The auto sector is gaining momentum with EV adoption, exports, and domestic recovery. However, the IT sector leads in 2025 with strong global demand, digital transformation, and resilient margins. While both show promise, IT offers higher scalability and consistent earnings in the evolving tech-driven economy.
Content:
- Auto Sector Overview
- IT Sector Overview
- Best Stocks In The Auto Sector
- Top Stocks In The IT Sector
- Fundamental Analysis Of Auto Sector
- Fundamental Analysis Of IT Sector
- Auto Sector Performance & Growth
- IT Sector Performance & Growth
- Government Policies & Incentives For The Auto and IT Sector
- Challenges Faced By Auto and IT Sector
- Future Outlook Of Auto and IT Sector
- How Do You Invest In Auto and IT Sector Stocks?
- Difference Between IT Sector And Auto Sector – Conclusion
- Auto Sector Vs IT Sector – FAQs
Auto Sector Overview
The auto sector includes the manufacturing of vehicles such as two-wheelers, passenger cars, commercial vehicles, and components. It is a key contributor to GDP, exports, and employment, supported by growing urbanization, improved infrastructure, and rising demand for personal and commercial mobility.
The sector is witnessing a shift toward electric vehicles (EVs), connected technologies, and cleaner energy. Automakers are investing in battery tech, digital mobility, and green solutions to stay competitive. Exports and domestic sales are expected to rise with consumer preference and supportive government initiatives.
IT Sector Overview
The Information Technology (IT) sector comprises companies offering software development, consulting, digital services, and IT-enabled solutions. It is export-driven, with strong global client bases, and plays a vital role in India’s service economy, contributing significantly to foreign exchange and employment.
The sector has grown due to global digitization, cloud adoption, AI, and automation. Indian IT firms are expanding capabilities in cybersecurity, analytics, and platforms. Their resilient business models and recurring revenue streams make the IT sector a consistent performer across economic cycles.
Best Stocks In The Auto Sector
The table below shows the best stocks in the Auto Sector based on 1Y return.
| Name | Close price (Rs) | 1Y Return (%) |
| EMA India Ltd | 133.50 | 341.18 |
| Setco Automotive Ltd | 18.87 | 155.00 |
| Ultra Wiring Connectivity System Ltd | 173.40 | 94.72 |
| G. G. Automotive Gears Ltd | 186.75 | 87.03 |
| Tirupati Forge Ltd | 30.78 | 65.04 |
| India Radiators Ltd | 10.26 | 64.95 |
| Hindustan Hardy Ltd | 708.50 | 64.77 |
| NDR Auto Components Ltd | 679.40 | 59.07 |
| Gabriel India Ltd | 555.20 | 51.86 |
| Investment & Precision Castings Ltd | 792.05 | 43.92 |
Top Stocks In The IT Sector
The table below shows the top stocks in the IT Sector based on 1Y return.
| Name | Close price (Rs) | 1Y Return (%) |
| Coforge Ltd | 7566 | 32.80 |
| Tech Mahindra Ltd | 1430.65 | 12.41 |
| Wipro Ltd | 261.25 | 2.41 |
| Infosys Ltd | 1609.35 | 0.41 |
| Hexaware Technologies Ltd | 759.15 | -0.44 |
| HCL Technologies Ltd | 1558.2 | -5.18 |
| Mphasis Ltd | 2293.4 | -6.84 |
| KPIT Technologies Ltd | 1242.75 | -10.16 |
| LTIMindtree Ltd | 4445.55 | -13.97 |
| Tata Consultancy Services Ltd | 3552.45 | -14.45 |
Fundamental Analysis Of Auto Sector
1. EMA India Ltd
EMA India Limited is a pioneer in induction heating equipment manufacturing, established in 1971 by Hari Bhargava and his son Pradip Bhargava. The company formed a joint venture with Germany’s EMA Elektromaschinen Schultz GmbH to introduce state-of-the-art induction heating technology to India. With over 1,000 equipment installations, EMA has established itself as a market leader offering fast, non-polluting, and efficient heating systems.
