What You Can Learn From Sonata Software Limited's (NSE:SONATSOFTW) P/EAfter Its 29% Share Price Crash
May 09
Indian (NIFTY) Tech Sector Analysis
UpdatedMay 09, 2024
DataAggregated Company Financials
Companies294
- 7D0.6%
- 3M-8.6%
- 1Y24.2%
- YTD-2.3%
The Tech industry has stayed flat over the last week. As for the the longer term, the industry is up 24% over the past 12 months. Earnings are forecast to grow by 12% annually.
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 |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | ₹36.9t | ₹9.7t | ₹1.2t | 46x | 29.9x | 3.8x |
| Sat, 06 Apr 2024 | ₹38.3t | ₹9.6t | ₹1.2t | 46.2x | 31.7x | 4x |
| Mon, 04 Mar 2024 | ₹40.2t | ₹9.6t | ₹1.2t | 46.4x | 33.4x | 4.2x |
| Wed, 31 Jan 2024 | ₹38.8t | ₹9.6t | ₹1.2t | 46x | 31.7x | 4.1x |
| Fri, 29 Dec 2023 | ₹38.1t | ₹9.5t | ₹1.2t | 46.1x | 31x | 4x |
| Sun, 26 Nov 2023 | ₹34.3t | ₹9.5t | ₹1.2t | 40.6x | 28.1x | 3.6x |
| Tue, 24 Oct 2023 | ₹33.0t | ₹9.4t | ₹1.2t | 41.7x | 26.9x | 3.5x |
| Thu, 21 Sep 2023 | ₹34.6t | ₹9.3t | ₹1.2t | 39.5x | 28.5x | 3.7x |
| Sat, 19 Aug 2023 | ₹32.3t | ₹9.3t | ₹1.2t | 38.6x | 26.7x | 3.5x |
| Mon, 17 Jul 2023 | ₹32.8t | ₹9.1t | ₹1.2t | 35.8x | 27.2x | 3.6x |
| Wed, 14 Jun 2023 | ₹30.8t | ₹9.0t | ₹1.2t | 34.3x | 26x | 3.4x |
| Fri, 12 May 2023 | ₹29.9t | ₹8.9t | ₹1.2t | 29.5x | 25.1x | 3.3x |
| Sun, 09 Apr 2023 | ₹29.9t | ₹8.6t | ₹1.2t | 26.9x | 25.8x | 3.5x |
| Tue, 07 Mar 2023 | ₹32.1t | ₹8.9t | ₹1.2t | 25.4x | 27.8x | 3.6x |
| Thu, 02 Feb 2023 | ₹32.2t | ₹8.8t | ₹1.1t | 28.6x | 28x | 3.6x |
| Sat, 31 Dec 2022 | ₹31.1t | ₹8.6t | ₹1.1t | 29.1x | 27.6x | 3.6x |
| Mon, 28 Nov 2022 | ₹32.1t | ₹8.5t | ₹1.1t | 28.9x | 28.5x | 3.8x |
| Wed, 26 Oct 2022 | ₹30.4t | ₹8.4t | ₹1.1t | 28.3x | 26.9x | 3.6x |
| Fri, 23 Sep 2022 | ₹28.9t | ₹8.1t | ₹1.1t | 28.4x | 26.2x | 3.6x |
| Sun, 21 Aug 2022 | ₹32.0t | ₹8.1t | ₹1.1t | 26.7x | 29x | 4x |
| Tue, 19 Jul 2022 | ₹28.5t | ₹7.9t | ₹1.1t | 27.3x | 25.6x | 3.6x |
| Thu, 16 Jun 2022 | ₹29.9t | ₹7.7t | ₹1.1t | 28.4x | 27.2x | 3.9x |
| Sat, 14 May 2022 | ₹31.5t | ₹7.6t | ₹1.1t | 28.5x | 28.8x | 4.1x |
| Mon, 11 Apr 2022 | ₹36.6t | ₹7.3t | ₹1.1t | 34.5x | 34.6x | 5x |
| Wed, 09 Mar 2022 | ₹34.9t | ₹7.4t | ₹1.1t | 30.4x | 32.8x | 4.7x |
| Fri, 04 Feb 2022 | ₹37.0t | ₹7.3t | ₹1.1t | 33.9x | 35x | 5.1x |
| Sun, 02 Jan 2022 | ₹39.7t | ₹7.0t | ₹1.0t | 32.3x | 38.1x | 5.7x |
| Tue, 30 Nov 2021 | ₹36.2t | ₹7.0t | ₹1.0t | 26.7x | 34.7x | 5.2x |
| Thu, 28 Oct 2021 | ₹35.5t | ₹6.9t | ₹1.1t | 29.5x | 32.9x | 5.1x |
| Sat, 25 Sep 2021 | ₹37.6t | ₹6.6t | ₹1.0t | 29.9x | 36.5x | 5.7x |
| Mon, 23 Aug 2021 | ₹34.9t | ₹6.7t | ₹1.0t | 25.4x | 33.7x | 5.2x |
| Sat, 10 Jul 2021 | ₹31.3t | ₹6.7t | ₹1.0t | 23.9x | 30.1x | 4.7x |
Price to Earnings Ratio
30x
Current Industry PE
- Investors are relatively neutral on the Indian Information Technology industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 29.9x.
- The industry is trading close to its 3-year average PS ratio of 4.1x.
Past Earnings Growth
- The earnings for companies in the Information Technology industry have grown 8.4% per year over the last three years.
- Revenues for these companies have grown 15% 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 | -1.48% | |
| Tech | 0.62% | |
| Tech Hardware | 13.20% | |
| IT | 1.07% | |
| Semiconductors | -0.10% | |
| Software | -0.71% | |
| Electronic Equipment and Components | -4.81% | |
| Communications | -4.98% | |
Industry PE
- Investors are most optimistic about the Communications industry which is trading above its 3-year average PE ratio of 171x.
- Analysts are expecting annual earnings growth of 63.5%, which is higher than its past year's earnings growth of 13.6% per year.
Forecasted Growth
- Analysts are most optimistic on the Communications industry, expecting annual earnings growth of 63% over the next 5 years.
- This is better than its past earnings growth rate of 14% per year.
- In contrast, the IT industry is expected to see its earnings grow by 10.0% 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 | |
|---|---|---|---|---|---|
| TCS Tata Consultancy Services | ₹3.96k | 2.5% +₹350.6b | 20.7% | PE31.2x | |
| INFY Infosys | ₹1.44k | 1.8% +₹120.6b | 14.6% | PE22.6x | |
| NETWEB Netweb Technologies India | ₹1.98k | 12.5% +₹12.4b | n/a | PE146.6x | |
| ALPEXSOLAR Alpex Solar | ₹681.70 | 15.5% +₹2.2b | n/a | PE440.6x | |
| 542770 Alphalogic Techsys | ₹212.60 | 25.5% +₹2.0b | 621.5% | PE224x |
