 5.1x |
| Thu, 12 Aug 2021 | ₹1.6t | ₹338.9b | ₹75.4b | 30x | 21.8x | 4.9x |
Price to Earnings Ratio
21.8x
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 48.5x which is higher than its 3-year average PE of 36.2x.
- The 3-year average PS ratio of 5.2x is lower than the industry's current PS ratio of 7.2x.
Past Earnings Growth
- The earnings for companies in the Software industry have declined 4.0% per year over the last three years.
- Meanwhile revenues for these companies have grown 10% 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 | -0.019% | |
| Tech | -2.65% | |
| Software | -3.19% | |
| Systems Software | -2.89% | |
| Application Software | -3.40% | |
Industry PE
- Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 54.3x.
- Analysts are expecting annual earnings growth of 17.6%, which is lower than the prior year's growth of 30.5% 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 27.8x.
Forecasted Growth
- Analysts are most optimistic on the Systems Software industry, expecting annual earnings growth of 18% over the next 5 years.
- However this is lower than its past earnings growth rate of 30% 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 | |
|---|---|---|---|---|---|
| KPITTECH KPIT Technologies | ₹1.82k | 2.0% +₹9.5b | 59.1% | PE74.4x | |
| TANLA Tanla Platforms | ₹980.40 | 2.0% +₹2.6b | -15.6% | PE23.8x | |
| 526881 63 moons technologies | ₹404.45 | 15.8% +₹2.5b | 75.2% | PE8.4x | |
| AURUM Aurum PropTech | ₹186.99 | 11.0% +₹2.3b | 32.5% | PS10x | |
| ZAGGLE Zaggle Prepaid Ocean Services | ₹349.40 | 4.2% +₹1.8b | n/a | PE73x |