{"id":7510,"date":"2023-09-07T13:02:00","date_gmt":"2023-09-07T07:32:00","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=7510"},"modified":"2023-09-07T13:03:16","modified_gmt":"2023-09-07T07:33:16","slug":"filter-it-stocks-using-tickertape-screener","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/","title":{"rendered":"How to Filter Best IT Stocks?"},"content":{"rendered":"\n<p>One of the most important sectors in India is the IT sector. It is one of the largest contributors to the country\u2019s export revenue. Besides this, India is the largest IT services provider globally. When looking into investments, several publicly listed IT companies are doing good in terms of profit. Let\u2019s understand IT stocks in detail, how to evaluate them, how to find the best IT stocks using Tickertape and a list of top IT stocks on NIfty 50.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#What-are-IT-stocks\" title=\"What are IT stocks?&nbsp;\">What are IT stocks?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#How-do-you-evaluate-IT-stocks\" title=\"How do you evaluate IT stocks?\">How do you evaluate IT stocks?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#Gross-profit-margins\" title=\"Gross profit margins\">Gross profit margins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#Exports\" title=\"Exports\">Exports<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#Valuations\" title=\"Valuations\">Valuations<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#How-to-find-IT-stocks-using-Tickertapes-stock-screener\" title=\"How to find IT stocks using Tickertape\u2019s stock screener?&nbsp;\">How to find IT stocks using Tickertape\u2019s stock screener?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#IT-sector-stocks-listed-on-Nifty-50\" title=\"IT sector stocks listed on Nifty 50\">IT sector stocks listed on Nifty 50<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/filter-it-stocks-using-tickertape-screener\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-are-IT-stocks\"><\/span>What are IT stocks?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IT stocks are the listed companies from the information technology spectrum. These companies sell\/outsource services, manufacture technological hardware, provide cloud-based products related to information technology and do much more.<\/p>\n\n\n\n<p>There are micro sectors within the information technology space, namely, fintech, SAAS companies, IoT providers, and <a href=\"https:\/\/www.tickertape.in\/blog\/how-ai-can-help-make-good-investment-decisions\/\">artificial intelligence<\/a>. Regardless of the sector, the ultimate aim of IT firms is to bring digital transformation across the globe, embracing technology.&nbsp;<\/p>\n\n\n\n<p>On <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape Stock Screener<\/a>, IT stocks are categorised into six categories: Communication &amp; Networking, Electronic Equipment, Technology Hardware, IT Services &amp; Consulting, Outsourced services, and Software Services. Now, let\u2019s understand how to evaluate IT sector stocks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-do-you-evaluate-IT-stocks\"><\/span>How do you evaluate IT stocks?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Apart from the company\u2019s fundamentals, the following are some metrics that you can use to draw a line of distinction among IT stocks:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Gross-profit-margins\"><\/span><strong>Gross profit margins<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Since tech companies vary in size and have different business models, it\u2019s not justified to compare them to gross profits alone. Because TCS can post a higher gross profit than Mindtree, the actual picture will be revealed by comparing gross profit margins. Companies with rising gross profit margins are worth investing in as they carry a higher growth potential.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Exports\"><\/span><strong>Exports<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>IT companies in India are exporting their services and products to clients worldwide and earning in foreign currencies. Earnings from abroad are substantial because the Rupee has depreciated significantly over the years, and these firms benefit from currency conversion. Thus, IT stocks, with a majority of their earnings coming from exports, are valuable picks.