Best Performing IT Stocks in India to Watch for in 2023

The Indian IT sector has emerged as a lucrative opportunity for investors as online stock trading and investing continues to grow. It is expected to contribute as much as 10 percent or more to India’s GDP by the end of 2025.

The IT sector is driven by the skills and competencies of a cost-effective workforce that thrives on building and solving complex technical problems.

Moreover, India currently dominates the global IT services market, holding a 55 percent share of the worldwide service sourcing market ($200-250 billion) in 2019-20. Whereas a 38 percent market share of the BPM sourcing market.

This dominance in the global IT market provides a significant advantage to Indian IT companies, making them a compelling investment option for investors.

5 Top Performing IT Stocks in India in 2023

Here are the top 5 IT stocks that investors should look forward to in 2023.

1. Infosys Ltd

Infosys is India’s second-largest information technology service company. It provides services to various verticals right banking and finance to telecommunications as well as others like healthcare. The company operates not just in India but also across the world.

Infosys has delivered a solid financial performance with a 5-year average Return on Equity (ROE) of 31.79 percent and Compounded Profit Growth of 9 percent. Below is the Infosys share price, including other metrics:

●        Infosys Share Price as of 21st Sept 2023: ₹1,501.75

●        Market Cap: ₹5,78,661 Cr

●        P/E: 23

●        EPS: 57

2. Tata Consultancy Services Ltd

When it comes to the IT field, Tata Consultancy Services Ltd (TCS) dominates both the Indian and international markets.

IT services, business solutions, digital transformation, and IT products and platforms are just a few of the many offerings from TCS.

The company also provides services for cloud computing, machine learning, artificial intelligence and blockchain technology.

The majority revenue segment for TCS is the BFSI segment, which forms 40 percent of the total revenue pie. North America contributes to about 51.3 percent of the company’s revenue, followed by the UK and Europe ex-UK at 31.9 percent and India at 5.1 percent.

TCS has a proven track record with a 5-year average ROE of 37.2 percent. It also has a compounded profit growth of 8 percent and a net cash flow of about Rs 5,630 crore for FY22. Let’s look at some other important metrics of TCS share price:

●        TCS Share Price as of 21st Sept 2023: ₹3,585.30

●        Market Cap: Around ₹1,267,500 Cr

●        P/E: Around 29

●        EPS: Around 111

3. Tata Elxsi

Tata Elxsi is a subsidiary of the Tata Group and a key player in the IT industry. The company has seen tremendous growth in its stock price over the past three years, with an increase of about 900 percent.

The organization maintains an impressive ROE history, with a 37.23 percent rate. Over the past three years, it has achieved an average Profit Growth of 23.76 percent. Here are some other important metrics of Tata Elxsi share price and others:

●        Tata Elxsi share price as of 21st Sept 2023: ₹7,285.95

●        Market Cap: ₹44,582 Cr

●        P/E: 59

●        EPS: 114.60

4. Happiest Minds

Happiest Minds is an Indian IT company that has a market capitalisation of Rs 14,061 crore as of September 21, 2023. The company is ranked 4 in the IT services sector.

Happiest Minds focuses on pioneering technologies that are forward-looking such as artificial intelligence, blockchain, cloud computing, digital process automation, the Internet of Things, robotics and drones, security, virtual and augmented reality and other cutting-edge innovations.

With its impressive track record and robust technology infrastructure, Happiest Minds is one of the top IT stocks to watch out for. With an ROE of an average of 27 as of September 21, 2023, Happiest Minds has performed exceptionally well. Here are some other metrics to look for:

●        Happiest Minds Share Price as of 21st Sept 2023:  ₹922.25

●        Market Cap: ₹14,061 Cr

●        P/E: 59

●        EPS: 15

5. Wipro Ltd

Wipro Limited, headquartered in India, is a major global provider of IT services, management consulting, and other business processes. Wipro has grown at an average annual rate of 8 percent over the last five years.

At the same time, it has been able to generate an average annual return of 18 percent on the equity invested in the company over the last five years.

●        Wipro share price as of 21st Sept 2023: ₹428.15

●        Market Cap: ₹229,270 Cr

●        P/E: 20

●        EPS: 21

The company’s recent partnerships and acquisitions have further helped its stock price appreciate. Wipro has also focused on its core businesses and services to help it grow and remain competitive in the IT space.

This has helped Wipro capture a larger share of the market. Investors looking to invest in IT stocks should also focus on choosing the right online stock investing platform, such as Dhan, on leveraging its cutting-edge technology and tools.

Conclusion

The Indian IT sector presents a promising opportunity for investors looking to capitalise on the growth potential of this thriving industry. Online stock trading and investing platforms provide easy access to IT stocks, allowing investors to make informed investment decisions and take advantage of the best-performing IT stocks in India.

Moneycontrol Journalists are not involved in creation of this article.