ByIf you are Trading or Investing in the Share Market, you might be knowing that more and more IT companies are growing day by day in this technology age.
To become a part of such a growing industry, we should invest our money in an Information Technology (IT) company.
Top 10 IT companies listed in NSE
This article will be very helpful to you in that it will share all the top listed Information Technology – IT companies in the Indian Stock Market (NSE / BSE).
If you want to know all about stock market investing then just click the blue text to read complete guide on How to learn Stock Market investing. It is FREE.
Before looking at the actual list of companies, I would like to give some more detailed information about the IT – Software industry, which will help you to understand more about the industry.
About Industry : IT – Software
IT – Software Industry is the Second-Largest Industry in India by Market Capital. Currently, market capital of IT – Software industry is 2,992,557.94 Crore Rupees. As on 11 Sept 2022, there are more than 110 companies listed in NSE (National Stock Exchange).
All those companies support all other industries by acting as a core system of business.
IT companies handle all Transaction Processing System (TPS), Providing Management Information System (MIS) reporting, and integrating customers with the business actively.
Earlier IT Software industry used to help to Defence, Aerospace, Government or large scale / PAN India businesses. But in recent years things have changed, now every small scale business owner is taking help from IT companies to grow their business.
According to IBEF’s Report, the IT – Software industry’s Market Capital valuation is expected to reach 19.93 Billion US Dollar from 6.96 Billion USD.
You can read its full report by visiting this link, https://www.ibef.org/industry/information-technology-india
Although there are more than 110 IT companies listed in NSE, we will be looking for only 10 top companies among them, which are suitable for major investors who are looking for safety as well as profitability.
TCS
Safety – Market Capital – 11,77,226.60 Crore in INR
Profitability – PE (Price-Earning) Ratio – 30.58 – Fairly valued
Recommendation – Buy
Infosys
Safety – Market Capital – 6,36,149.21 Crore in INR
Safety – Market Capital – 6,36,149.21 Crore in INR
Profitability – PE (Price-Earning) Ratio – 29.77 – Fairly Valued
Recommendation – Buy
HCL Technologies
Safety – Market Capital – 2,57,472.54 Crore in INR
Safety – Market Capital – 2,57,472.54 Crore in INR
Profitability – PE (Price-Earning) Ratio – 23.67 – Fairly Valued
Recommendation – Buy
Wipro
Safety – Market Capital – 2,28,827.40 Crore in INR
Profitability – PE (Price-Earning) Ratio – 18.23 – Undervalued
Recommendation – Strong Buy
Tech Mahindra
Safety – Market Capital – 1,09,604.58 Crore in INR
Profitability – PE (Price-Earning) Ratio – 22.79 – Fairly Valued
Recommendation – Buy
L & T Infotech
Safety – Market Capital – 81,947.99 Crore in INR
Profitability – PE (Price-Earning) Ratio – 35.87 – Fairly Valued
Recommendation – Buy
Tata Elxsi
Safety – Market Capital – 54,918.48 Crore in INR
Profitability – PE (Price-Earning) Ratio – 88.43 – Overvalued
Recommendation – Avoid for now
Mindtree
Safety – Market Capital – 54585.30 Crore in INR
Profitability – PE (Price-Earning) Ratio – 30.65 – Fairly Valued
Recommendation – Buy
Mphasis
Safety – Market Capital – 40,322.63 Crore in INR
Profitability – PE (Price-Earning) Ratio – 31.99 – Fairly Valued
Recommendation – Buy
L&T Technology
Safety – Market Capital – 39,596.47 Crore in INR
Profitability – PE (Price-Earning) Ratio – 40.72 – Fairly or Slightly overvalued
Recommendation – Wait for the dip to buy
Final Verdict
If you wish to buy a single company among these top 10 IT companies listed in NSE, you should balance between Safety and Profitability. Market Capital is a factor of safety, while PE Ratio is the factor of profitability.
The best company is one which has greater Market Capital while smaller PE Ratio.
Extraordinary Notes –
- In general, if any company is having market capital greater than 10 thousand crore (INR Rupees) then that company is called a Large Capital company.
- If any company’s PE Ratio is less than 25, then it is highly profitable, whereas some good companies may show larger PE ratios because that company is expected to show good company results.
- Remember that, PE Ratio should not be less than or equal to zero (0). If any company is having such a PE Ratio, then consider that the company had a loss in the last corporate results.
- *Some of the data such as, Market Capital and PE Ratio recorded as per the date 11 September 2022. Such data is static in nature, so you should verify the data on your own if you are checking this article in the future.
Following method used to filter / select company
We have filtered these best / top 10 IT – software companies by following the method of company / stock selection.
Step 1 – Collected a complete list of the companies under the IT-Software industry.
Step 2 – By using basic data of Company Valuation and Profitability Ratio, we filtered and sorted top 10 IT companies listed in NSE by following priority.
Priority 1 – Safety – Market Capitalisation (Higher the better)
Priority 2 – Profitability – PE Ratio (Lesser the better)
If you do not know fundamental concepts used in this article, just click the word below to know more.
- Market Capital (M. Cap.)
- PE Ratio (Price Earning Ratio)
- PAN India – Presence Across Nation in India
Sources / Credits
- IBEF – IT – Software Industry Information
- India Infoline – Companies list comes under IT – Software Industry Sector with Company’s Fundamental Details
