IT – Super Fast Growing Stock

Why Buy – Big beneficiary of cloud migration and IT modernization

SMALL CAP| SUPER STRONG GROWTH IN SALES AND PROFITS SINCE LAST 5 YEARS | SUNRISE INDUSTRY | VERY HIGH PROFIT MARGINS | CLIENTS IN 25+ COUNTRIES

Why Buy this Stock – Complete Story in Simple Language

We all know that a Digital Revolution is taking place in India.

It is well known that most businesses are now adopting IT and wants to use cloud for data storage, safety, and efficiency

Cloud business is expected to grow ~3 times faster than India’s GDP, till 2029. This makes it is a very big opportunity.

Using cloud requires migration and modernization of existing IT systems. This is what this company helps to do. This opportunity has helped it to grow its sales ~6 times faster than industry average in last three years! It is fast expanding and now has clients in 25+ countries.

This company has proved that it can grow much faster than others and it has a very big opportunity that will help it grow for years to come. It is like when MRF stock price grew 51 times in last 20 years when Maruti stock grew 57 times – during the car revolution of India! So, when cloud business grows, this support company also grows. You cannot buy cloud companies’ stocks like Amazon, Microsoft, Google, and IBM etc. in India, but you can definitely buy this.

Massive IT Growth Potential in India

According to NASSCOM, the sector is on track to hit USD 500 Billion in revenue by 2030. The share of digital tech in overall technology services revenue has been on the rise-from 26-28% in FY20 to 32-34% in FY23. The industry continues to be a net hirer, adding 2.9 Lakh new jobs and taking the total employee base to approximately 5.4 million (5.7% year on year growth), strengthening India’s position as the ‘Digital Talent Nation’ for the world.

According to the Strategic Review 2023 published by NASSCOM (“NASSCOM Report”), revenue for the Indian IT services’ sector is expected to be driven by IT modernization including application modernization, cloud migration and platformization.

Cloud to grow ~3 times faster than GDP

India cloud computing market size was estimated at USD 6.47 billion in 2022. During the forecast period between 2023 and 2029, the India cloud computing market size is projected to grow at a CAGR of 18.37% reaching a value of USD 17.8 billion by 2029. This is almost three times faster than India’s GDP growth.

More businesses in India are becoming aware of the advantages of cloud migration, such as business continuity, disaster recovery, and operational efficiency. Cloud providers and IT companies are conducting training and workshops, further driving this awareness.

Full government support

The Indian government’s push towards digitalization, smart cities, and other IT-centric initiatives will inevitably require robust cloud infrastructures. This will lead to increased opportunities for cloud migration services.

Huge potential for cloud and migration

India holds significant potential as a market for cloud migration services due to a combination of economic, technological, and demographic factors. India has been undergoing a digital transformation in various sectors, including government (through its Digital India campaign), banking, e-commerce, education, and more. This pushes businesses and institutions to shift their infrastructure and applications to the cloud for scalability and efficiency.

Government, healthcare, retail, supply chain and logistics, manufacturing and financial services will see an explosion in cloud adoption in India. A Forrester research report expects the Indian cloud market to see unprecedented growth of 24% CAGR in the coming years.

Moving to cloud requires modernization of existing IT infrastructure, and the huge growth potential of cloud means equally huge growth potential for these modernization services.

Startups are creating demand

India’s startup landscape has seen exponential growth, with many startups focusing on tech solutions that inherently rely on the cloud for scalability and global reach. As these startups grow, the need for cloud migration services will increase.

Low-cost advantage and large talent pool

Due to its competitive IT services market and the scale of operations, India offers cost-effective cloud migration services compared to many Western counterparts.

Further, the sector remains on the top globally in terms of AI skills penetration with a 36% digitally skilled workforce, the second largest in terms of AI/ML BDA talent pool, and the third largest in terms of installed supply of Cloud professionals.

IT modernization is happening at a fast pace

Currently, Indian businesses are rapidly modernizing their IT setups including application modernization, cloud migration and platform building. IT business will now include a significant digital component, led by digital transformation, cloudification, platform engineering, AI, building software-as-a-service enabled products and associated consulting services. IT clients are increasingly investing for cost optimization, operational improvements, digital transformation, vendor consolidation, productivity improvement, customer experience programs, innovation in products and services, and talent management. A company operating in this segment has great future, and we have selected the best possible company in this segment with proven growth capabilities.

Company Highlights –

  • 500+ Projects Successfully Delivered
  • ~80% Repeat Business
  • Decade old, well established, fast growth in sales and profits
  • Operates in 25+ countries
  • About 80% income is from exports
  • Very strong ROIC and ROE
  • Very high OPM
  • No debt
  • End user industries have great long-term future
  • Broad range of products facilitates cross-selling
  • Products tailored for industry-specific use along with customization
  • Clients are geographically diversified
  • Business is diversified across several industry verticals
  • Highly scalable business

It is an amazingly fast-growing company. The industry demand is set to rise for years to come and it has all the capabilities to transition from small-cap to large-cap.

Suggested Holding PeriodRisk LevelGrowth Certainty
3-5 yearsLowVery High

Buy this stock report now!

Cloud + IT Modernization Stock

1,500.00

It is an amazingly fast-growing company. The industry demand is set to rise for years to come and it has all the capabilities to transition from small-cap to large-cap. Its capabilities can be confirmed by its Super Strong Growth In Sales And Profits Since Last 5 Years and its Very High Profit Margins. It also has clients in…

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