India’s strong domestic consumption and investment will continue to support the growth of its economy, which is projected at 7.0% in FY 2019-20 and 7.1% in FY 2020-21

Among the sectors contributing to this robust growth story of the Indian Economy, the Information Technology (IT) sector remains a major one.

In this article, we will look into the best stocks in the Indian IT sector.

10 IT Sector Stocks You Can Bet On in 2019
Stock Name 52 week high 52 week low Market Cap (Cr) PE Ratio 1 yr Return Current Price
Tata Consultancy Services Ltd. 2275.95 1698.35 806,894 25.6 25.0% 2259.45
Wipro Ltd. 299.45 190.13 177,235 19.7 42.8% 282.35
HCL Technologies Ltd. 1187.60 880.05 152,819 18.0 22.4% 1061.70
Infosys Ltd. 773.00 580.52 313,518 20.4 24.2% 731.00
Larsen & Toubro Infotech Ltd. 1987.00 1436.70 29,766 26.5 13.3% 1815.00
NIIT Technologies Ltd. 1425.20 972.00 7,755 27.5 18.5% 1333.85
Zensar Technologies Ltd. 349.70 199.90 5,461 4.5 -0.9% 255.95
Sonata Software Ltd. 428.60 265.00 3,579 18.3 -5.1% 348.40
Mindtree Ltd. 1183.80 752.15 16,081 21.3 -5.0% 948.70
0.00 0.00 0 0.0 0.0% 0.00

10 Best Performing Stocks in the Indian IT Sector

1. Tata Consultancy Services Ltd. (TCS)

It is one of the pioneering IT companies in the country and is headquartered in Mumbai.

It is a part of the Tata Group and is the 2nd largest Indian company, after Reliance Industries Ltd. (RIL), by market capitalization and is now placed among the most valuable IT service brands worldwide having its operation in around 46 countries.

In April 2018, TCS became the 1st Indian IT company and 2nd Indian company ever (after RIL) to reach a $100 billion market capitalization, after it’s market capitalization stood at Rs 6,79,332.81 crore in Bombay Stock Exchange (BSE).

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 2082.75 2081.75
1 Year Profit / Loss (%) 18.74 18.43
3 Year Profit / Loss (%) 63.84 63.87
5 Year Profit / Loss (%) 97.50 97.55
Beta (1 year) 0.35 0.37
Avg. Daily Volatility (% on year basis) 1.50 1.53

Key Market Indicators

Market Cap (₹ Cr) 8,06,894
Book Value (₹) 237.86
P/E 25.62
Industry P/E
31.72
P/B 9.04
Dividend Yield (%) 1.40
Return on Equity (%)
35.18

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 38,010.00 18.50
EBITDA (₹ Cr) 11,267.00 16.80
Net Income (₹ Cr) 8,126.00 17.70
EPS (₹) 21.65 – 39.98

The company has reported a sales revenue of Rs. 38,010.00 Crore, in Q4 FY 2018-19 (which is an increase of 18.50% on a yearly basis).

Also, the company has reported a net profit of Rs. 8,126.00 crore in the latest quarter.

Note:  Values as on 22/05/2019

2. Wipro Ltd.

Wipro Ltd. is an Indian multinational company headquartered in Bengaluru and provides information technology (IT), consulting and business process services.

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it was incorporated on 29th December 1945 in Amalner, Maharashtra, by Mohamed Premji under the name “Western India Vegetable Products Limited”, which later abbreviated to “Wipro”.

Wipro Ltd’s key revenue segments include software services which contribute 96.31% of total sales and other services like networking, storage equipment, servers, and software licenses contributing 3.68% of total sales for the financial year ending March 2019.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 295.40 283.10
1 Year Profit / Loss (%) 42.81 42.87
3 Year Profit / Loss (%) 39.62 39.65
5 Year Profit / Loss (%) 56.41 56.46
Beta (1 year) 0.39 0.38
Avg. Daily Volatility (% on year basis) 1.44 1.46

Key Market Indicators

Market Cap (₹ Cr) 1,77,235
Book Value (₹) 93.71
P/E 19.97
Industry P/E
31.72
P/B 3.13
Dividend Yield (%) 0.34
Return on Equity (%)
15.95

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 15,006.30 18.60
EBITDA (₹ Cr) 4,014.30 34.30
Net Income (₹ Cr) 2,483.50 37.70
EPS (₹) 4.12 3.00

The company has reported a sales revenue of Rs. 15,006.30 Crore, in Q4 FY 2018-19 (which is an increase of 18.60% on a yearly basis).

