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Indian (NIFTY) Software Industry Analysis
UpdatedOct 19, 2024
DataAggregated Company Financials
Companies71
- 7D-1.4%
- 3M1.3%
- 1Y50.3%
- YTD29.8%
Over the last 7 days, the Software industry has dropped 1.4%, driven by a pullback from Tata Elxsi of 4.5%. In contrast, Zaggle Prepaid Ocean Services has gained 6.4%. Over the past 12 months, the industry was up 50%. 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 |
|---|---|---|---|---|---|---|
| Sat, 19 Oct 2024 | ₹3.4t | ₹454.7b | ₹66.9b | 36.6x | 50.3x | 7.4x |
| Mon, 16 Sep 2024 | ₹3.5t | ₹452.8b | ₹66.6b | 39.5x | 52.9x | 7.8x |
| Wed, 14 Aug 2024 | ₹3.2t | ₹452.9b | ₹66.8b | 38.5x | 47.7x | 7x |
| Fri, 12 Jul 2024 | ₹3.2t | ₹439.3b | ₹64.4b | 42.9x | 49.9x | 7.3x |
| Sun, 09 Jun 2024 | ₹2.8t | ₹437.7b | ₹64.2b | 36.5x | 44.3x | 6.5x |
| Tue, 07 May 2024 | ₹2.8t | ₹441.4b | ₹64.7b | 40.8x | 43.2x | 6.3x |
| Thu, 04 Apr 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 40.3x | 47.5x | 6.8x |
| Sat, 02 Mar 2024 | ₹2.9t | ₹432.0b | ₹62.0b | 39.3x | 46.5x | 6.7x |
| Mon, 29 Jan 2024 | ₹2.7t | ₹425.3b | ₹60.3b | 36.7x | 45.2x | 6.4x |
| Wed, 27 Dec 2023 | ₹2.5t | ₹411.1b | ₹53.3b | 42.4x | 47.7x | 6.2x |
| Fri, 24 Nov 2023 | ₹2.4t | ₹411.1b | ₹53.4b | 38.2x | 44.5x | 5.8x |
| Sun, 22 Oct 2023 | ₹2.4t | ₹463.5b | ₹58.7b | 34.4x | 40.4x | 5.1x |
| Tue, 19 Sep 2023 | ₹2.3t | ₹453.2b | ₹57.7b | 33.8x | 39.5x | 5x |
| Thu, 17 Aug 2023 | ₹2.2t | ₹453.1b | ₹57.7b | 34.5x | 38.6x | 4.9x |
| Sat, 15 Jul 2023 | ₹2.1t | ₹431.3b | ₹54.2b | 32.1x | 39.3x | 4.9x |
| Mon, 12 Jun 2023 | ₹2.0t | ₹428.8b | ₹53.7b | 30.4x | 37.1x | 4.6x |
| Wed, 10 May 2023 | ₹1.8t | ₹423.0b | ₹53.0b | 29.2x | 33.2x | 4.2x |
| Fri, 07 Apr 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 24.8x | 30.1x | 3.9x |
| Sun, 05 Mar 2023 | ₹1.6t | ₹406.7b | ₹52.9b | 25.4x | 30.6x | 4x |
| Tue, 31 Jan 2023 | ₹1.6t | ₹406.7b | ₹53.5b | 27.7x | 30.5x | 4x |
| Thu, 29 Dec 2022 | ₹1.5t | ₹384.3b | ₹52.6b | 32.4x | 29.3x | 4x |
| Sat, 26 Nov 2022 | ₹1.6t | ₹382.1b | ₹52.3b | 34.7x | 30.3x | 4.1x |
| Mon, 24 Oct 2022 | ₹1.6t | ₹379.7b | ₹52.8b | 34.8x | 30.5x | 4.3x |
| Wed, 21 Sep 2022 | ₹1.7t | ₹365.8b | ₹53.2b | 34.7x | 32.6x | 4.7x |
| Fri, 19 Aug 2022 | ₹1.9t | ₹365.7b | ₹53.2b | 27.7x | 35.5x | 5.2x |
| Sun, 17 Jul 2022 | ₹1.7t | ₹393.8b | ₹58.0b | 31x | 29.8x | 4.4x |
| Tue, 14 Jun 2022 | ₹1.8t | ₹394.3b | ₹57.8b | 30.1x | 31.3x | 4.6x |
| Thu, 12 May 2022 | ₹1.7t | ₹387.6b | ₹55.5b | 27.6x | 31.4x | 4.5x |
| Sat, 09 Apr 2022 | ₹2.2t | ₹375.4b | ₹56.3b | 35.9x | 38.6x | 5.8x |
| Mon, 07 Mar 2022 | ₹1.9t | ₹375.4b | ₹56.3b | 28.4x | 33.2x | 5x |
| Wed, 02 Feb 2022 | ₹2.1t | ₹372.8b | ₹57.0b | 30.8x | 37.2x | 5.7x |
| Fri, 31 Dec 2021 | ₹2.1t | ₹359.4b | ₹54.9b | 27.7x | 38.3x | 5.9x |
| Sun, 28 Nov 2021 | ₹1.8t | ₹355.3b | ₹54.6b | 27.6x | 33.5x | 5.2x |
| Tue, 26 Oct 2021 | ₹1.7t | ₹348.2b | ₹76.7b | 29.1x | 22.8x | 5x |
Price to Earnings Ratio
22.8x
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 50.3x which is higher than its 3-year average PE of 38.1x.
- The 3-year average PS ratio of 5.4x 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 4.5% per year over the last three years.
- Meanwhile revenues for these companies have grown 9.3% 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 | -0.87% | |
| Tech | -0.61% | |
| Software | -1.44% | |
| Application Software | -0.33% | |
| Systems Software | -2.97% | |
Industry PE
- Investors are most optimistic about the Systems Software industry which is trading above its 3-year average PE ratio of 56.6x.
- Analysts are expecting annual earnings growth of 17.7%, 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 29.4x.
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 | |
|---|---|---|---|---|---|
| ZAGGLE Zaggle Prepaid Ocean Services | ₹445.30 | 6.4% +₹3.3b | 107.4% | PE93x | |
| 526881 63 moons technologies | ₹497.30 | 13.4% +₹2.7b | 78.8% | PE13.1x | |
| 532466 Oracle Financial Services Software | ₹11.59k | 0.3% +₹2.6b | 195.1% | PE43x | |
| TAC TAC Infosec | ₹776.55 | 15.8% +₹1.1b | n/a | PE128.6x | |
| 532407 MosChip Technologies | ₹232.15 | 2.2% +₹958.2m | 168.0% | PE413.2x |
