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Top 5 IT Stocks to Buy in 2022 – Best IT Companies

Top 5 IT Stocks to Buy in 2022 – Best IT Companies
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The growth of this century is dependent on the IT industry totally. Here are the top 5 IT Stocks where you can invest your money in 2022.

The IT sector has been the pioneer of growth during the entire Covid era.  This was the sector that kept Indian Stock Markets moving during the time of the pandemic. And, when we are talking about the future, this sector only is going to be the backbone. For every small thing, we are dependent on IT.

TOP 5 IT Stocks in 2022

1. TCS

  • Market Cap – Rs 11,80,000 Cr.
  • PE Ratio – 30
  • ROCE – 55 %
  • Dividend Yield – 1.33 %
  • Stock Price – Rs 3222

Staying at the top is Tata Consultancy Services and trust me this is the company that was most recently listed with an IPO by the Tata Group. And, hands down, it stands at the top with a market capitalization so huge that is more than the GDPs of a few nations. It is the cash cow of the Tata group accommodating most of the loss-making ventures of the group. Most of the clients giving business to TCS are from out of India.

2. Infosys

  • Market Cap – Rs 640,000 Cr.
  • PE Ratio – 28
  • ROCE – 37 %
  • Dividend Yield – 2.04 %
  • Stock Price – Rs 1521

Moving on, at number two Infosys is not less than something. Promoted by Narayan Murthy, Infosys takes care of most of the Government projects and is hands down another favorite. It has been a multi-bagger stock for a lot of long-term investors.

3. HCL

  • Market Cap – Rs 256,000 Cr.
  • PE Ratio – 19
  • ROCE – 25 %
  • Dividend Yield – 3.38 %
  • Stock Price – Rs 945

HCL is another multinational company having business in almost 50 countries offering different IT services. The company got listed in the market in the year 1999 and since then has been a consistent performer. They do R&D, Engineering, IT Services, BPO, etc.

4. Wipro

  • Market Cap – Rs 228,000 Cr.
  • PE Ratio – 20
  • ROCE – 21 %
  • Dividend Yield – 1.44 %
  • Stock Price – Rs 417

Owned by Azim Premji, Wipro is another story that makes people invest in the stock market for the long term. It was an oil company when Azim Premji took over the business but now it happens to be the fourth largest IT Company in the country. Wipro is another multinational company engaged in the business of technology and business processing services.

5. Tech Mahindra

  • Market Cap – Rs 105,000 Cr.
  • PE Ratio – 19
  • ROCE – 26 %
  • Dividend Yield –  1.38 %
  • Stock Price – Rs 1085

From the Mahindra group, Tech Mahindra is another favorite stock to invest in. It has a wide range of activities involved in its business ranging from IT Services to Application Development & Maintenance, Enterprise solutions, consulting, etc.

One thing very much common about all these companies mentioned above is their owners. They all have an approach toward nation-building and serving society whether be it Ratan Tata or Azim Premji or Anand Mahindra. These are visionary who could sense the prospect of IT back then and now run the top companies in the nation.

Some other IT Companies worth consideration are:

  1. L&T Infotech
  2. Tata Elxsi
  3. Mindtree
  4. Mphasis
  5. L & T Technology
S.No. Name CMP Rs. P/E Mar Cap Rs.Cr.  Div Yld % NP Qtr Rs.Cr. Qtr Profit Var % Sales Qtr Rs.Cr. Qtr Sales Var % ROCE %
1. TCS 3222.20 30.39 1179019.53 1.33 9478.00 5.22 52758.00 16.18 54.87
2. Infosys 1521.55 28.74 640225.34 2.04 5360.00 3.52 34470.00 23.57 37.09
3. HCL Technologies 945.65 18.90 256617.74 3.38 3283.00 2.37 23464.00 16.92 25.40
4. Wipro 417.25 19.82 228846.16 1.44 2563.60 -21.08 21528.60 16.58 21.13
5. Tech Mahindra 1085.55 19.76 105615.60 1.38 1131.60 -16.38 12707.90 24.62 26.57
6. L & T Infotech 4658.95 33.56 81683.24 0.97 633.50 27.64 4522.80 30.62 35.72
7. Tata Elxsi 9349.00 93.75 58222.24 0.45 184.72 62.92 725.89 30.01 47.72
8. Mindtree 3319.30 30.74 54743.65 1.11 471.60 37.33 3121.10 36.19 41.54
9. Mphasis 2166.05 27.29 40746.78 2.12 401.88 18.31 3411.24 26.77 27.38
10. L&T Technology 3669.95 38.17 38739.55 0.68 274.20 26.83 1873.70 23.40 30.7

So, these were the top 5 IT companies in the nation.