Are you an investor with a keen interest in technology, eager to enhance your portfolio with high-performing IT stocks? Your search ends here with our curated selection of the ten IT stocks worth your attention. From industry stalwarts to emerging innovators, we’ve compiled a comprehensive list of the most promising stocks poised to elevate your portfolio to new heights.
The Context
While the IT industry in India isn’t currently experiencing its fastest growth, it has shown significant progress and potential over the past decade.
To clarify, the Indian IT industry is divided into two main categories: business process outsourcing and IT services (BPO).
According to a report by the global consulting firm McKinsey, India’s technology services industry can achieve $300—$350 billion in annual revenue if it can exploit the fast-emerging business potential in Cloud, Artificial Intelligence (AI), Cybersecurity, and other emerging technologies.
With an approximate 8% contribution to India’s GDP, Indian IT companies seem to have a bright future for at least the next ten years. Our top ten options from this lucrative area are presented below.
1. Tata Consultancy Service
Tata Consultancy Service is among the largest IT companies in India in terms of revenue and is ranked first among the top 10 Indian IT stocks.
For the past 50 years, TCS, a provider of IT services, consulting, and business solutions, has collaborated on transformational projects with the biggest corporations in the world. TCS provides an integrated spectrum of business, technology, engineering, and consulting services and solutions. In terms of market capitalization, it is India’s biggest corporation.
It is also the largest in our list of top 10 IT companies in India in 2022.
Fun fact- 2019 saw a partnership between TCS and the Indian Post. It is anticipated that throughout time, Indian post would see numerous technological changes which will include modernization of the distribution system and improved customer experience.
2. Infosys
When it comes to consulting, technology, outsourcing, and next-generation digital services, Infosys is a market leader that enables clients to carry out their digital transformation initiatives.
On our list of the top 10 Indian IT stocks, Infosys proudly occupies the second position.
The strategic goal of Infosys is to establish a long-lasting business that continues to serve clients’ needs, while also providing employees with opportunities for professional advancement and producing strong financial returns for investors.
Infosys’ strategy alternatively is to be a navigator for its clients as they ideate, plan, and execute their journey to a digital future. Infosys is the first Indian Information Technology Company from India to be listed on NASDAQ.
Fun fact- Infosys took a chance by coming public in 1993, as the nation was still working to recover from the largest financial fraud of that year. When it went public, its IPO was undersubscribed by 13 percent.
3. HCL Technologies
HCL Tech is a leading global IT services company, which is ranked among the top five Indian Information Technology services companies in terms of revenue.
HCL Tech has focused on transformational outsourcing since it entered the global market following its IPO in 1999. The company offers an integrated portfolio of services comprising software-led IT solutions, remote infrastructure management, engineering, R&D services, and BPO.
The HCL business, which is ranked third among the top 10 Indian IT stocks, uses its extensive global offshore infrastructure and network of 46 offices to provide numerous services across significant industry verticals.
In important industry verticals like financial services, manufacturing, telecommunications, media, publishing, entertainment, retail & CPG, life sciences & healthcare, oil & gas, energy & utilities, travel, transportation & logistics, and government, the company offers comprehensive multi-service delivery.
Fun fact- HCL operates around the distinctive tenet of “Employee First, Customer Second.” Vineet Nayar, the HCL CEO, is credited for this unique approach.
4. Wipro Ltd
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information technology consulting and business process services company and ranks at number four on this list of top 10 Indian IT stocks.
The company uses new technologies, cloud computing, robotics, hyper-automation, cognitive computing, and emerging technologies to help clients succeed in the digital era. It is the fourth-largest Indian IT company.
Wipro is a well-known Indian IT company with a solid reputation abroad for its broad range of services, dedication to sustainability, and responsible business practices. With clients on six continents, the company employs more than 160,000 devoted workers.
It is one of the greatest Indian IT firms for finding ideas and tying the pieces together to create a better and more daring future.
