The IT sector in India has emerged as a pivotal player in the country’s economic landscape, driving significant growth and innovation. Renowned for its robust service offerings, including software development, IT consulting, and business process outsourcing, this sector has positioned India as a global hub for technology solutions. India’s IT and business services market is expected to grow to US$ 19.93 billion by 2025. In FY23, the IT sector represented 7.5% of India’s GDP, and it is projected to increase its contribution to 10% by 2025. In this article, check the best IT stocks in India for October 2024 based on their 5-yr CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Persistent Systems Ltd | 78,659.12 | 71.93 | 78.59 | 86.93 |
| Tanla Platforms Ltd | 11,859.42 | 21.63 | 78.47 | -16.41 |
| KPIT Technologies Ltd | 45,892.72 | 77.19 | 78.04 | 50.54 |
| Bls International Services Ltd | 14,585.29 | 46.60 | 76.67 | 42.49 |
| eClerx Services Limited | 14,185.97 | 27.74 | 63.17 | 47.15 |
| Tata Elxsi Ltd | 47,183.66 | 59.56 | 61.31 | 1.80 |
| Newgen Software Technologies Ltd | 18,103.66 | 71.95 | 56.66 | 182.64 |
| Birlasoft Ltd | 16,054.90 | 25.74 | 55.86 | 9.93 |
| Mastek Ltd | 8,211.22 | 27.34 | 52.68 | 9.68 |
| Firstsource Solutions Ltd | 20,976.58 | 40.75 | 45.53 | 86.65 |
Note: The best IT stocks list provided here is as of October 8, 2024. The stocks are selected from the Nifty 500 universe and are sorted based on the 5-yr CAGR.
Persistent Systems provides software engineering and strategic services to help businesses modernise and implement digital solutions. For FY 2024, the company reported a revenue of ₹98,215.87 million, up from ₹83,505.92 million in FY 2023. The company’s profit was ₹10,934.92 million in FY 2024, which rose from ₹9,210.93 million in FY 2023.
Key Metrics:
Tanla Platforms Ltd (previously known as Tanla Solutions Ltd) is a cloud communications company that empowers businesses to connect with their customers and target audiences. Tanla is a global provider of A2P (application-to-person) messaging platforms. For FY 2024, the company reported a total income of ₹3,97,043.06 lakh, up from ₹3,38,075.41 lakh in FY 2023. The company’s profit was ₹54,831.55 lakh in FY 2024, compared to ₹44,764.86 lakh in FY 2023.
Key Metrics:
KPIT Technologies is a global partner in the automotive and mobility ecosystem, driving the development of software-defined vehicles. For FY 2024, the company reported a total income of ₹49,318.08 million, up from ₹34,052.30 million in FY 2023. The company’s profit was ₹5,985.13 million in FY 2024, compared to ₹3,868.63 million in FY 2023.
Key Metrics:
BLS International Services Limited (BLS) is a part of the four-decades-old BLS Group with a global presence. The company provides a diversified range of services and is the biggest global player in visa application outsourcing. For FY 2024, the company reported a total income of ₹1,71,676.28 lakh, up from ₹1,53,743.88 lakh in FY 2023. The company’s profit was ₹32,562.21 lakh in FY 2024, compared to ₹20,426.58 lakh in FY 2023.
Key Metrics:
eClerx Services Limited offers business process management, automation, and analytics services to several Fortune 2000 companies. For FY 2024, the company reported a total income of ₹21,399.37 million, up from ₹19,448.80 million in FY 2023. The company’s profit was ₹3,570.43 million in FY 2024, which declined from ₹3,784.02 million in FY 2023.
Key Metrics:
As reported by the National Association of Software and Service Companies (NASSCOM), the Indian IT industry’s revenue reached US$ 227 billion in FY22. The sector also created 2,90,000 new jobs, bringing the total workforce to 5.4 million in FY23.
The Indian software product industry is projected to hit US$ 100 billion by 2025. Indian firms are increasingly investing internationally to broaden their global presence and enhance their global delivery centres. In the Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on July 23, 2024, an allocation of ₹1,16,342 crore (approximately US$ 13.98 billion) was proposed for the IT and Telecom sectors.
In March 2024, the Cabinet approved over ₹10,300 crore (around US$ 1.2 billion) for the IndiaAI Mission, marking a significant advancement in strengthening India’s AI ecosystem. The government is prioritizing areas such as cybersecurity, hyper-scale computing, AI, and blockchain technologies. With data costs at ₹10 per GB (approximately $0.12 per GB), India is recognised as one of the most cost-effective markets globally.
With government backing and contributions from companies, the Indian IT sector is experiencing substantial growth.
Apart from the stocks mentioned above, there are several other IT sector stocks in India. Do your research by understanding the company’s financials, business objectives and future prospects. Talk to a financial advisor before making a decision.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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