TCS at 13.5x nears Wipro 13.1x amid Indian IT slowdown
Tata Consultancy Services (TCS) is now valued almost the same as Wipro, with TCS at 13.5 times and Wipro at 13.1 times one-year forward earnings, something that would have seemed impossible back in 2020, when TCS was way ahead.
The shift comes as the entire Indian IT sector faces a tough year, with demand dropping and disruptions in the Middle East shaking things up.
HCL Technologies at 15.4x leads valuations
HCL Technologies is holding up best, keeping its valuation higher at 15.4 times forward earnings, while Infosys trades at a similar multiple to TCS.
The Nifty IT index has fallen by 28% this year, wiping out 17.5 trillion rupees in market value from its December 2024 peak.
Big names like TCS, Infosys, and L&T Tech Services have all seen losses of over one-third so far this year, showing just how rough things are for tech giants right now.