The IT sector of India has given significant growth in the country’s economy as well as for many investors. In this article, we will discuss some of the best IT stocks in India, their company profile, and the factors that need to be considered before investing in these IT stocks. So let’s get started

List of Best IT stocks in India

(Source: Screener)

Note: The ranking of these stocks is based on market capitalization. Please conduct a detailed analysis before investing. Metrics are recorded as of August 23rd, 2024, and may vary daily.

List of Best Mid Cap IT Stocks in India

(Source: Screener)

Note: The ranking of these stocks is based on market capitalization. Please conduct a detailed analysis before investing. Metrics are recorded as of August 23rd, 2024, and may vary daily.

List of Best Small Cap IT Stocks in India

(Source: Screener)

Note: The ranking of these stocks is based on market capitalization. Please conduct a detailed analysis before investing. Metrics are recorded as of August 23rd, 2024, and may vary daily.

Best IT Stocks in India - Overview

1) Tata Consultancy Services

Founded in the year 1968, TCS is a part of the Tata Group, it is a global IT services leader that offers consulting, digital, and business solutions. This company operates in more than 54 countries with a workforce of more than 6 lakh employees globally. 

By FY 24, the company generated 29.1 billion US dollars in revenue, catering to their services in cloud, and AI. TCS is committed to sustainability, aiming for net-zero carbon emissions by the year 2045. They operate in a wide range of industries like banking, financial services, insurance, telecommunications, and also healthcare.

2) Infosys

Infosys was founded in the year 1981 and is one of the global leaders in digital services and consulting. The company operates mainly through its Bangalore office and offers its services in more than 56 countries serving clients in various sectors, including banking, financial services, insurance, and manufacturing. The company is mainly known for its innovative solutions in AI, cloud computing, and digital transformation.

The company has over 3,17,000 employees and has generated revenues of Rs. 1,53,670 crores in FY 24. The company is also recognized for its leadership in AI services and ESG initiatives.

3) HCL Technologies

HCL Technologies is a leading IT service company in India founded in the year 1991. The company operates in more than 50 countries and serves a wide range of industries, including financial services, healthcare, manufacturing, and telecommunications. 

The company has a global presence and is recognized for its services in AI, cloud computing, and digital transformation. The company provides comprehensive digital solutions, including IT and business services, engineering and Research & Development Services, and other software products.

4) Wipro Ltd

Wipro was established in the year 1945 and is a leading global IT service, consulting, and business process services in India. The company operates in more than 65 countries and is known for providing innovative solutions in areas such as cloud computing, and AI. Wipro’s product portfolio caters to various industries including healthcare, manufacturing, and telecommunications.

In FY 24, Wipro reported revenues of 10.8 billion US dollars. The company is known for its sustainability initiatives and strong governance. The company is also committed to many CSR contributions through the Azim Premji Foundation.

5) LTIMindtree Ltd

The company LTIMindtree was formed from the merger of LTI and Mindtree and is one of the leading global technology consulting and digital solutions companies. They operate in more than 38 countries with more than 81,000 employees globally. LTIMindtree provides a wide range of services including digital transformation, data analytics, cloud services, and cybersecurity. 

LTIMindtree has reported a strong performance in FY 24 generating a revenue of 4.3 billion US dollars. The company has expanded its global reach and has enhanced its products making it a trusted partner for global enterprises.

6) Oracle Financial Services Software Ltd

Oracle Financial Services Software Ltd (OFSS) is a subsidiary of Oracle Corporation based in Mumbai, India. They provide IT solutions to the financial services industry. The company offers a wide range of software products, which include core banking, risk management, and compliance solutions for financial institutions globally. OFSS integrates advanced technologies like AI, machine learning, and cloud computing to enhance its products.

In FY 24, OFSS generated a revenue of Rs. 63.7 billion making a 12% increase from the previous year. OFSS integrates advanced technologies like AI, machine learning, and cloud computing to enhance its products.

7) Persistent Systems Ltd

Persistent Systems Limited is one of the leading global technology services companies based out of Pune, India. The company was established in the year 1990, specializing in software product development and technology services, in the areas of digital engineering, cloud, AI, and data analytics. 

Persistent Systems has reported a revenue of 1.18 billion US dollars in the year 2024 expanding its presence globally. They offer services to a wide range of industries including healthcare, financial services, technology, and more.

8) Mphasis Ltd

The company Mphasis is a leading global technology services provider in India. The company mainly specializes in the cloud and other services and offers digital transformation solutions that use AI, cloud computing, and other techs.  They are focused on delivering hyper-personalized digital experiences to its clients. The company serves various industries including banking, financial services, insurance, healthcare, and other sectors. 

In FY 24, the company reported a sales revenue of Rs. 13,279 crores from their global operations. Mphasis strives to strengthen its AI capabilities, strategic partnerships, and other products to enhance its customer experience across the globe.

9) L&T Technolgy Services Ltd

L&T Technology Services Limited is a subsidiary of Larsen & Toubro Ltd and is a global leader in pure-play engineering, and R & D services. LTTS provides services across different domains including transportation, industrial products, telecom, and hi-tech devices. 

LTTS has achieved a revenue of Rs. 96,473 million. The company is currently operating in more than 25 countries with over 24,00 employees serving 381 global clients. LTTS is committed to sustainability, with a focus on innovation, and digital transformation.

