The Indian digital economy is set to reach an estimated $1 trillion by 2028. At the heart of this transformation lies the cloud computing sector. It has become a silent enabler of progress. In the upcoming sections, we’ll talk about the sector in close and the top cloud computing stocks at the forefront of this transformative shift.
Cloud-based services have transformed many sectors in the wake of modern technological developments. The industry’s leading companies show the potential to contribute to India’s tech revolution. India’s cloud market may rise with a 23.4% compounded annual growth rate (CAGR) from 2022 to 2027.
However, this futuristic revolution can provide the required resources in terms of infrastructure, finance, personnel, etc., for almost all the business sectors. The stock market can be one of the prominent avenues for finance in these entities. Investors can benefit by investing in cloud computing stocks. Let’s explore more.
Cloud computing stocks– What is it?
Cloud computing stocks represent companies that deliver advanced digital solutions, allowing businesses to store, manage, and process data over the internet. These companies eliminate the need for physical systems, offering flexible options that adapt to varying requirements and reduce operational costs.
Cloud environments are typically classified into:
- Public, where resources are shared among multiple users online.
- Private, which is restricted to a single organisation for enhanced control.
- Hybrid, a combination that balances flexibility with security.
The overall cloud-computing revolution in India has the potential to fill the technological gaps.
Cloud computing in India
Revenue of India’s data centre market in 2023 was valued at approx US$7.4 billion. It has provided required resource support for the cloud-computing companies in India. The overall public cloud-computing industry in India has marched potentially in recent years.
| Particulars | Market size (US$ Billion) |
| 2021 | 5.6 |
| 2022 | 7.1 |
| 2026 (estimated) | 18.5 |
Source: Indian Brand Equity Foundation (IBEF)
India’s cloud market approximately accounts for 1.5% of the global cloud market. Based on the demand perspective the Indian cloud value chain is expected to include several new aspects in the upcoming years. Therefore, cloud computing stocks in India also have potential growth scopes.
Also explore: Best IT Stocks in India for Long-Term Growth
Must-watch top cloud computing stocks in India
Investing in futuristic stocks can revolutionise the investment game. We have curated a list of top cloud computing stocks in India based on their market capitalisation as of December 2, 2024 and the nature of business.
Operating since 1968, the company has changed the outlook of software-based services and Information and Technology (IT) consulting in India. Its product line includes cloud computing platforms and private cloud facilities.
Financials:
| Particulars | Amount (in ₹ crores) |
| Revenue | 2,48,692.0 |
| Net Profit Margin | 19.4% |
| Net Worth | 1,01,495.0 |
| Return on Equity | 51.5% |
| Price to Earnings Ratio (in times) | 32.1 |
The company is popular for its robust cluster of services including consulting, infrastructure, lifecycle management and ecosystem. The company’s growth trajectory is evident in its net profit growth in the previous decade.
Financials:
| Particulars | Amount (in ₹ crores) |
| Revenue | 1,57,045.0 |
| Net Profit Margin | 16.9% |
| Net Worth | 90,463.0 |
| Return on Equity | 31.8% |
| Price to Earnings Ratio (in times) | 28.6% |
An interesting read: Infosys Ltd Fundamental analysis of IT giant
Its ‘FullStride Cloud’ is a cohort of varied services such as modernisation security, infrastructure and risk management. Its share prices have surged nearly by 140% in the past five years, and along with potential return on equity.
Financials:
| Particulars | Amount (in ₹ crores) |
| Revenue | 88,678.8 |
| Net Profit Margin | 12.2% |
| Net Worth | 81,376.8 |
| Return on Equity | 14.3% |
| Price to Earnings Ratio (in times) | 25.8 |
Its platforms of ‘CloudXperienz’ seek to facilitate Generational Artificial Intelligence (Gen AI) and robust cloud infrastructure. The company’s quarterly profits declined in the Q4 of FY 2023-24. However, its operations are determined to regain the levels.
Financials:
| Particulars | Amount (in ₹ crores) |
| Revenue | 36,485.0 |
| Net Profit Margin | 12.9% |
| Net Worth | 21,074.8 |
| Return on Equity | 25.0% |
| Price to Earnings Ratio (in times) | 39.4 |
Its cloud and cognitive intelligence services along with a strong product line in the software industry are key elements in the company’s portfolio. Established in 1998, the share price of this entity has surged significantly in recent times and in the past year, it has surged 27%.
Financials:
| Particulars | Amount (in ₹ crores) |
| Revenue | 13,708.6 |
| Net Profit Margin | 11.6% |
| Net Worth | 8,669.2 |
| Return on Equity | 18.4% |
| Price to Earnings Ratio (in times) | 35.7 |
Bottomline
The growth of the cloud computing industry in India is a potential aspect of the Indian technological revolution. Investors can become a part of this growth by investing in cloud computing stocks. However, the stock market has inherent risks and demands informed research and analysis.
Check this out! The 5G revolution: Top 5G stocks in India
FAQS
- Which company is best for cloud computing in India?
In terms of revenue the TCS leads the cloud computing industry in India. Moreover, its stock has also surged by 162% in the past five years. However, selecting the best stock majorly depends on the investor’s perspective of financial objective, time horizon and potential risk appetite.
- Is it good to invest in cloud computing?
India’s overall growth prospects are perceived to be very strong in the upcoming years. Technological aid is a crucial factor for this growth, and in the evolving business scenarios, cloud computing has played a potential role. Investors can invest in cloud computing stocks and be a part of this growth.
- Which is the best technology stock in India?
Based on the final profit growth rate in recent years, Infosys has evolved into one of the strongest entities. Moreover, its financials indicate better future potential. If its risk level matches that of investors, it can be one of the potential technological stocks in India.
- Is cloud computing in demand in India?
Growth of India’s data centre market in the upcoming years has significant potential and it can facilitate required resources for the cloud computing industry. Moreover, cloud services and infrastructure can integrate the growing digitalisation needs in India. Therefore, cloud computing space in India is expected to have a strong outlook in the upcoming years.
- Is it good to invest in cloud computing?
Yes, cloud computing is a sector which can potentially satiate the needs of almost all sectors by integrating their technical support. Therefore, it has crucial growth prospects in India. Investors can potentially benefit from this growth by investing in cloud computing stocks.