Also, the company has reported a net profit of Rs. 2,483.50 crore in the latest quarter.

Note: Values as on 22/05/2019

3. HCL Technologies Ltd.

HCL Technologies Ltd. is a large-cap Indian multinational IT service and consulting company headquartered in Noida, Uttar Pradesh.

It is a subsidiary of HCL Enterprise where HCL stands for Hindustan Computers Limited.

Incorporated as an independent company in 1991, when HCL Enterprise ventured into the software services business. Originally, it was a research and development division of HCL Enterprise. 

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It has offices in 44 countries, including a worldwide network of R&D, innovation labs and delivery centers. It has more than 1,37,000 employees and its customers include 250 of the fortune 500 companies and 650 of the global 2000 companies.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 1059.20 1061.15
1 Year Profit / Loss (%) 17.14 17.34
3 Year Profit / Loss (%) 45.39 45.45
5 Year Profit / Loss (%) 60.44 60.54
Beta (1 year) 0.44 0.45
Avg. Daily Volatility (% on year basis) 1.61 1.66

Key Market Indicators

Market Cap (₹ Cr) 1,52,819
Book Value (₹) 292.27
P/E 17.96
Industry P/E 31.72
P/B 3.86
Dividend Yield (%) 1.06
Return on Equity (%) 24.46

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 5,990.00 21.34
EBITDA (₹ Cr) 3,794.00 14.14
Net Income (₹ Cr) 2,550.00 14.45
EPS (₹) 18.79 17.36

The company has reported a sales revenue of Rs. 5,990.00 Crore, in Q4 FY 2018-19 (which is an increase of 21.34% on a yearly basis).

Also, the company has reported a net profit of Rs. 2,550.00 crore in the latest quarter.

Note: Values as on 22/05/2019

4. Infosys Ltd.

Headquartered at Bengaluru, Infosys Ltd. is an Indian multinational corporation that provides IT service, outsourcing service and consulting to companies across sectors.

It is the 2nd largest Indian IT company in terms of revenues for FY 2018-19 and 596th largest public company in the world based on revenue.

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The credit rating of the company is A− , which is rated by Standard & Poor.

Its key products and services are:

  • NIA: It is a Next Generation Integrated AI Platform, previously known by the name Mana
  • Infosys Consulting: a global management consulting service
  • Infosys Information Platform (IIP): Analytics platform
  • EdgeVerve Systems, which includes Finacle, a global banking platform
  • Panaya Cloud Suite
  • Skava

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 709.20 709.75
1 Year Profit / Loss (%) 18.84 18.96
3 Year Profit / Loss (%) 17.67 17.78
5 Year Profit / Loss (%) 82.60 82.75
Beta (1 year) 0.40 0.40
Avg. Daily Volatility (% on year basis) 1.48 1.50

Key Market Indicators

Market Cap (₹ Cr) 3,13,518
Book Value (₹) 145.84
P/E 20.37
Industry P/E 31.72
P/B 4.96
Dividend Yield (%) 2.97
Return on Equity (%) 23.71

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 21,539.00 19.11
EBITDA (₹ Cr) 5,814.00 6.41
Net Income (₹ Cr) 4,074.00 10.41
EPS (₹) 9.36 – 44.84

The company has reported a sales revenue of Rs. 21,539.00 Crore, in Q4 FY 2018-19 (which is an increase of 21.34% on a yearly basis).

Also, the company has reported a net profit of Rs. 4,074.00 crore in the latest quarter.

Note: All the above values as on 22/05/2019

5. Larsen & Toubro Infotech Ltd.

Larsen & Toubro Infotech Ltd. (LTI) is a global IT service and consulting company based in Mumbai, India.

Incorporated in December 1996, LTI is a wholly owned subsidiary of Larsen & Toubro Ltd. (L&T) and was ranked number 6 in India IT companies in FY 2013–2014.

The company has around 39 offices in 27 countries across the globe.

