The PE ratio is a financial metric that is used to assess valuation of a company and also compare its current market price to its Earnings.
PE ratio below the industry average means that the stock may be trading below its intrinsic value relative to its peers, and may offer good opportunities.
Listed below are 3 fundamentally strong IT companies with PE Ratio less than Industry Average PE :
1. Nucleus Software Exports
- Stock PE 14.20 | Industry PE 50.98
Nucleus Software Exports Limited is an Indian IT company specializing in banking and financial software solutions. Founded in 1986 and headquartered in Noida, India, the company provides innovative lending and transaction banking products to over 200 financial institutions across 50+ countries. Its flagship products include FinnOne Neo®, a digital lending platform, FinnAxia®, a global transaction banking solution, and PaySe®, a digital payment platform.
Financial Highlights
The company reported a 2.37 percent YoY increase in revenue from Rs. 216.13 Crore in Q3FY24 to Rs. 221.27 Crore in Q3FY25. Their Net profit saw a decrease of 15.34 percent YoY from Rs. 41.31 Crore to Rs. 34.97 Crore for the same period.
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2. Cyient
- Stock PE 25.70 | Industry PE 50.98
Cyient Limited, established in 1991 and headquartered in Hyderabad, India, is a global engineering and technology solutions company. The company specializes in providing services such as engineering design, manufacturing, data analytics, and network operations to a diverse range of industries, including aerospace and defense, automotive, communications, energy, healthcare, mining, rail transportation, semiconductor, and utilities.
Financial Highlights
The company reported a 3.78 percent YoY increase in revenue from Rs. 1840.20 Crore in Q3FY24 to Rs. 1909.80 Crore in Q3FY25. Their Net profit saw a decrease of 16.64 percent YoY from Rs. 153.20 Crore to Rs. 127.70 Crore for the same period.
3. Sonata Software
- Stock PE 26.97 | Industry PE 50.98
Sonata Software is an Indian IT services company headquartered in Bangalore, Karnataka, specializing in digital transformation and modernization solutions. Established in 1986, the company offers a range of services including cloud and data modernization, Microsoft Dynamics 365 consulting, and managed services across various industries. Sonata’s proprietary Platformation™ framework assists businesses in adopting platform-based models to drive digital transformation.
Financial Highlights
The company reported a 13.98 percent YoY increase in revenue from Rs. 2512.86 Crore in Q3FY24 to Rs. 2,864.28 Crore in Q3FY25. Their Net profit saw a turnaround from a loss of Rs. 46.16 Crore to Rs. 105.01 Crore Profit.
Written By Abhishek Das
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