High Growth Tech Stocks in India to Watch This September 2024

The Indian stock market has been a roller coaster ride for investors over the past year. While it has seen a modest drop of 1.2% in the past seven days, the overall growth trajectory has been impressive, with a 38% increase over the past year. This dynamic environment has made it crucial for investors to identify high-growth tech stocks that can offer substantial returns. The tech sector in India is expected to grow its earnings by 17% annually, making it a fertile ground for investment opportunities. In this article, we will delve into some of the most promising tech stocks in India, including Coforge Limited, Firstsource Solutions Limited, and PVR Inox Limited, among others.

Coforge Limited stands out as a major player in the Indian IT and IT-enabled services market. With a market cap of ₹453.98 billion, the company has established itself as a leader in providing software solutions. Coforge generates revenue primarily from its software solutions segment, which is projected to grow at an annual rate of 14.4%. The company’s operations span multiple regions, including India, the Americas, Europe, the Middle East and Africa, and the Asia Pacific. This global footprint not only diversifies its revenue streams but also positions it to capitalize on emerging market trends. Recent initiatives, such as partnering with Salesforce, showcase Coforge’s commitment to innovation and sustainability, particularly in AI and CRM solutions. The company’s earnings are expected to increase by 22.5% annually, outpacing the broader Indian market’s growth rate.

Firstsource Solutions Limited is another noteworthy contender in the tech space. This tech-enabled business process company boasts a market cap of ₹226.81 billion. Firstsource generates revenue from four main segments: banking and financial services, healthcare, communication, media and technology, and diverse industries. The company operates internationally and has shown robust growth in the past year, with revenue increasing from ₹15.31 billion to ₹17.93 billion. The company’s net income has also seen an uptick, rising to ₹1.35 billion from ₹1.26 billion. One of the key drivers of this growth is the launch of Firstsource Relai, an AI-led platform suite designed to drive digital transformation in sectors such as healthtech and fintech. This focus on innovation and digital transformation positions Firstsource Solutions as a high-growth tech stock worth watching.

PVR Inox Limited, primarily known for its theatrical exhibition business, is also making waves in the tech sector. With a market cap of ₹157.12 billion, the company generates revenue mainly from movie exhibition but also engages in movie distribution and production. PVR Inox has been aggressively expanding, adding 245 screens in 27 cities since its merger. Despite reporting a net loss of ₹1.79 billion for Q1 2024, the company’s revenue is projected to grow at an annual rate of 12.1%. More impressively, PVR Inox’s earnings are expected to increase by 60.6% per year over the next three years. This aggressive expansion and the focus on diversifying revenue streams make PVR Inox a compelling tech stock to consider.

Another promising tech stock is Kaynes Technology India Limited. This company operates as an end-to-end and IoT solutions-enabled integrated electronics manufacturer with a market cap of ₹338.64 billion. Kaynes Technology generates revenue primarily from its electronics system design and manufacturing segment. The company focuses on providing integrated electronics manufacturing solutions both domestically and internationally. Kaynes Technology has shown impressive growth, with a 90.7% increase in earnings over the past year. The recent inauguration of an advanced manufacturing facility in Hyderabad further enhances its capabilities. The company’s revenue is forecasted to grow at a rate of 28.5%, while its earnings are expected to grow by 31.1% annually, exceeding the Indian market average.

Info Edge (India) Limited is another tech stock that deserves attention. Operating as an online classifieds company, Info Edge has a market cap of ₹1.02 trillion. The company generates revenue primarily from its recruitment solutions and real estate services. Info Edge has shown robust earnings growth, with a forecasted growth rate of 23.61% annually, exceeding the Indian market average. The company’s revenue is expected to grow at a rate of 13% due to its strong presence in online classifieds and recruitment services. Recently, Info Edge reported a net income of ₹2.33 billion for Q1 2024. The company’s strategic appointments and executive changes aim to boost public policy and revenue growth, making it a high-growth tech stock to watch.

Tech Mahindra Limited is another heavyweight in the Indian tech sector. With a market cap of ₹1.46 trillion, the company provides information technology services and solutions globally. Tech Mahindra generates revenue primarily from IT services and BPO services. The company’s earnings are forecasted to grow at a rate of 28.9%, making it one of the fastest-growing tech stocks in India. Tech Mahindra’s focus on innovation, particularly in areas like AI and digital transformation, positions it well for future growth. The company’s extensive global operations and diversified service offerings make it a compelling investment option.

KPIT Technologies Limited specializes in embedded software, AI, and digital solutions for the automotive and mobility sector. With a market cap of ₹476.35 billion, KPIT Technologies generates revenue primarily from specialized services offered globally. The company’s revenue is expected to grow by 16.1% annually, surpassing the Indian market average. KPIT Technologies has shown remarkable earnings growth, with a 54.7% increase in the past year. The company’s R&D expenses have contributed to advancements in automotive middleware, particularly through its joint venture with ZF Friedrichshafen AG. This focus on innovation and specialization in the automotive sector makes KPIT Technologies a high-growth tech stock to consider.

Nazara Technologies Limited operates a gaming and sports media platform in India and internationally, with a market cap of ₹70.74 billion. The company’s revenue comes primarily from its gaming, e-sports, and ad tech business segments. Nazara Technologies has shown significant earnings growth of 50% over the past year. The company’s revenue is projected to grow at a rate of 17.7% annually, while its earnings are expected to increase by 24.4% per year over the next three years. Nazara is expanding through acquisitions and new subsidiaries in the UK and US, further enhancing its growth prospects. This focus on the rapidly growing gaming and e-sports sectors makes Nazara Technologies a tech stock to watch.

Another notable mention is Info Edge (India) Limited, which operates as an online classifieds company in recruitment, matrimony, real estate, and education services. With a market cap of ₹965.44 billion, Info Edge has shown impressive growth, with revenue and net income increasing significantly year-over-year. The company’s earnings growth rate of 23.61% annually exceeds the Indian market average. Info Edge’s revenue is expected to grow at a rate of 13% annually, driven by its strong presence in online classifieds and recruitment services. The company’s recent executive changes and strategic appointments aim to boost public policy and revenue growth, making it a high-growth tech stock to watch.

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In conclusion, the Indian tech sector offers a plethora of high-growth investment opportunities. Companies like Coforge Limited, Firstsource Solutions Limited, PVR Inox Limited, Kaynes Technology India Limited, Info Edge (India) Limited, Tech Mahindra Limited, KPIT Technologies Limited, and Nazara Technologies Limited are leading the charge with impressive growth rates and innovative solutions. Investors looking to capitalize on the growth potential of the Indian tech sector should consider these high-growth tech stocks. With earnings expected to grow by 17% annually, the Indian tech sector presents a promising investment landscape for the discerning investor.

As always, it’s important for investors to conduct their own research and consider their risk tolerance before making any investment decisions. While the tech sector offers substantial growth potential, it also comes with its own set of risks. By staying informed and keeping an eye on high-growth tech stocks, investors can position themselves to take advantage of the opportunities presented by the dynamic Indian market.