Best IT stocks to buy in 2024 - SMC Global Securities

Best IT stocks to buy in 2024 – SMC Global Securities

From Hyderabad’s Cyberabad to Bangalore’s Silicon Valley and beyond, India’s IT titans are paving the way in transforming this sector worldwide. Through innovative software development, strong infrastructure support, and revolutionary digital solutions, these businesses have solidified their reputations as industry leaders in information technology. With the wave of this new year, you should put your money in the best-performing socks.

What are IT stocks?

IT stocks in India are companies that offer technology-related services and products, such as digital solutions, software development, hardware manufacturing, and IT consultancy. To put it more simply, they assist organisations and businesses with various areas of their operations by using softwares, computers, and other technologies.

Top 10 IT Stocks to Invest in 2024

Here is a list of the top 10 IT stocks in 2024 that you should consider investing in.

  1. Tata Consultancy Services

  2. Infosys

  3. HCL Technologies

  4. Persistent Systems Ltd

  5. Tata Elxsi

  6. Tech Mahindra

  7. Kellton Tech Solutions

  8. Subex

  9. Happiest Mind

  10. Saksoft

WHY SMC

  • 20 Lac+ unique clients
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Overview of Best IT Stocks to Invest in India

 

Tata Consultancy Services

TCS is the world’s most valued IT service brand, one of the largest Indian IT titans by market value, and the leading Big Tech (India) company. In the last few months, brokers have upgraded the stock; it is debt-free and has witnessed a spike in FPI investment. Conversely, the profit margin is under pressure.

Infosys

Infosys, an international leader in next-gen digital services and consultancy, has shown extraordinary durability and growth, continually beating industry benchmarks. Additionally, the stock demonstrated a strong breakthrough above the first barrier and has received brokerage upgrades.

HCL Technologies

HCL Technologies has increased its market share and produced strong financial outcomes by emphasising innovation and digital evolution. Over the last two years, the book value per share has likewise increased. Brokerages have upgraded the stock, showing a solid breakout over the first barrier.

Persistent Systems Ltd

Persistent Systems looks for opportunities for expansion in the digital transformation service sector, but the company’s ability to quickly adjust to changing client demands and industry trends could prove important to its success.

Tata Elxsi

Tata Elxsi has shown outstanding performance across many domains. With a focus on engineering and product designing services, the company has expanded its global footprint to serve a variety of industries, including media and entertainment, telecommunications, automotive, and healthcare.

Tech Mahindra

Tech Mahindra is a major participant in India’s booming IT sector and on an international scale, owing to its history of providing excellent solutions and upholding strong financial foundations.

Kellton Tech Solutions

Providing full-service IT solutions, strategic technology consulting, and product development services in the Web, ERP-BPM, SMAC (Social, Mobile, Analytics, Cloud), and IoT domains, Kellton Tech is a competent software development company.

Subex

Subex is a telco AI company creating seamless connections for over 75% of the world’s top 50 telecoms. The company holds no debt and is seeing increased attention from FPIs. Apart from financial pressures, a decrease in ROE and RoCE over the previous two years is cause for concern.

Happiest Mind

Happiest Minds has attracted much attention for its specialisation in cloud computing, digital transformation services, cybersecurity, and AI-driven solutions since its initial public offering (IPO) in 2020.

A decline in MF holding and a rise in promoter pledges have put pressure on the stock. The stock is below average throughout the short, medium, and long term. But remember, strong financials, nevertheless, are a benefit. Invest smart!

Saksoft

Saksoft has offered omnichannel accessibility to enterprise applications and data-driven insights to clients worldwide through augmented analytics. As of 31 January 2024 IST, Saksoft Ltd.’s share price is ₹310.65 (NSE) and ₹311.40 (BSE). The company has provided a 105.49% return over the previous three years.

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account


Latest Performance of Top 10 IT Stocks

Company Name CMP Rs. Mar Cap Rs.Cr. 1Yr return % ROCE % CMP / BV Debt / Eq ROE % EPS 12M Rs. P/E % Div Yld %
Tata Consultancy Services  4,085.00 1411994 17.59 58.7 13.85 0.0 46.9  122.62 32.04 1.16
Infosys 1695.00 679854 8.41 44.36 8.65 0.00 31.8  58.77 28.7 1.97
HCL Technologies 1615.00 424477 42.63 27.62 6.4 0.08 23.0 57.85 28.07 3.30
Persistent Systems Ltd 8,639.55 58540 79.46 29.29 515.45 0.125 25.3  103.52 64.56 0.45
Tata Elxsi 7,788.10 51756 16.41 22.24 22.78 0.11 41.1 127.98 60.33 0.77
Tech Mahindra 1315.00 132286 34.39 22.14 4.89 0.1 17.6 28.87 46.84 2.41
Kellton Tech Solutions 102.00 980.53 83.14 14.3 2.41 0.37 16.5 -13.26 -7.75 0.00
Subsex 41.15 2082.81 27.51 -9.35  4.22 0.07 -9.56 -1.46 -30.63 0.00
Happiest Mind 861.80 13195.37 3.37% 27.4 9.58` 0.39 28.9 16.22 56.53 0.62
Saksoft 311.55 3339.88 115.98 27.50 7.35 0.03 22.7 9.01 34.7 0.21

Overview of the IT Industry in Indian Market

The IT industry has revolutionised numerous parts of modern life, especially how we work, interact, and access information. It is a major force behind innovation and economic progress. In FY22, the IT sector contributed 7.4% of India’s GDP; by 2025, it is anticipated to rise over 10% contributing to India’s GDP by 2025.15 M.

Advantages and Risks Associated with Investing in IT Stocks

 

Major advantages that come with investing in IT stocks includes:

  • High growth sector
  • More robust to economic downturns.
  • It is a futuristic sector.

Indian IT stocks have more growth potential than equities in other sectors, but they also carry a higher risk and volatility like FMCG or pharma. But before making an investment, an investor must conduct independent research and/or speak with a financial counsellor.

Why should you invest in IT stocks in India?

IT stocks provide a dynamic potential for growth in a constantly changing industry because of their scalability, constant innovation, and strong financials. Investment opportunities in IT stocks provide investors access to companies which are leading the way in technological innovation and give them a competitive edge.

How to start Investing in IT Stocks?

SMC is your strategic partner guiding you through the complexities of the IT industry and transforming your search for financial success into an exciting and fulfilling journey.

Start your journey in 4 easy steps with us:

  1. Go the official website of SMCtradeonline or simply download the SMC-  ACE app
  2. Open a Free Demat Account
  3. Start investing

WHY SMC

  • 20 Lac+ unique clients
  • 33+ Years of Serving
  • Advance Technical Analysis
  • Free Demat Account



Conclusion
Whether you’re a tech enthusiast or an investor seeking growth opportunities and thrilled by the limitless potential, India’s best IT stocks captivate you with promises of innovation, resiliency, and extreme potential.

All Information Verified by SMC Global Securities.

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