The stock, trading at ₹133.5 with a market capitalization of ₹13.16 crore, has delivered an extraordinary 5-year CAGR of 113.63% and an outstanding 1-year return of 341.18%. Recent performance shows stability with a marginal 1-month gain of 0.42% and an exceptional 6-month rise of 312.04%. The company does not currently offer dividends, with no 5-year average net profit margin data available.
Close Price (₹): 133.5
Market Cap (Cr): 13.16
1Y Return %: 341.18
6M Return %: 312.04
1M Return %: 0.42
5Y CAGR %: 113.63
5Y Avg Net Profit Margin %: N/A
Sub-Sector: Auto Parts
2. Setco Automotive Ltd
Setco Automotive Limited is an Indian clutch manufacturer established in 1982, specializing in clutch products, systems, and hydraulics for commercial vehicles and tractors. The company operates through five manufacturing units across India, the United Kingdom, and the United States, offering products under the Lipe brand. Setco serves various segments including commercial vehicles and farm tractors with diverse clutch variants.
The stock, trading at ₹18.87 with a market capitalization of ₹257.64 crore, has delivered a solid 5-year CAGR of 27.05% and an extraordinary 1-year return of 155%. Recent performance shows strong momentum with a significant 1-month gain of 19.27% and an impressive 6-month rise of 48.82%. The company does not currently offer dividends, with severe challenges reflected in a negative 5-year average net profit margin of -27.60%.
Close Price (₹): 18.87
Market Cap (Cr): 257.64
1Y Return %: 155
6M Return %: 48.82
1M Return %: 19.27
5Y CAGR %: 27.05
5Y Avg Net Profit Margin %: -27.60
Sub-Sector: Auto Parts
3. Ultra Wiring Connectivity System Ltd
Ultra Wiring Connectivity System Limited is an Indian automotive component manufacturer specializing in couplers, connectors, and allied products for original equipment manufacturers. The company produces various connector series, bulb holders, covers, brackets, cable ties, clips, and automotive fuses. Operating from three manufacturing plants in Delhi and Faridabad, Ultra Wiring maintains warehouses in Pune and Chennai to serve Western and Southern India.
The stock, trading at ₹173.4 with a market capitalization of ₹90.23 crore, has delivered an impressive 5-year CAGR of 48.08% and a strong 1-year return of 94.72%. Recent performance shows no change with a 1-month return of 0% and a significant 6-month rise of 72.28%. The company does not currently offer dividends, supported by a modest 5-year average net profit margin of 4.75%.
Close Price (₹): 173.4
Market Cap (Cr): 90.23
1Y Return %: 94.72
6M Return %: 72.28
5Y CAGR %: 48.08
5Y Avg Net Profit Margin %: 4.75
Sub-Sector: Auto Parts
4. G. G. Automotive Gears Ltd
G. G. Automotive Gears Limited is an Indian manufacturer of traction gears and pinions established to serve the railway and industrial sectors. The company produces railway gears, shafts, forged components, industrial gearboxes, and mining equipment spares. With expertise in various gear types, including spur, helical, bevel, and planetary gears, G. G. Automotive serves diverse industries such as cement, steel, marine, mining, and power plants.
The stock, trading at ₹186.75 with a market capitalization of ₹178.32 crore, shows a strong 1-year return of 87.03% with no 5-year CAGR data available. Recent performance shows positive momentum with a significant 1-month gain of 12.67% and a solid 6-month rise of 33.68%. The company does not currently offer dividends, with a minimal 5-year average net profit margin of 0.58%.
Close Price (₹): 186.75
Market Cap (Cr): 178.32
1Y Return %: 87.03
6M Return %: 33.68
1M Return %: 12.67
5Y Avg Net Profit Margin %: 0.58
Sub-Sector: Auto Parts
5. Tirupati Forge Ltd
Tirupati Forge Limited is an Indian manufacturing company specializing in carbon steel forged flanges, forged components, and automotive parts. With an installed capacity of approximately 18,000 tons per annum, the company produces a diverse range of products, including various types of flanges, forged pipe fittings, gears, seamless rolled rings, and hammer unions using carbon, stainless, and alloy steels.