10) KPIT Technologies Ltd

KPIT Technologies Limited is a global leader in automotive software and systems integration. The company is focused mainly on the automotive and mobile industry. They provide solutions in various sectors such as auto driving, electric, and powertrains. 

In FY 24, KPIT has generated a revenue of Rs. 48,715 million. Their strategic focus on the automotive industry has led to major client engagements, particularly in the eclectic vehicles segment. The company has operations in more than 25 countries with more than 13,000 employees globally.

11) Affle India Ltd

Affle India is a global technology company based in Gurugram, India. The company was founded in the year 2005 and specializes in consumer platforms that provide targeted mobile advertising. Affle India uses AI and machine learning tools to offer services to its consumer platforms. The company operates in 130 countries across the globe.

In FY 24 they generated a revenue of Rs. 1843 crores through their operations worldwide. Affle is set to invest highly in sustainability and other specialized technologies to enhance its products.

12) Firstsource Solutions Ltd

This company is a leading provider of business process management services focusing mainly on healthcare, banking, financial services, and technology services. They were established in Mumbai, India in the year 2001 and has expanded its operations in the US, UK, India, the Philippines, and Mexico. The company uses data and technology to provide solutions to more than 150 clients globally.

The company Firstsource has reported a revenue of Rs. 63,362 million in FY 24. The company operates in 40 centres globally with over 27,940 employees. They are committed to improving the products and services, particularly through the integration of AI.

13) Cyient Ltd

Cyient Ltd is a company based in Hyderabad that offers global engineering and technology solutions to its clients. The company caters to various sectors like engineering, manufacturing, geospatial, network, and operational services in industries like aerospace, defense rail transport, and more.

In FY 24, Cyient reported a revenue of 173.9 million US dollars. They operate in more than 48 centers worldwide serving more than 500 global clients with over 16,000 employees worldwide.

14) Zensar Technologies Ltd

Zensar Tech Ltd was established as a part of the RPG group, it is one of the leading technology solutions in India. The company offers to provide digital services and technology solutions to clients in various industries like banking, financial services, and so on. 

They have a global presence in over 33 cities with a workforce of more than 10,300 employees. Zensar Ltd has generated a revenue of Rs. 49,019 million in FY 24. The company has taken strategic initiatives for experience-led solutions and advanced engineering services. 

15) Birlasoft Ltd

Birlasoft Ltd is a part of Birla Group, it is a global IT services and solutions to their clients. The company caters to various key industries like manufacturing, banking, and utilities. Birlasoft’s product portfolio includes cloud solutions, ERP, data analytics, and infrastructure with technologies like generative AI.

In FY 24, they achieved a revenue of 637.2 million US dollars. They have a global presence across the world. Birlasoft positions itself as a leader in digital transformation and IT services.

What is an IT Stock?

IT stocks refer to the shares of the companies that are actively engaged in the Information Technology Sector. They are the companies that are mainly involved in the development, production, sale, and maintenance of tech-related products and services like software, hardware, IT services, and more.

IT Industry in India

As a major contributor towards GDP and socio-economic development, India’s IT sector has grown into an emergent sector for national economic development. For instance, in FY23 the IT segment accounted for 7.5% of India’s GDP and is projected to attain 10% by 2025. Fast acceptance of digital technologies across all industries is speeding this growth through the Digital India Programme which has provided internet access to a total of 76 crore citizens in India. The sector's international competitiveness is shown in its strong export performance where IT services exports reached 194 billion US dollars in FY23 which makes them account for over half of total IT exports.

The Indian IT industry attracts considerable investments with sufficient backing for innovation making it one of the leading offshore destinations globally. The sector’s revenue went up to 245 billion US dollars in FY23 moreover, IT spending is expected to grow by 11.1%, amounting to 138.6 billion US dollars in 2024. Additionally, it offers numerous job opportunities; in FY23 alone, approximately 2.9 lakh new jobs were created resulting in a total employment of about 5.4 million people within this sector that year.

Factors to consider before investing in IT stocks in India

Consider these key factors when investing in the best IT stocks in India:

Global Economic Conditions

Global economic circumstances like recession in these areas can influence the requirement for IT services.

Technology Trends

Technological advancement can have an impact on the industry, companies that evolve these trends can generate higher profits than their competitors.

Company Fundamentals

Evaluate and check the company’s earnings, debt, and revenue growth before investing in the infra stocks.

Government Policy and Budget

The Annual budget and government policies can have a significant impact on the industry. Changes in the policies can affect government contracts and spending.

Industry Competition

The IT sector is a highly competitive market, with both domestic and international companies. So increased competition can impact the growth and revenues of the company.

Regulatory Changes

The changes in the regulations in the major markets like the US and others can directly impact Indian IT companies as most of these firms also operate in foreign markets.

How to Invest in the IT Stocks in India

Now that we’ve understood the factors to consider before investing in IT stocks in India, let’s look at the steps to invest in them:

• Research and find out the top-performing IT stocks in the market

• Evaluate and assess your risk appetite and fix your financial goals

• Shortlist the stocks based on your fundamental and technical analysis

• Open Demat account and trading account through a trusted stockbroker

• Invest in the shortlisted stocks and monitor them regularly

Conclusion

The performance of stocks in India’s IT sector can be affected by a variety of factors. Therefore, it is best to perform a thorough analysis to understand the company’s performance and make better decisions. In addition, understanding the industry trends will enable investors to get more out of their investments over time given that the sector is always evolving.

To begin your investment journey with confidence, explore Rupeezy’s app and start investing in the best IT stocks in India today.