A REPORT ON

“EQUITY RESEARCH ON IT SECTOR OF INDIA & AND ITS FUTURE

AHEAD”

By

Raj Tulsyan

(21BSP1943)

POSHWAY CONSULTANT & CO.

Unlock Your Vision

Submitted to:

FACULTY GUIDE COMPANY GUIDE

DR. ANIL MAHAJAN RAHUL KUMAR

 ACKNOWLEDGEMENT
I’d like to convey my heartfelt gratitude to the individuals listed below for their contributions to
this project’s study. Without their enthusiastic participation he preparartion of this report could
not have been accomplished within the given time frame.

First and foremost, I want to thank “Poshway Consultant & Co.” for presenting me with this
opportunity as a part of my Summer Internship Programme.

The programme has been great learning experience for me and would like to thank RAHUL
KUMAR( Business Development Associate) our company guide for assigning the project and
assisting me and teaching me about Equity analysis, investment and insurance and also guiding
me throughout my project. His insightful advice and constructive suggestion, encouragement and
time were all beneficial to me.

I also take this opportunity to thank Dr. Anil Mahajan(IBS Mumbai Faculty Member) for his
assistance and was always been there to support me and answer all of my queries related to
preparation of the project. He constantly supervise and provide required input to assist me steer
in the right direction. He has been a continuous motivator and an excellent mentor to take care of
the all requirements that would have been a hindrance

Lat but not least, I am grateful to ICFAI Business School in Mumbai for providing me with this
opportunity to do the Summer Internship Programme.
 ABSTRACT

As a part of my PGPM curricurlum, I am doing my internship at Poshway Consultants & Co.

My internship center on the study of the wealth structure, talent acquisition, digital
transformation, taxation & compliance support serving.

The title of my Project is “ Equity Research on IT Sector in India & Future Ahead”. The report
will include an overview of IT industry, growth and performance of IT sector companies with
high market capitalisation and mainly focus on the Fundamental analysis: Economic Analysis,
Industry Analysis and Porter’s Five Force Model and it also focuses on the calculaction of
Intrinsic value of shares and compared with Market Value to make investment decision.
 TABLE OF CONTENTS
CHAPTER NO CONTENT PAGE NO.
INTRODUCTION:

In today modern world, everyone wants to invest their money in financial market because of two
reasons: to get higher return and to save tax. In the pandemic around 44.7 lakh retail investor
account has been added as per SBI Report. And the share of individual investor in total turnover
on stock exchange has risen to 45% from 39% in March’20 as shown by NSE data.

If we see the Indian IT sector is one of the succeeding sectors of the Indian Economy that
showcase rapid development and growth. The Indian IT industry has established a strong brand
in international market. IT industry in India is divided into two categories: software and
information technology enabled services (ITES) which include Business Process Outsourcing
(BPO).

IT industry in India is high cost efficient in terms of skilled professional as in comparison with
developed countries. The shift to cloud services has enhance hyper scale data centre investment,
which are expected to reach more than US$ 200 billion per year by 2025. India is predicted to
have a considerable part in global market by 2025, with yearly investment expected to reach $5
billion.

According to Amazon Web Services (AWS) research findings, Inidan enterprise and public
sector organisation (that switched from on-premises data centres to loud infrastructure) can
participate to reduce their energy and carbon footprint by more than 80%.

The Indian mobile gaming market is estimated to reach US$ 7 billion in 2025, and the
government has set up Rs 53,108 crore (US$ 7.31 Billion) towards the IT and telecom industries
in Budget by 2021.

India’s software services export increased by 4% (excluding exports through commercial

presence) in FY 2021compared with FY 20 and are estimated at USD 133.7 billion during 2020-
21.

The IT industry accounted 8% of India’s GDP in 2020. According to STPI ( Software

Technology Park Of India), software exports by the IT companies connected to it, stood at Rs
1.20 lakh crore (US$ 16.29 billion) in the first quarter of FY22.
The paper mainly focus on the study of fundamental and technical analysis of selected
companies with high market value, analysing the growth and performance of companies and
suggesting investor wether to buy or sell the stock.

The investment decision is based on analysing securities with the help of two method:
Fundamental and Technical Analysis. It helps us to gain information about the company by
analysing economic, industry, demand and supply of market for the purpose of long term
investment.
History Of Indian IT Sector:

The voyage of Indian IT industry commence in 1974 when mainframe builder, Burroughs
provided export programmers to install system software for their US customer, Tata Consultancy
Services (TCS). However the situation was amplify by lack of support from local business and
the aggressive policy of the Indian government towards private companies. The Indian IT
industry was started by a Bombay-based company that started its business by providing
programmers to overseas IT companies.

Until 1984, IT was not considered an industry and was not subsidized. Several strategic reforms
were implemented in 1984, and IT was considered an industry. In the same year, the Government
of Inida introduced the New Computer Policy (NCP), a policy consisting of packages that reduce
import tariffs on hardware and software and politicians also recognized software exports as a
‘delicensed industry’. Delicensed industry is eligible for bank finances, free license permit and
can set up offshore units for foreign companies in India.

