INTRINSIC VALUE OF SHARE - AS A DECISION MAKER TO BUY OR SELL THE SHARES (WITH SPECIAL REFERENCE TO SELECT INDIAN IT COMPANIES SHARES)

Abstract

The remarkable feature of India’s IT industry is that along with its expansion in terms of market size it is also incrementally adding a significant share to India’s gross domestic product (GDP) and consequently boosting the growth and development of the country. India’s digitally skilled pool has grown over the period and accounted for around 75 percent of global digital talent. India’s four large IT companies (TCS, Infosys, Wipro, HCL Tech) have employed more than one million employees. New IT-based technologies such as telemedicine, remote monitoring, etc. are expanding and boosting the demand in the digital economy. The rollout of fifth-generation (5G) communication technology, growing adoption of artificial intelligence, Big Data analytics, cloud computing and the Internet of Things (IoT) will further expand the size of the IT industry in India.

     This paper may provide required information to those who are interested in investment in IT sector.  Ratio analysis and CAGR tools are used.  TCS, Infosys, HCL Technologies Intrinsic value is less than that of market value of the share so; in this case it is feasible to take the decision to sell the stock. The intrinsic value of Wipro and Tech Mahindra are more than the market value so, it is feasible to the investors to invest in these companies with the hope that in future the market value of share may increase.