Among all other Indian IT companies, LTI is most recently listed in Indian Stock Exchanges and has shown tremendous growth in a very small amount of time.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 1777.10 1781.20
1 Year Profit / Loss (%) 17.85 17.97
3 Year Profit / Loss (%) NA NA
5 Year Profit / Loss (%) NA NA
Beta (1 year) 0.67 0.65
Avg. Daily Volatility (% on year basis) 1.98 2.03

Key Market Indicators

Market Cap (₹ Cr) 29,766
Book Value (₹) 282.08
P/E 26.53
Industry P/E 31.72
P/B 6.08
Dividend Yield (%) 1.25
Return on Equity (%) 23.71

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 2,486.00 24.23
EBITDA (₹ Cr) 544.00 33.01
Net Income (₹ Cr) 378.90 30.88
EPS (₹) 21.60 30.75

The company has reported a sales revenue of Rs. 2,486.00 Crore, in Q4 FY 2018-19 (which is an increase of 24.23% on a yearly basis).

Also, the company has reported a net profit of Rs. 378.90 crore in the latest quarter.

Note: Values as on 22/05/2019

6. NIIT Technologies Ltd.

NIIT Technologies Ltd. is an IT service provider company with its customers across travel, transportation, banking and financial services, insurance, manufacturing, and media sectors.

Incorporated in the year 1992, is a mid-cap company and it offers services including application development and maintenance, infrastructure management, and business process management.

With over 10,000 employees serving clients across the Americas, Europe, Asia, and Australia, NIIT Technologies fosters a culture that promotes innovation and constantly seeks to find new yet simple ways to add value for its clients.

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Performance of the Stock

Parameters BSE NSE
Current Price (₹) 1283.30 1284.00
1 Year Profit / Loss (%) 22.15 22.34
3 Year Profit / Loss (%) 170.74 170.76
5 Year Profit / Loss (%) 255.88 256.01
Beta (1 year) 1.00 0.95
Avg. Daily Volatility (% on year basis) 2.14 2.16

Key Market Indicators

Market Cap (₹ Cr) 7,755
Book Value (₹) 333.41
P/E 27.55
Industry P/E 31.72
P/B 3.74
Dividend Yield (%) 1.20
Return on Equity (%) 19.46

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 972.20 23.25
EBITDA (₹ Cr) 178.80 11.89
Net Income (₹ Cr) 105.50 22.53
EPS (₹) 16.91 21.74

The company has reported a sales revenue of Rs. 972.20 Crore, in Q4 FY 2018-19 (which is an increase of 23.25% on a yearly basis).

Also, the company has reported a net profit of Rs. 105.50 crore in the latest quarter.

Note: All the above values as on 22/05/2019

7. Zensar Technologies Ltd.

Incorporated in 1991, Zensar Technologies Ltd. is one of the leading and fast growing digital solutions and technology services company that specializes in partnering with multinational organizations across industries on their digital transformation journey.

By about 2015, it had more than 6000 employees servicing about 400 companies over 20 global locations, and at the end of the 2016 financial year had built up to a turnover of USD 450 million.

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Even though the performance of the Zensar’s stock gave minimal returns in the last 1 year, this cannot be ruled out as one of the best performing IT stocks in the coming years.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 245.10 245.80
1 Year Profit / Loss (%) 0.31 0.32
3 Year Profit / Loss (%) 24.68 24.72
5 Year Profit / Loss (%) 251.85 251.82
Beta (1 year) 0.90 0.83
Avg. Daily Volatility (% on year basis) 2.65 2.66

Key Market Indicators

Market Cap (₹ Cr) 5,461
Book Value (₹) 86.26
P/E 4.52
Industry P/E 31.72
P/B 2.81
Dividend Yield (%) 0.99
Return on Equity (%) 16.14

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 1,057.41 29.79
EBITDA (₹ Cr) 154.83 25.91
Net Income (₹ Cr) 82.74 13.89
EPS (₹) 3.62 – 77.35

The company has reported a sales revenue of Rs. 1,057.41 Crore, in Q4 FY 2018-19 (which is an increase of 29.79% on a yearly basis).

Also, the company has reported a net profit of Rs. 82.74 crore in the latest quarter.

Note: Values as on 22/05/2019

8. Sonata Software Ltd.

Incorporated in the year 1994, Sonata Software Limited is a Global IT Services company headquartered at Bengaluru, Karnataka.

It provides services in, business intelligence and analytics, application development management (ADM),testing services, enterprise packages (ERP and CRM), and infrastructure management services.

