What question did this study set out to answer?

To assess historical financial performance, project five-year growth trajectories, and determine the intrinsic market value of ten listed Indian information technology companies.

August 16, 2026Iconic Research and Engineering JournalsOpen Access

Financial Modelling and Forecasting of Selected Information Technology Companies Listed in India

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SCS Chandrika

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Implication

Financial analysis reveals overvaluation across most Indian information technology firms, highlighting the necessity of individualized discounted cash flow models over sector-wide assumptions.

Key Points

To assess historical financial performance, project five-year growth trajectories, and determine the intrinsic market value of ten listed Indian information technology companies.
Analyzed audited financial statements of large-, mid-, and small-cap IT companies (N=10) from FY2020-21 to FY2024-25 using financial ratio, trend, horizontal, and vertical analyses.
Developed five-year financial forecasts (FY2025-26 to FY2029-30) and Discounted Cash Flow (DCF) valuation models, testing cross-sectional and temporal differences using one-way ANOVA and paired t-tests.
Identified statistically significant differences across firms in Return on Equity, Net Profit Margin, and Debt-to-Equity ratios via one-way ANOVA.
Forecasted revenue growth rates were significantly lower than historical growth rates (paired t-test), reflecting a conservative adjustment rather than uncritical trend extrapolation.
Discounted Cash Flow valuation indicated that 9 out of 10 analyzed companies traded above their conservatively estimated intrinsic value, with TCS being the sole exception.

Cite This Study

S Chandrika (2026) studied this question.

synapsesocial.com/papers/6a817ab4f2fb91fc834aeb5d https://doi.org/10.64388/irev10i2-1722314

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Implication

Financial analysis reveals overvaluation across most Indian information technology firms, highlighting the necessity of individualized discounted cash flow models over sector-wide assumptions.

Financial Modelling and Forecasting of Selected Information Technology Companies Listed in India

Discussion

Member takes

Implication

Key Points

Cite This Study

Financial Modelling and Forecasting of Selected Information Technology Companies Listed in India

Discussion

Member takes

Implication

Key Points

Cite This Study

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