- Date : 16/08/2023
- Read: 3 mins
A look at the top IT companies in India and their key business and financial information
By the end of 2021, the Nifty IT index was just a few points shy of 39,000 before plummeting to 26,000. Since then, the index has stagnated, barely touching 31,000 on 2-3 occasions.
The IT sector has had an indifferent year and a half since early 2022
Presently, it is making another attempt to revive
Top IT stocks like TCS, Infy and Wipro have maintained steady return
Investors must continue regular review and monitoring of their stock investments
However, it is an index that has market heavyweights like TCS, Infosys, Wipro, HCL and Tech Mahindra. Long-term investors have little reason to worry, as IT is certain to continue to be an important sector in the years to come. As the sector takes another shot at revival, we look at some of the best IT stocks you can invest in 2023.
1. Tata Consultancy Services
With a market capitalisation of over Rs 12 lakh crore, it is one of the largest companies in India. It is the market leader and has a 3-year CAGR of 12.3% in revenue, 12.1% in operating profit, and 9.2% in net profit. It has an earning per share (EPS) of Rs 115 and it has zero debts. Its FY 2023 order book is valued at $34.1 billion, with core strengths in cloud modernisation, cyber security, IoT and digital engineering.
It has a market capitalisation of Rs 5.88 lakh crore and has a 3-year CAGR of 16.9% in revenue, 16.4% in operating profit, and 13.2% in net profit. It has an EPS of Rs 57 and it has zero debts. Its FY 2023 order book stands at $9.8 billion. Its clientele includes 185 Fortune 500 companies, across services like cloud business, data analytics, AI, IoT, enterprise tech, etc.
Wipro has a market capitalisation of Rs 2.18 lakh crore, an EPS of Rs 20.73, and a debt-equity ratio of 0.19. It has a 3-year CAGR of 13.2% in revenue, 10.9% in operating profit, and 5.3% in net profit. In the last financial year, Wipro posted a 28% increase in its order book. It has a strong clientele in the Indian state-run enterprise segment. It serves clients across competencies like data analytics, AI, enterprise architecture, consulting, etc.
4. HCL Tech
HCL has a market capitalisation of Rs 3.19 lakh crore, an EPS of Rs 54.85, and a debt-equity ratio of 0.03. It has a 3-year CAGR of 13% in revenue, 9.3% in operating profit, and 10.3% in net profit. In its Q1 FY24 earnings release, it disclosed the winning of 18 large deals, and a pipeline growth of 26.2% year-on-year.
From a long-term perspective, investing in these leading IT companies can result in sustained growth over the years. As an investor, don’t forget to monitor their business and stock performances regularly.
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Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.