In the mid-1980s, the work moved to India and was mainly carried out by the local companies,
which was due to new technologies in software development and was more friendly to foreign
companies despite the new guideliens. The shift of work to India was responsible for the
development of Banglaore and the relative decline of other centre, especially Mumbai. Since the
1990s, value-added has increased and the advantage of domestic companies has been lost. This is
due to the evoloution of multinational enterprise response to the new policy.

Today, Indian IT companies include the Tata Consultancy Services (TCS), Wipro, Infosys, HCL,
and many more, which are recognised all over the world as providers of top class software
services.

Factors that are contributing to the growth of IT industry are:

 Low running cost and tax benefits

 Supportive government policies
 Technology skilled workforce availability
 Rapid adoption of IT technology in key sectors such as telecom and BFSI
 Growth in export demand
 Introducing new technologies such as cloud computing, artificial intelligence, and big
data etc.
 Special economic zone established by the government.
ROLE OF IT INDUSTRY

The role of IT industry plays an important part in different industries. It include managing data
such as text, voice and images. Technology advancement has changed everything around us. In
an organisation, the role of IT is to communicate between employees, business partner and
customer.The role of IT industry are different in respect to industries and are as follows:

Manufacturing Industry: In manufacturing industry IT help to automate the process. It is also

very beneficial in providing just-in-time insights and innovation. Nowadays, people are spending
more in emerging nation, but now centre of attention is much on innovation and excellene.
Today, the IT service provide custom solution to the business and provide necessary bandwith to
develop on a variety of business model, allowing business industry to improve.

Business: Communication, inventory management, and other aspect of information technology

help business. The use of IT can make the communication easier via email, video, text or social
media sites.

Education: Technology has changed the education system. As we have seen how the pandemic
has make us to go digital. IT offer engrossing audio and visual shows which help to keep the
scholars engaged and help us to understand bigger concepts. IT help students to keep trail of all
individual students and help scholars in their weak subject and supply some beyond regular time
and notes.
IMPACT OF IT

1) Political Impact: Technology is a source of power. In the political landscape, technology

plays a crucial role. They are widely used in electoral campaigns to regulate public
opinion and especially to engage young people in political life. Politician employ
technology in a variety of ways to impact the development of individuals in their various
fields. Twitter, Facebook and Youtube are important communication channels that can
instantly boost politician popularity.
2) Economic Impact: Increased production, capital accumulation, and intense competition
among firms have been all aided by technological advancement. Information technology
is an extensive transformation thatis infulening the design of many existing products and
services as well as the method of manufacturing and marketing almost .
The global economy is undergoing tremendous transformation. Internet, mobile
technology, social media and big data trends have sparked a wave of innovation that has
resulted in creation of thousands of new start-ups and job opportunities, as well as the
transformation of existing industries. Nowadys, we are currently witnessing major
technological changes that are reshaping society, business, and the economy. Every
industry is currently impacted by the rise of information technology trend such as Cloud,
Social Media, and Big Data, which are reshaping the global economy’s landscape. The
most significant effect of this emergence is the relocation of some jobs, which has altered
the map of the most requested jobs in the world wide market while siumlatneously
enabling and generating new job position profiles.
3) Social Impact: Before information technology, communication between two people took
days, if not months, to reach each other. But nowadays thanks to information technology,
communication with people in different region of the world has become a simple and
quick procedure which can be done in a variety of methods, including instant message,
phone conservation and video calls.
Information technology has altered people’s conceptions of reality, causing significant
confusion in various concepts and perceptions. Many conceptions have shifted in our
minds as a result of modern technology. Despite the fact that contemporary
communication has converted the world into tiny village where communication is easier,
it has also created a kind of alienation and divergence within the family.
‘Poor language proefficiency’ is another determential effrct of (IT) on society. A person’s
capacity to speak or perform in a foreign language is referred to as language competency.
The impact of rapid evolving imformation technology on society is a major concern. This
is due to the fact that current technology allows student to contact with their friends and
families in real time using apps like Whatsapp, WeChat. This make communication easy,
but on the other hand it will cause them to disregard appropriate language and word
spelling. And as the amount of information grows, Internet users may encounter
inaccurate information that lead to misinformation.
Role of Information Technology in Economic Development
India is a developing economy with highly educated workforce and a world class IT
industry. The sector benfitted from worldwide opportunities and took off after the
government funded some basic infrastructure and human capital development that was
roughly suitable for software development and IT-enabled services. During this time,
government had made a number of efforts to start designing and developing computer for
use in educational institution. The Bhabha Committee, established in 1963, stressed the
role of electronic and computer in India’s growth. In 1972, the government created a new
software scheme for the first time, allowing the import and export of software and
hardware for the first time, making a turning point in the development of IT industry.
Burroughs Corporation from the United States was Tata Consultancy Services (TCS) first
overseas client in 1974 (US).
During the post-reform period, the IT industry has experienced spectular growth. In
1994-95, the IT industry contributed 63 billion to India’s Gross Domestic Product (GDP),
rising to 1,267 billion in 2004-2005. In terms of scale, India’s IT industry has not only
advanced significantly during the last century, but has also grown at an extraordinary rate
since the turn of the century.