Fun fact- With a net capital of $1.65 trillion as of 2021, Wipro overtook HCL Technologies to claim a third place as the largest Indian IT services provider.
5. Redington India Ltd
It’s possible that many of the investors who read this post haven’t heard of this one. On this ranking of the top 10 Indian IT stocks, Redington India comes in at number five. In constant media and expert coverage, the ‘Big Four’ IT companies consistently steal the show.
Established in the year 1993, Redington India Limited has evolved from the very humble beginnings of one brand, and one product category into a major player in distribution and supply chain solutions. Their business partners with more than 235 multinational companies in the IT and mobility sectors, which serve 37 emerging regions.
Robotics, Big Data, Analytics, the Internet of Things (IoT), and 5G communications are the main technologies they concentrate on.
Fun fact- Investcorp acquired a 26% share in Redington International in 2008, which is then transferred to Redington India through its Gulf Opportunity Fund in 2012.
6. Tech Mahindra Ltd
Tech Mahindra represents the connected world, offering innovative and customer-centric information technology experiences, enabling Enterprises, Associates, and Society to Rise™. The business serves 941 international customers, including Fortune 500 organizations, and employs 125,700+ people in 90 countries.
It belongs to the reputed Mahindra Group and is one of the greatest Indian IT firms. The organization links its convergent, digital, design experiences, innovation platforms, and reusable assets across multiple technologies to deliver real business value and experiences to its stakeholders.
The Forbes Global Digital 100 list from 2018 and the Forbes Fab 50 list of Asian firms both place Tech Mahindra as the highest-ranked non-American company that is based out of Asia.
Fun fact- Following the Satyam crisis of 2008–2009, Tech Mahindra launched a proposal for Satyam Computer Services and beat out strong opponent Larsen & Toubro with an offer of ₹58.90 per share for a 31 percent ownership in the company.
7. L&T Infotech Ltd
The broad variety of IT services provided by Larsen & Toubro Infotech Ltd to clients in various industries includes application development, maintenance, outsourcing, enterprise solutions, infrastructure management services, testing, digital solutions, and platform-based solutions.
The company offers a wide range of IT services, including testing, analytics, artificial intelligence, and application development and maintenance (ADM).
Fun fact- The L&T infotech division’s interest extends beyond merely banking and finance. BFS accounts for 27% of its revenue, followed by insurance at 20%, pharmaceuticals at 9%, and retail and consumer services at 9%.
8. Mphasis Ltd
On this list of the top 10 Indian IT stocks, Mphasis Ltd is ranked eighth.
Since its incorporation in 1992, Mphasis Ltd. has provided services to prestigious clients all over the world, including six of the world’s top banks, eleven of the top fifteen mortgage lenders, and three of the world’s top insurance firms.
In sixteen countries, the corporation employs roughly 22,000 people. It ranks among the best software firms in India. The business specializes in offering cognitive and cloud services that use next-generation technologies to assist corporations in transforming their operations globally.
The largest private equity company in the world, Blackstone Private Equity, sold Hewlett Packard Enterprise 60.5 percent of Mphasis in 2008. Through this transaction, Blackstone completed its biggest acquisition in India and its most substantial technological investment.
Core reference architectures & tools from Mphasis are seamlessly combined with solid domain expertise in the Banking, Finance, and Insurance sectors.
Fun fact- Mphasis announced the execution of a binding contract to transfer a sizable piece of its domestic operations to Hinduja Global Solutions (HGS) on June 30, 2015.
9. Mindtree Ltd
This list of the top 10 Indian IT stocks places Mindtree at number nine. To achieve a competitive advantage, Mindtree Ltd. helps enterprises combine scale with agility.
The Company, a member of the Larsen & Toubro Group today, was founded as a digital company in 1999. To dismantle silos, simplify digital complexity, and speed up new projects, Mindtree’s extensive subject expertise is put to use in more than 350 engagements with enterprise clients. The organization makes it possible for IT to move at the speed of business by utilizing cutting-edge technologies and the benefits of continuous delivery.