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Valuations\"><\/span><strong>Valuations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>IT stocks have sky-high valuations; irrespective of the ratios used, they\u2019ll always appear to be costly. Investors can find valuations of IT stocks using the price-earning ratio and price-to-book ratio. In both the ratios, the thumbs rule says- the lower, the better.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-find-IT-stocks-using-Tickertapes-stock-screener\"><\/span>How to find IT stocks using Tickertape\u2019s stock screener?&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tickertape <a href=\"https:\/\/www.tickertape.in\/blog\/tickertape-stock-screener-to-discover-largecap-stocks\/\">Stock Screener<\/a> has over 200 <a href=\"https:\/\/www.tickertape.in\/blog\/14-new-filters-on-tickertape-stock-screener\/\">filters<\/a>, which helps you filter and pick the best stock in minutes. Here\u2019s how to use the Stock Screener:<\/p>\n\n\n\n<p><strong>Step 1:<\/strong> Launch the <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Stock Screener<\/a><\/p>\n\n\n\n<p><strong>Step 2:<\/strong> Under the \u201cSectors\u201d option in the filter panel on the left-hand side, select \u201cInformation Technology\u201d.<\/p>\n\n\n\n<p><strong>Step 3:<\/strong> To narrow your search, select from the 6 sub-sectors of information technology from the drop-down.<\/p>\n\n\n\n<p><strong>Step 4: <\/strong>Click on the \u2018Add Filter\u2019 button to select key parameters that can help you analyse a stock<\/p>\n\n\n\n<p><strong>Step 5:<\/strong> Once you have added all your desired filters, go to each one in the Filter Panel and adjust the range as per your requirements.<\/p>\n\n\n\n<p><strong>Step 6:<\/strong> That\u2019s it. You can see all the IT stocks meeting your filter criteria.<\/p>\n\n\n\n<p><strong>Step 7:<\/strong> If you want to save the screen for the future, you can simply click \u201cSave\u201d at the top of the filter panel.<\/p>\n\n\n\n<p>You can also use different Stock Universes to shorten your list of research stocks. Let\u2019s have a look at an example.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IT-sector-stocks-listed-on-Nifty-50\"><\/span>IT sector stocks listed on Nifty 50<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Name<\/strong><\/td><td><strong>Sub-Sector<\/strong><\/td><td><strong>Market Cap (Rs. in cr.)<\/strong><\/td><td><strong>Close Price (Rs.)<\/strong><\/td><td><strong>PE Ratio<\/strong><\/td><td><strong>Debt to <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">Equity<\/a> (%)<\/strong><\/td><td><strong>5Y Avg <a href=\"https:\/\/www.tickertape.in\/blog\/return-on-investment\/\">Return on Investment<\/a> (%)<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/tata-consultancy-services-TCS?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Tata Consultancy Services Ltd<\/strong><\/a><\/td><td>IT Services &amp; Consulting<\/td><td>12,55,018.03<\/td><td>3,429.90<\/td><td>29.78<\/td><td>8.43<\/td><td>37.86<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/infosys-INFY?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Infosys Ltd<\/strong><\/a><\/td><td>IT Services &amp; Consulting<\/td><td>6,11,460.34<\/td><td>1,477.45<\/td><td>25.38<\/td><td>10.95<\/td><td>25.55<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/hcl-technologies-HCLT?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>HCL Technologies Ltd<\/strong><\/a><\/td><td>IT Services &amp; Consulting<\/td><td>3,34,602.94<\/td><td>1,235.85<\/td><td>22.53<\/td><td>7.33<\/td><td>20.26<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/wipro-WIPR?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Wipro Ltd<\/strong><\/a><\/td><td>IT Services &amp; Consulting<\/td><td>2,23,776.43<\/td><td>429.30<\/td><td>19.72<\/td><td>22.47<\/td><td>15.25<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/larsen-and-toubro-infotech-LRTI?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>LTIMindtree Ltd<\/strong><\/a><\/td><td>IT Services &amp; Consulting<\/td><td>1,59,989.11<\/td><td>5,407.25<\/td><td>36.29<\/td><td>2.13<\/td><td>27.26<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/stocks\/tech-mahindra-TEML?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Tech Mahindra Ltd<\/strong><\/a><\/td><td>IT Services &amp; Consulting<\/td><td>1,21,765.50<\/td><td>1,248.95<\/td><td>25.20<\/td><td>9.65<\/td><td>17.56<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Note: <\/strong>The IT sector stocks listed on Nifty 50 in India are derived using the <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=blog&amp;utm_medium=article\">Tickertape Stock Screener<\/a>. The data is as of 7th September 2023, and the parameters are as follows.