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It went public in the year 1998 and currently has more than 4000 employees and an annual turnover of more than USD 500 million.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 333.60 335.10
1 Year Profit / Loss (%) – 3.33 – 3.35
3 Year Profit / Loss (%) 120.53 120.65
5 Year Profit / Loss (%) 642.19 642.23
Beta (1 year) 0.96 0.96
Avg. Daily Volatility (% on year basis) 2.51 2.53

Key Market Indicators

Market Cap (₹ Cr) 3,579
Book Value (₹) 70.20
P/E 18.35
Industry P/E 31.72
P/B 4.85
Dividend Yield (%) 3.09
Return on Equity (%) 29.47

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 843.96 10.07
EBITDA (₹ Cr) 95.06 32.83
Net Income (₹ Cr) 64.07 29.92
EPS (₹) 6.16 31.34

The company has reported a sales revenue of Rs. 843.96 Crore, in Q4 FY 2018-19 (which is an increase of 10.07% on a yearly basis).

Also, the company has reported a net profit of Rs. 64.07 crore in the latest quarter.

Note: Values as on 22/05/2019

9. MindTree Ltd.

MindTree Ltd. is an Indian multinational IT service and outsourcing company headquartered in Bengaluru, India and New Jersey, USA.

Incorporated in 1999, the company employs more than 20,200 employees (of which 31% are women) with annual revenue of USD 1 Billion. It has the largest operations in India and its major markets are the United States of America and Europe.

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As of Dec 2018, the company operates in e-commerce, mobile applications, cloud computing, digital transformation, data analytics, enterprise application integration, and enterprise resource planning. It has more than 340 active clients in over 17 countries.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 983.50 981.00
1 Year Profit / Loss (%) – 3.36 – 3.32
3 Year Profit / Loss (%) 52.47 52.49
5 Year Profit / Loss (%) 184.40 184.44
Beta (1 year) 0.58 0.56
Avg. Daily Volatility (% on year basis) 2.08 2.09

Key Market Indicators

Market Cap (₹ Cr) 16,081
Book Value (₹) 200.32
P/E 21.32
Industry P/E 31.72
P/B 4.89
Dividend Yield (%) 3.06
Return on Equity (%) 22.80

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 1,839.40 25.64
EBITDA (₹ Cr) 309.30 4.99
Net Income (₹ Cr) 198.40 8.89
EPS (₹) 12.05 8.75

The company has reported a sales revenue of Rs. 1,839.40 Crore, in Q4 FY 2018-19 (which is an increase of 25.64% on a yearly basis).

Also, the company has reported a net profit of Rs. 198.40 crore in the latest quarter.

Note: Values as on 22/05/2019

10. Newgen Software Technologies Ltd.

Newgen Software Technologies Ltd, is a small-cap company founded by Mr. Diwakar Nigam, its current CEO, in the year 1992.

This company started with a deal of providing document processing software to digitize paper documents for Canon Inc., which licensed it and partnered with Citibank India.

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It has a global footprint in over 60 countries with large, mission-critical solutions that have been deployed in banks, insurance firms, BPO’s, healthcare organizations, government and telecom companies.

Performance of the Stock

Parameters BSE NSE
Current Price (₹) 318.00 315.50
1 Year Profit / Loss (%) 25.62 25.73
3 Year Profit / Loss (%) NA NA
5 Year Profit / Loss (%) NA NA
Beta (1 year) 0.62 0.55
Avg. Daily Volatility (% on year basis) 2.34 2.34

Key Market Indicators

Market Cap (₹ Cr) 2,268
Book Value (₹) 62.78
P/E 30.36
Industry P/E 31.72
P/B 5.19
Dividend Yield (%) 0.61
Return on Equity (%)
20.57

Latest Quarterly Results

Q4 FY 2018-19 Results % Chg (Yearly)
Sales (₹ Cr) 203.97 10.96
EBITDA (₹ Cr) 82.07 3.25
Net Income (₹ Cr) 62.51 5.14
EPS (₹) 9.02 – 0.88

The company has reported a sales revenue of Rs. 203.97 Crore, in Q4 FY 2018-19 (which is an increase of 10.96% on a yearly basis).

Also, the company has reported a net profit of Rs. 62.51 crore in the latest quarter.

Note: Values as on 22/05/2019

The Bottom Line

The financial year 2018-19 has been a volatile time for the Indian stock market, but these top-performing stocks in the IT sector have posted solid growth despite that rockiness.

Happy Investing!

Disclaimer: The views expressed in this post are that of the author and not those of Groww. Groww in no-way advices or endorses the particular stocks mentioned in this article.