Multibagger Update: These IT stocks gained up to 990 per cent in five years; do you own any?

The S& P BSE Information Technology index has gained 178.12 per cent in the past five years and Nifty IT has surged by 162.77 per cent respectively.

The global brokerage firm Nomura has maintained a cautious stance on the IT services sector and expects a significant moderation in the revenue growth rate of the Indian IT companies in FY24 vs FY23. 

Nomura's pessimism about the industry is supported by margin pressures for Large-Cap IT companies due to supply-side pressures, particularly as a result of higher-than-average salary increases in onsite locations, high attrition, and a reduction in discretionary spending on things like travel.  

It further stated that FY23 will witness greater margin disappointment while FY24F would see revenue growth disappointment, all of which need to be fully taken into account by the consensus.    

As far as domestic indices are concerned, S&P BSE Information Technology index tumbled 24.84 per cent YTD whereas Nifty IT index plunged 28.06 per cent. 

 However, the S& P BSE Information Technology index has gained 178.12 per cent in the past five years and Nifty IT has surged by 162.77 per cent respectively.

Even though the IT sector is going through a significant change in perspective, the Indian IT companies remain positive about growth and revenue margins in terms of business outlook.    

Following are some of the multibagger IT stocks that have outperformed the markets in the past five years:

Investors should keep an eye on these stocks for future wealth creation.