What You Can Learn From Sonata Software Limited's (NSE:SONATSOFTW) P/EAfter Its 29% Share Price Crash
May 09
Indian (NIFTY) IT Industry Analysis
UpdatedMay 08, 2024
DataAggregated Company Financials
Companies131
- 7D1.6%
- 3M-8.9%
- 1Y20.1%
- YTD-3.5%
The IT industry is up 1.6% in the last week, with Tata Consultancy Services up 4.1%. This means that the industry has gained 20% over the past year. As for the next few years, earnings are expected to grow by 10% per annum.
Industry Valuation and Performance
Has the Indian IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 09 May 2024 | ₹31.9t | ₹7.7t | ₹1.1t | 36.9x | 28.1x | 4.1x |
| Sat, 06 Apr 2024 | ₹33.1t | ₹7.7t | ₹1.1t | 38.1x | 29.8x | 4.3x |
| Mon, 04 Mar 2024 | ₹35.1t | ₹7.7t | ₹1.1t | 35.8x | 31.6x | 4.6x |
| Wed, 31 Jan 2024 | ₹34.0t | ₹7.8t | ₹1.1t | 41.5x | 30x | 4.3x |
| Fri, 29 Dec 2023 | ₹33.6t | ₹7.8t | ₹1.1t | 41.8x | 29.4x | 4.3x |
| Sun, 26 Nov 2023 | ₹30.0t | ₹7.7t | ₹1.1t | 37.3x | 26.4x | 3.9x |
| Tue, 24 Oct 2023 | ₹28.9t | ₹7.7t | ₹1.1t | 37.9x | 25.4x | 3.8x |
| Thu, 21 Sep 2023 | ₹30.6t | ₹7.6t | ₹1.1t | 37.2x | 27.3x | 4x |
| Sat, 19 Aug 2023 | ₹28.6t | ₹7.6t | ₹1.1t | 35.7x | 25.4x | 3.8x |
| Mon, 17 Jul 2023 | ₹29.1t | ₹7.5t | ₹1.1t | 32.3x | 26x | 3.9x |
| Wed, 14 Jun 2023 | ₹27.4t | ₹7.4t | ₹1.1t | 31.9x | 24.9x | 3.7x |
| Fri, 12 May 2023 | ₹26.9t | ₹7.4t | ₹1.1t | 26.4x | 24.3x | 3.6x |
| Sun, 09 Apr 2023 | ₹27.2t | ₹7.1t | ₹1.1t | 23.9x | 25.3x | 3.8x |
| Tue, 07 Mar 2023 | ₹29.3t | ₹7.4t | ₹1.1t | 24.8x | 27.4x | 4x |
| Thu, 02 Feb 2023 | ₹29.4t | ₹7.4t | ₹1.1t | 26.2x | 27.6x | 4x |
| Sat, 31 Dec 2022 | ₹28.3t | ₹7.1t | ₹1.0t | 25.7x | 27x | 4x |
| Mon, 28 Nov 2022 | ₹29.3t | ₹7.1t | ₹1.0t | 24.2x | 28x | 4.1x |
| Wed, 26 Oct 2022 | ₹27.7t | ₹7.1t | ₹1.0t | 24x | 26.4x | 3.9x |
| Fri, 23 Sep 2022 | ₹26.0t | ₹6.8t | ₹1.0t | 24.3x | 25.4x | 3.8x |
| Sun, 21 Aug 2022 | ₹29.1t | ₹6.8t | ₹1.0t | 24.9x | 28.4x | 4.3x |
| Tue, 19 Jul 2022 | ₹25.8t | ₹6.6t | ₹1.0t | 26x | 25.1x | 3.9x |
| Thu, 16 Jun 2022 | ₹27.2t | ₹6.4t | ₹1.0t | 27.1x | 26.8x | 4.3x |
| Sat, 14 May 2022 | ₹28.8t | ₹6.4t | ₹1.0t | 28.4x | 28.4x | 4.5x |
| Mon, 11 Apr 2022 | ₹33.3t | ₹6.1t | ₹976.9b | 34x | 34.1x | 5.5x |
| Wed, 09 Mar 2022 | ₹32.2t | ₹6.1t | ₹981.6b | 30.3x | 32.8x | 5.3x |
| Fri, 04 Feb 2022 | ₹33.8t | ₹6.0t | ₹974.1b | 30.8x | 34.7x | 5.6x |
| Sun, 02 Jan 2022 | ₹36.5t | ₹5.8t | ₹957.1b | 32.2x | 38.1x | 6.3x |
| Tue, 30 Nov 2021 | ₹33.4t | ₹5.8t | ₹960.0b | 27.4x | 34.8x | 5.8x |
| Thu, 28 Oct 2021 | ₹32.7t | ₹5.7t | ₹974.8b | 30.2x | 33.5x | 5.7x |
| Sat, 25 Sep 2021 | ₹34.8t | ₹5.5t | ₹928.3b | 31.4x | 37.5x | 6.4x |
| Mon, 23 Aug 2021 | ₹32.5t | ₹5.5t | ₹937.0b | 24.5x | 34.7x | 5.9x |
| Sat, 10 Jul 2021 | ₹28.9t | ₹5.5t | ₹937.0b | 22.8x | 30.8x | 5.2x |
Price to Earnings Ratio
30.7x
Current Industry PE
- Investors are relatively neutral on the Indian IT 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 29.2x.
- The industry is trading close to its 3-year average PS ratio of 4.5x.
Past Earnings Growth
- The earnings for companies in the IT industry have grown 9.0% per year over the last three years.
- Revenues for these companies have grown 14% 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 industry?
| IN Market | -1.98% | |
| Tech | 1.08% | |
| IT | 1.56% | |
| IT Consulting | 1.56% | |
| Internet Services and Infrastructure | 1.07% | |
| Data Processing Services | -5.15% | |
Industry PE
- Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio of 31.4x.
- It looks like they are confident that earnings will grow faster in the future than they have historically.
- Investors are most pessimistic about the IT Consulting industry, which is trading close to its 3-year average of 28.7x.
Forecasted Growth
- Analysts are most optimistic on the Data Processing Services industry, expecting annual earnings growth of 15% over the next 5 years.
- However this is lower than its past earnings growth rate of 21% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 10% 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 | ₹3.98k | 4.1% +₹565.5b | 21.0% | PE31.3x | |
| INFY Infosys | ₹1.43k | 0.5% +₹44.5b | 13.0% | PE22.4x | |
| TECHM Tech Mahindra | ₹1.29k | 1.9% +₹20.7b | 23.0% | PE48.2x | |
| 507685 Wipro | ₹462.90 | 0.1% +₹3.9b | 20.7% | PE21.9x | |
| 538891 Magellanic Cloud | ₹640.05 | 5.2% +₹3.7b | 230.3% | PE91.2x |