The stock, trading at ₹30.78 with a market capitalization of ₹325.66 crore, shows a strong 1-year return of 65.04% with no 5-year CAGR data available. Recent performance shows minimal change with a 1-month gain of 0.96% and a minor 6-month decline of 1.31%. The company does not currently offer dividends, supported by a solid 5-year average net profit margin of 5.05%.
Close Price (₹): 30.78
Market Cap (Cr): 325.66
1Y Return %: 65.04
6M Return %: -1.31
1M Return %: 0.96
5Y Avg Net Profit Margin %: 5.05
Sub-Sector: Auto Parts
6. India Radiators Ltd
India Radiators Limited is an automotive component manufacturer incorporated in 1949. The company operated profitably until 1997 before facing financial challenges, becoming BIFR-declared sick in 2000. Following rehabilitation efforts and the repeal of SICA in 2016, India Radiators identified an investor to settle obligations with workers, statutory authorities, and financial institutions, eventually becoming a subsidiary of Mercantile Ventures Limited.
The stock, trading at ₹10.26 with a market capitalization of ₹0.88 crore, shows a strong 1-year return of 64.95% with no 5-year CAGR data available. Recent performance shows no change with a 1-month return of 0% and a significant 6-month rise of 27.30%. The company does not currently offer dividends, with severe challenges reflected in an extremely negative 5-year average net profit margin of -1446.54%.
Close Price (₹): 10.26
Market Cap (Cr): 0.88
1Y Return %: 64.95
6M Return %: 27.30
5Y Avg Net Profit Margin %: -1446.54
Sub-Sector: Auto Parts
7. Hindustan Hardy Ltd
Hindustan Hardy Limited is an Indian company specializing in designing and manufacturing propeller shafts and automotive accessories for automotive, industrial, and agricultural applications. The company offers a diverse product range, including propeller shafts, double cardan shafts, universal joint kits, and components with various customization options. With capabilities for both domestic and international markets, Hindustan Hardy produces specialized components like flange yokes and steering joints.
The stock, trading at ₹708.5 with a market capitalization of ₹112.65 crore, has delivered an impressive 5-year CAGR of 58.51% and a strong 1-year return of 64.77%. Recent performance shows positive momentum with a significant 1-month gain of 19.63% and a solid 6-month rise of 10.32%. The dividend yield stands at 0.33%, supported by a solid 5-year average net profit margin of 5.25%.
Close Price (₹): 708.5
Market Cap (Cr): 112.65
Dividend Yield %: 0.33
1Y Return %: 64.77
6M Return %: 10.32
1M Return %: 19.63
5Y CAGR %: 58.51
5Y Avg Net Profit Margin %: 5.25
Sub-Sector: Auto Parts
8. NDR Auto Components Ltd
NDR Auto Components Limited is an Indian automotive component manufacturer specializing in seats, spare parts, and related components for vehicles. The company produces seat frames and trims for four-wheeler and two-wheeler vehicles, along with body in white (BIW) parts. With four manufacturing facilities across Gurugram, Bengaluru area, and Surendranagar (Gujarat), NDR Auto caters to India’s growing automotive industry.
The stock, trading at ₹679.4 with a market capitalization of ₹1,667.47 crore, shows a strong 1-year return of 59.07% with no 5-year CAGR data available. Recent performance shows significant momentum with a 1-month gain of 25.64% despite a substantial 6-month decline of 15.47%. The dividend yield stands at 0.27%, supported by a healthy 5-year average net profit margin of 6.43%.
Close Price (₹): 679.4
Market Cap (Cr): 1667.47
Dividend Yield %: 0.27
1Y Return %: 59.07
6M Return %: -15.47
1M Return %: 25.64
5Y Avg Net Profit Margin %: 6.43
Sub-Sector: Auto Parts
9. Gabriel India Ltd
Gabriel India Limited is a leading auto component company established in 1961, specializing in ride control components such as shock absorbers, struts, and front forks. The company serves various automotive segments, including two and three-wheelers, passenger cars, commercial vehicles, and railways, with both OEM and aftermarket presence. Gabriel offers a comprehensive range of products from conventional shock absorbers to advanced suspension systems.
