This document summarizes a study on the equity analysis of the Indian IT sector from 2013. The study analyzed the performance of 7 major IT companies over the previous 5 years using financial ratios and the EIC (Economy, Industry, Company) approach. Key findings include that the IT sector saw positive growth until 2008 but declined in 2009 due to recession. Infosys had the best current ratio while HCL Technologies was overvalued based on its high P/E ratio in 2009. The conclusion is that the Indian IT sector saw recovery after the recession and is expected to see continued good growth, making it an attractive industry for foreign investment. The document recommends investing for the long term, doing thorough research, and monitoring key financial ratios when

1. A study on Equity Analysis of
Indian IT sector (2013)
Presented by:Ramawatar Tawaniya

2. Introduction
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Equity analysis is researching and analyzing equities, or stocks.
The methods used to analyze securities and market investment decision
falls into two very broad categories:
Technical Analysis
Fundamental Analysis
It include EIC approach analysis- Economy, Industry and
Company analysis.
(1) IT- Software, (2) ITeS Business Process Outsourcing
(BPO)
( 3) IT- Hardware and peripherals, (4) IT- Education
7 IT companies are selected TCS, Wipro, Infosys, Satyam computer
services, HCL Technologies, Tech Mahindra, L&T InfoTech.

3. Statement of problem:
Study analyse the performance of the
seven IT companies for the last five years
and comparison is made for their
performance in different years.
 Study also analyse the performance of the
five FMCG’S companies for the last five
years and comparison is made for their
performance in different years.
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4. Objectives of the study:
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The primary objective of equity research is to
analyze the earnings persistence.
To study the growth of IT sector.
To analyze which IT company gives best
return to the shareholders.
To find out potentiality of selected company
through current ratios.
To analyze fluctuation of equity market over IT
companies.
Comparative analysis of 7 tough IT
competitors.

5. Methodology of the study
Research Method:
 The descriptive method is used for this study.
Sample Size:
 For this study seven IT companies are selected.
Sources of data:
 Secondary data from various websites, newspapers, magazines.
Statistical Tools Used for Analysis:
 EIC approach and financial ratios- debt to equity, current
ratio, ROE, EPS ratio.

6. Findings:
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Seven companies were performing well till 2008 with a
positive trend in the earnings per share. Increasing
EPS indicate good earnings.
The P/E ratio of all the selected companies is
increasing year after year.
Infosys is found with more current ratio as compare to
other companies.
There was a downward trend in 2009 in most of
companies because of recession.
EPS of Satyam company goes in negative, the reason
behind was it because of scandal in the company in
the year 2009.
HCL Technologies has the highest P/E ratio in 2009
which indicates that it is overvalued.

7. Conclusion:
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Hence from the study it can be concluded
that IT sector is booming after recession
and there will be a good growth in next
upcoming few years. India has become a
hot destination for MNC’s to Invest. Inspite
of being a tough year for all the companies
across globe, Indian market has given good
performance as compare to other
companies in the world.

8. Suggestions:
Investing in Wipro for long time could be a good
option because they are spreading their business.
 An investor must take research about stock of
company and its previous data before investing.
 Current ratio must be improved by company and it
should be in ideal ratio 2:1.
 The investor must focus on its key financial ratios
such as earnings per share, price-earnings
ratio, debt-equity ratio, dividends per share etc.
 There are various factors which effects on stock
market, so an investor must be aware of all those.
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9. Thank you 