Returns On Capital At Tech Mahindra (NSE:TECHM) Have Stalled
Nov 09
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Indian (NIFTY) Tech Sector Analysis
UpdatedNov 09, 2025
DataAggregated Company Financials
Companies352
- 7D-1.9%
- 3M2.2%
- 1Y-18.7%
- YTD-20.1%
Over the last 7 days, the Tech industry has dropped 1.9%, driven by Tata Consultancy Services declining 2.2%. Meanwhile, Redington actually outperformed within the industry, gaining 15% in the last week. Overall the industry is down 19% in 12 months. As for the next few years, earnings are expected to grow by 11% per annum.
Sector Valuation and Performance
Has the Indian Tech Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 10 Nov 2025 | ₹38.2t | ₹11.5t | ₹1.5t | 33.6x | 25.8x | 3.3x |
| Wed, 08 Oct 2025 | ₹38.1t | ₹11.2t | ₹1.5t | 33.5x | 26x | 3.4x |
| Fri, 05 Sep 2025 | ₹38.0t | ₹11.2t | ₹1.5t | 32.9x | 26.2x | 3.4x |
| Sun, 03 Aug 2025 | ₹37.1t | ₹11.1t | ₹1.4t | 34.4x | 25.8x | 3.4x |
| Tue, 01 Jul 2025 | ₹41.3t | ₹10.9t | ₹1.4t | 34.1x | 29.3x | 3.8x |
| Thu, 29 May 2025 | ₹40.2t | ₹10.8t | ₹1.4t | 32.7x | 28.6x | 3.7x |
| Sat, 26 Apr 2025 | ₹38.2t | ₹10.7t | ₹1.4t | 31.6x | 27.5x | 3.6x |
| Mon, 24 Mar 2025 | ₹39.1t | ₹10.7t | ₹1.4t | 30x | 28.1x | 3.7x |
| Wed, 19 Feb 2025 | ₹42.5t | ₹10.6t | ₹1.4t | 32.4x | 30.7x | 4x |
| Fri, 17 Jan 2025 | ₹46.1t | ₹10.4t | ₹1.3t | 39.9x | 34.2x | 4.4x |
| Sun, 15 Dec 2024 | ₹49.4t | ₹10.2t | ₹1.3t | 42.7x | 37.3x | 4.8x |
| Tue, 12 Nov 2024 | ₹45.9t | ₹10.2t | ₹1.3t | 42.1x | 34.7x | 4.5x |
| Thu, 10 Oct 2024 | ₹45.3t | ₹9.8t | ₹1.3t | 41.3x | 35.7x | 4.6x |
| Sat, 07 Sep 2024 | ₹45.6t | ₹9.9t | ₹1.3t | 42.4x | 36x | 4.6x |
| Mon, 05 Aug 2024 | ₹42.9t | ₹9.8t | ₹1.3t | 42.9x | 33.9x | 4.4x |
| Wed, 03 Jul 2024 | ₹40.6t | ₹9.7t | ₹1.2t | 42.9x | 32.9x | 4.2x |
| Fri, 31 May 2024 | ₹36.1t | ₹9.7t | ₹1.2t | 40.2x | 29.2x | 3.7x |
| Sun, 28 Apr 2024 | ₹37.0t | ₹9.6t | ₹1.2t | 47.5x | 30x | 3.8x |
| Tue, 26 Mar 2024 | ₹37.8t | ₹9.6t | ₹1.2t | 42.7x | 31.3x | 3.9x |
| Thu, 22 Feb 2024 | ₹39.7t | ₹9.6t | ₹1.2t | 45.1x | 32.9x | 4.1x |
| Sat, 20 Jan 2024 | ₹39.7t | ₹9.6t | ₹1.2t | 46.1x | 32.4x | 4.2x |
| Mon, 18 Dec 2023 | ₹38.3t | ₹9.5t | ₹1.2t | 45.5x | 31.2x | 4x |
| Wed, 15 Nov 2023 | ₹33.0t | ₹9.5t | ₹1.2t | 40.8x | 27.1x | 3.5x |
| Fri, 13 Oct 2023 | ₹34.1t | ₹9.4t | ₹1.2t | 42x | 27.9x | 3.6x |
| Sun, 10 Sep 2023 | ₹34.0t | ₹9.3t | ₹1.2t | 40.2x | 28x | 3.7x |
| Tue, 08 Aug 2023 | ₹32.7t | ₹9.3t | ₹1.2t | 38.6x | 27x | 3.5x |
| Thu, 06 Jul 2023 | ₹31.6t | ₹9.0t | ₹1.2t | 35.1x | 26.7x | 3.5x |
| Sat, 03 Jun 2023 | ₹31.1t | ₹9.0t | ₹1.2t | 31.4x | 26.2x | 3.4x |
| Mon, 01 May 2023 | ₹29.4t | ₹8.9t | ₹1.2t | 29.3x | 24.7x | 3.3x |
| Wed, 29 Mar 2023 | ₹28.9t | ₹8.6t | ₹1.2t | 24.9x | 24.9x | 3.4x |
| Fri, 24 Feb 2023 | ₹32.4t | ₹8.9t | ₹1.2t | 25.8x | 28x | 3.6x |
| Sun, 22 Jan 2023 | ₹31.9t | ₹8.7t | ₹1.1t | 29.6x | 28x | 3.7x |
| Tue, 20 Dec 2022 | ₹30.9t | ₹8.5t | ₹1.1t | 29.4x | 27.4x | 3.6x |
| Thu, 17 Nov 2022 | ₹31.8t | ₹8.5t | ₹1.1t | 27.1x | 28.4x | 3.7x |
Price to Earnings Ratio
28.4x
Current Industry PE
- Investors are pessimistic on the Indian Information Technology industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 25.8x which is lower than its 3-year average PE of 29.5x.
- The 3-year average PS ratio of 3.8x is higher than the industry's current PS ratio of 3.3x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 9.8% per year over the last three years.
- Revenues for these companies have grown 11% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Indian Tech sector?
| IN Market | -0.97% | |
| Tech | -1.90% | |
| Electronic Equipment and Components | -0.35% | |
| IT | -1.75% | |
| Communications | -2.53% | |
| Software | -2.66% | |
| Semiconductors | -3.00% | |
| Tech Hardware | -11.01% | |
Industry PE
- Investors are most optimistic about the Tech Hardware industry even though it's trading below its 3-year average PE ratio of 113x.
- Analysts are expecting annual earnings growth of 41.5%, which is higher than its past year's earnings growth of 29.7% per year.
Forecasted Growth
- Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 77% over the next 5 years.
- This is better than its past earnings decline of 8.4% per year.
- In contrast, the IT industry is expected to see its earnings grow by 8.3% 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 | |
|---|---|---|---|---|---|
| REDINGTON Redington | ₹292.00 | 15.1% +₹29.9b | 53.0% | PE13.2x | |
| CPPLUS Aditya Infotech | ₹1.53k | 16.8% +₹25.9b | n/a | PE49.7x | |
| 504346 Rrp Semiconductor | ₹11.78k | 8.2% +₹12.2b | 12,553.7% | PE2470x | |
| 526433 ASM Technologies | ₹4.10k | 18.1% +₹9.2b | 169.6% | PE109.9x | |
| RATEGAIN RateGain Travel Technologies | ₹671.75 | 5.2% +₹4.0b | -18.1% | PE37.7x |
