The IT sector holds immense importance in the Indian industry and plays a vital role in generating export revenue for the country. It is not only one of the largest contributors to India’s GDP, accounting for around 7.7%, but it is also projected to increase its contribution to about 10% by the year 2025. Moreover, India has established itself as the largest provider of IT services globally.
India’s competitive advantage in the IT sector stems from its abundance of highly skilled and cost-effective workforce. This advantage has propelled India to become the leading destination for sourcing IT services worldwide. In fact, India serves approximately 55% of the global service-sourcing market, which is estimated to be valued at around USD 185-190 billion. Additionally, India holds a significant market share of 38% in the BPM sourcing market.
The Nifty IT index is in a consolidation phase and is trading in a range since May 2022. Meanwhile, the top IT companies like TCS, Infosys, Tech Mahindra, and HCL tech have not performed well during the year. Today Nifty IT Index is trading around 28888 levels, 137 points down from its previous day’s closing. During the last three months, Index has generated a return of only 4% whereas just 5.6% in the last one year which signifies IT sector has not started performing yet and the investors should be ready with a watch list of stocks to allocate the funds once it starts giving breakout from the range.
In this article, we have compiled the technology companies which are trading under Rs 200 in Indian market.
| Company Name | CMP Rs | Mar Cap (Rs Cr) | Price to Book Value (Times) | FY23 Net Profit (Rs Cr) | FY23 EPS
(Times) |
FY23 ROE % | 3-mth Return % | 1-Yr Return % |
| Blue Cloud Softech | 61.0 | 354.2 | 28.7 | 0.7 | 0.1 | 5.6 | 37.4 | 404.6 |
| Apollo Micro Systems | 47.7 | 991.3 | 2.6 | 19.1 | 0.9 | 6.0 | 64.9 | 290.8 |
| One Point One Solutions | 22.0 | 429.0 | 7.5 | 8.8 | 0.5 | 17.3 | 18.2 | 117.2 |
| Virinchi | 51.3 | 431.8 | 1.1 | 12.7 | 1.5 | 3.3 | 50.8 | 90.3 |
| Moschip Technologies | 83.4 | 1,389.2 | 12.3 | 6.2 | 0.4 | 6.9 | 25.2 | 77.8 |
| Mindteck (India) | 160.2 | 404.6 | 2.1 | 20.8 | 8.2 | 11.4 | 43.7 | 58.5 |
| Softtech Engineering | 143.9 | 146.1 | 1.4 | 3.6 | 3.9 | 3.8 | -9.3 | 57.7 |
| E2E Networks | 166.0 | 240.2 | 4.9 | 9.9 | 6.9 | 22.6 | -2.4 | 50.7 |
| First Source Solutions | 129.6 | 9,100.5 | 2.7 | 513.7 | 7.3 | 16.1 | 18.6 | 35.7 |
| Intense Technologies | 73.5 | 172.4 | 1.5 | 13.8 | 5.9 | 13.2 | 33.3 | 31.7 |
| Xchanging Solutions | 78.8 | 877.8 | 1.3 | 44.9 | 4.0 | 7.0 | 38.2 | 28.5 |
| Cybertech Systems | 150.8 | 429.4 | 2.7 | 21.7 | 7.6 | 14.5 | 65.8 | 22.1 |
| Trigyn Technology | 106.6 | 328.1 | 0.5 | 34.7 | 11.3 | 5.4 | 20.3 | 17.6 |
| Infibeam Avenues | 15.6 | 4,166.6 | 1.3 | 136.3 | 0.5 | 4.5 | 11.8 | 14.7 |
| Quick Heal Technologies | 165.6 | 878.9 | 2.1 | 6.4 | 1.2 | 1.2 | 16.8 | 8.7 |
| XT Global Infotainment | 40.3 | 535.9 | 3.4 | 15.8 | 1.2 | 11.0 | 78.7 | -0.5 |
| Black Box | 130.7 | 2,194.5 | 7.4 | 23.7 | 1.4 | 25.5 | 42.6 | -5.0 |
| Cressanda Solutions | 28.0 | 1,184.8 | 12.3 | 6.1 | 0.1 | 7.4 | 17.6 | -5.2 |
| Softsol India | 145.1 | 244.1 | 1.7 | 0.1 | 0.1 | 0.1 | -12.2 | -5.5 |
| 3i Infotech | 36.3 | 611.7 | 1.0 | 1.4 | 0.1 | 0.5 | 24.3 | -6.3 |
| Intrasoft Technologies | 144.0 | 212.1 | 1.2 | 8.4 | 5.7 | 4.9 | 37.1 | -6.6 |
| Brightcom Group | 33.3 | 6,723.7 | 1.0 | 1,371.0 | 6.8 | 22.3 | 84.4 | -9.7 |
| GSS Infotech | 196.8 | 333.2 | 1.6 | 14.9 | 8.8 | 7.1 | -2.3 | -14.8 |
| Allied Digital | 104.2 | 572.0 | 1.1 | 6.9 | 1.3 | 10.1 | 20.4 | -21.4 |
| Vakrangee | 16.2 | 1,712.1 | 13.9 | 1.0 | 0.0 | 0.1 | 9.6 | -23.5 |
| Varanium Cloud | 147.7 | 593.6 | 4.2 | 82.5 | 20.5 | 105.6 | -13.0 | NA |
| Tracxn Technologies | 79.8 | 800.4 | 13.4 | 33.1 | 3.3 | 71.3 | 21.1 | NA |
| All E Tech | 117.0 | 236.3 | 2.4 | 12.1 | 6.0 | 16.0 | 19.3 | NA |
The broader indexes such as Sensex, Nifty50, and Nifty Bank are currently trading around at their all-time highs. While the Indian market has outperformed foreign markets. However, when we examine the Nifty IT Index, we can observe that it is still within range and has not yet begun to show strong performance. So, during this time, investors must find companies that have a great potential to perform better and can participate in the bull run rally considering their financial health and stability, customer base, revenue growth, past track records, and so on. Investors must keep these stocks on their radar.
Published on: Jun 22, 2023, 2:47 PM IST
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