\u00a0<\/p>\n\n\n\n<ul><li><strong>Stock Universe:&nbsp;<\/strong><\/li><li><strong>Sector &gt; Information Technology &gt; All<\/strong><\/li><li><strong>Market Cap &#8211; <\/strong>Sort from highest to lowest<\/li><li><strong>5-yr Average Return on Investment<\/strong><\/li><li><strong>Debt to Equity<\/strong><\/li><\/ul>\n\n\n\n<p>You can choose over 200 filters and pre-built screens and create your custom filters and universe. Further, there are pre-built screens which are goals and parameters specific like \u2018Get, Set, Fly!\u2019 lists low-expense ETFs for short to medium-term investments to fund your trips, while \u2018Momentum Masters\u2019 lists companies that are experiencing strong <a href=\"https:\/\/www.tickertape.in\/blog\/foray-into-companies-experiencing-price-momentum-backed-by-quality-growth\/\">price momentum<\/a>.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The IT sector is the home of many exciting budding companies like Tanla Platforms and Mphasis, as well as industry giants like TCS and Infosys. The sector as a whole has a lot of potential, and stocks from the IT sector can occupy the driving seat to guide your portfolios to record highs. That said, there are certain risks which, as an investor, you should understand. From skyrocketing valuations to regulatory scrutiny, the tech space is full of challenges as well.&nbsp;<\/p>\n\n\n\n<p>Thus, before investing in IT stocks, ensure you understand the companies in the sector, their business models, industry-specific risks, and opportunities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>What are the best midcap IT stocks for the long term?\u00a0<\/strong><\/p>\n\n\n\n<p>Here are the five best midcap IT stocks for the long term in India:<\/p>\n\n\n\n<ul><li>Persistent Systems Ltd<\/li><li>Tata Elxsi Ltd<\/li><li>Coforge Ltd<\/li><li>L&amp;T Technology Services Ltd<\/li><li>Mphasis Ltd<\/li><li>Honeywell Automation India Ltd<\/li><li>Oracle Financial Services Software Ltd<\/li><\/ul>\n\n\n\n<p><strong>Note: <\/strong>These are derived using <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=blog&amp;utm_medium=article\">Tickertape Stock Screener<\/a>, and the data is as of 7th September 2023. The parameters used are as follows. You can sort the list using your preferred parameters as well.\u00a0<\/p>\n\n\n\n<ul><li><strong>Stock Universe: <\/strong>Nifty Midcap 100<\/li><li><strong>Sector > Information Technology<\/strong><\/li><li><strong>5-yr <a href=\"https:\/\/www.tickertape.in\/blog\/compound-annual-growth-rate\/\">CAGR<\/a>:<\/strong> Mid to High &#8211; Sorted from high to low (Positive)<\/li><li><strong>Net Income: <\/strong>Positive &#8211; Set the lower limit to Zero<\/li><li><strong>Debt to Equity:<\/strong> Set to Low<\/li><\/ul>\n\n\n\n<p><strong>Is it worth investing in IT sector stocks in India?\u00a0<\/strong><\/p>\n\n\n\n<p>Most of the IT sector companies have a global presence and contribute heavily to the country\u2019s export revenue. IT stocks have a dominant presence in the Indian <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/\">stock market<\/a> and carry the potential to become the most rewarding sector. However, irrespective of the sector you are interested in, it is important to consider your investment objectives before investing. Talk to your financial advisor and make a choice.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When looking into investments, several publicly listed IT companies are doing good in terms of profit. In this article, let\u2019s look at how to evaluate and find the best IT sector stocks.<\/p>\n","protected":false},"author":90,"featured_media":6860,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1721,1749],"tags":[],"acf":[],"modified_by":"Anjali Chourasiya","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/02\/TT-9-Feb-How-to-discover-debt-free-1-scaled.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7510"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=7510"}],"version-history":[{"count":10,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7510\/revisions"}],"predecessor-version":[{"id":13975,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/7510\/revisions\/13975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/6860"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=7510"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=7510"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=7510"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}