Equity Analysis on IT Sector Stocks

Equity Analysis on IT Sector Stocks

Mahek Korat[1] and Dr. Vijay Gondaliya[2]

ABSTRACT:

The investment in share market is highly rewarding but highly risky. The concept of analysis comes into picture when decision must be made on choosing a particular company's shares for investment. Analysis includes fundamental analysis. Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental, and other relevant factors and statistics that will affect the basic supply and demand. This paper examined fundamental analysis of IT sector of the selected companies from the Information Technology sector, since IT sector is one of the most upcoming sectors in the Indian Market Secondary Data of last 5 year (2019-2023). The sample of the stocks for the purpose of collecting secondary data has been selected based on Random Sampling. For analysis the monthly share prices of the last 5 financial years  is collected for ten leading IT companies. for the study through fundamental analysis is carried out by tools like Economic analysis, Industrial analysis and Company Analysis Key ratios include ROA, ROI, ROE, EPS, DPS, dividend payout ratio, dividend yield, and P/E ratio. The stocks are chosen in an unbiased manner and each stock is chosen independent of the other stocks chosen. The major findings are all IT sector companies performing very well and their fundamentals are very strong based on P/E ratio, EPS and Payout ratio. It is recommended to the investor that to invest in IT sector company for long term will be benefited.

Key Words: IT Sector, Fundamental Analysis, Investment, Equity, Market

[1] Student, B. V. Patel Institute of Management, Uka Tarsadia University
[2] Associate Professor, B. V. Patel Institute of Management, Uka Tarsadia University