As one of the top software businesses in India, it employs over 21,000 people across 15 nations.
Fun fact- A 60 percent share in Mindtree is under L&T’s hands. It’s worthwhile to read the stories of the hostile takeovers of L&T and Mindtree to gain some important business insights.
10. Hexaware Tech Ltd
Hexaware Tech Ltd. is an international leader in IT, BPO, and consulting services and one of the fastest-growing companies in these fields.
On this list of the top 10 Indian IT stocks, Hexaware Tech Ltd, comes in at number 10. They combine advanced technologies – Automate Everything™, Cloudify Everything™, and Transform Customer Experience™ to help enterprises become digitally engaged.
HTL’s expansion goal is further supported by enhancing its global delivery capabilities with 33 global offices and 18,000+ people. They have a staff that speaks more than two dozen languages, and their clients come from every global time zone.
Fun fact- Hexaware Technologies was established as a public limited company on November 20th, 1992 under the name “Aptech Information Systems Ltd.”
Our ranking of the top ten Indian IT stocks is now complete!
Note- Unless otherwise stated, all financial figures included in the piece are as of February 2022. The rankings are based on expansion projections, industry authority, and innovation potential.
Conclusion
The world’s image of India’s huge potential to lead in information technology has changed as a result of the massive growth of the Indian IT industry over the past 20 years. It would be pointless to continue bragging if we included more fascinating contributions to this list as we are only including the top ten.
The rest of the 21st century will unquestionably be a century driven by infotech and digital adaption and India will undoubtedly play a big role in influencing this transformation on a global scale.
If there is a company that you believe should be featured here that you think we overlooked, please feel free to comment!
Frequently Asked Questions (FAQs)
1. Why should I consider investing in Indian IT stocks?
Investing in Indian IT stocks offers several compelling reasons. Firstly, the Indian IT industry has shown significant progress and potential over the past decade, with a projected annual revenue potential of $300—$350 billion. Secondly, leading Indian IT companies are well-positioned to capitalize on emerging technologies such as Gen-AI, Cloud, Artificial Intelligence, and Cybersecurity, driving growth and innovation in the sector. Lastly, Indian IT stocks provide exposure to a dynamic and fast-growing market, offering opportunities for long-term growth and portfolio diversification.
2. What factors should I consider when evaluating Indian IT stocks for investment?
When evaluating Indian IT stocks for investment, it’s essential to consider factors such as revenue growth, profitability, market share, technological innovation, client base, competitive positioning, and macroeconomic trends. Additionally, factors specific to each company, such as industry vertical focus, geographic presence, and employee retention, should be carefully analyzed to make better investment decisions.
3. Are Indian IT stocks suitable for all types of investors?
While Indian IT stocks offer potential opportunities for investors, they may not be suitable for all types of investors due to their inherent risks and market volatility. Investors should assess their risk tolerance, investment objectives, and time horizon before considering exposure to IT stocks. Moreover, diversification across sectors and asset classes is essential to mitigate risks and achieve a well-balanced investment portfolio.
4. How do Indian IT companies contribute to the economy?
Indian IT companies play a significant role in driving economic growth and development in the country. With an approximate 8% contribution to India’s GDP, the IT industry creates jobs, fosters innovation, and attracts foreign investment. Moreover, Indian IT companies provide essential services to clients globally, supporting digital transformation initiatives across various industries and enhancing India’s global competitiveness.
5. What are some recent trends shaping the Indian IT industry?
Several recent trends are shaping the Indian IT industry, including the adoption of emerging technologies such as Gen-AI, Advanced Robotics, Cloud, Artificial Intelligence, Data Analytics, and Cybersecurity. Additionally, there is a growing focus on digital transformation, remote work solutions, and sustainability initiatives among Indian IT companies. Moreover, increasing competition, changing client preferences, and regulatory developments are influencing the strategic direction of Indian IT firms, driving innovation and differentiation in the market.
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