The stock, trading at ₹555.2 with a market capitalization of ₹8,392.40 crore, has delivered an impressive 5-year CAGR of 61.02% and a strong 1-year return of 51.86%. Recent performance shows significant momentum with a remarkable 1-month gain of 29.86% and a solid 6-month rise of 14.32%. The dividend yield stands at 0.68%, though no 5-year average net profit margin data is available.
Close Price (₹): 555.2
Market Cap (Cr): 8392.40
Dividend Yield %: 0.68
1Y Return %: 51.86
6M Return %: 14.32
1M Return %: 29.86
5Y CAGR %: 61.02
5Y Avg Net Profit Margin %: N/A
Sub-Sector: Auto Parts
10. Investment & Precision Castings Ltd
Investment & Precision Castings Limited is an Indian investment casting manufacturer producing high-precision components weighing up to 150 kilograms in various material specifications. The company provides ready-to-use machined components primarily for the automotive industry through its in-house CNC machine shop. IPCL serves diverse sectors, including automotive, aerospace, turbochargers, power plants, and medical implants, specializing in fully machined parts.
The stock, trading at ₹792.05 with a market capitalization of ₹398.93 crore, has delivered a strong 5-year CAGR of 41.42% and a solid 1-year return of 43.92%. Recent performance shows strong momentum with a significant 1-month gain of 27.66% despite a substantial 6-month decline of 16.51%. The dividend yield stands at a minimal 0.13%, with a modest 5-year average net profit margin of 1.52%.
Close Price (₹): 792.05
Market Cap (Cr): 398.93
Dividend Yield %: 0.13
1Y Return %: 43.92
6M Return %: -16.51
1M Return %: 27.66
5Y CAGR %: 41.42
5Y Avg Net Profit Margin %: 1.52
Sub-Sector: Auto Parts
Fundamental Analysis Of IT Sector
1. Tata Consultancy Services Ltd
Tata Consultancy Services Limited (TCS) is India’s largest IT services company, established in 1968 as part of the Tata Group. The company provides information technology services, consulting, and business solutions across diverse sectors, including banking, retail, healthcare, and manufacturing. With a global presence spanning 46 countries, TCS offers a comprehensive portfolio of products and cloud services.
The stock, trading at ₹3552.45 with a market capitalization of ₹1,265,498.47 crore, has delivered a solid 5-year CAGR of 16.51% despite a 1-year decline of 14.45%. Recent performance shows weakness with a 1-month drop of 10.18% and a 6-month decline of 18.26%. The dividend yield stands at an attractive 2.09%, supported by an impressive 5-year average net profit margin of 19.22%.
Close Price (₹): 3552.45
Market Cap (Cr): 1265498.47
Dividend Yield %: 2.09
1Y Return %: -14.45
6M Return %: -18.26
1M Return %: -10.18
5Y CAGR %: 16.51
5Y Avg Net Profit Margin %: 19.22
Sub-Sector: IT Services & Consulting
2. Infosys Ltd
Infosys Limited is a global leader in next-generation digital services, founded in 1981 by N.R. Narayana Murthy and six others. Headquartered in Bengaluru, the company provides consulting, technology, outsourcing, and digital services across financial services, retail, communications, and manufacturing sectors. Infosys operates through multiple business segments with products including Finacle, Edge Suite, and Infosys Equinox.
The stock, trading at ₹1609.35 with a market capitalization of ₹658,685.63 crore, has delivered a strong 5-year CAGR of 24.67% with a marginal 1-year gain of 0.42%. Recent performance shows weakness with a significant 1-month drop of 13.87% and a 6-month decline of 14.95%. The dividend yield stands at an attractive 2.89%, supported by an impressive 5-year average net profit margin of 17.42%.
Close Price (₹): 1609.35
Market Cap (Cr): 658685.63
Dividend Yield %: 2.89
1Y Return %: 0.42
6M Return %: -14.95
1M Return %: -13.87
5Y CAGR %: 24.67
5Y Avg Net Profit Margin %: 17.42
Sub-Sector: IT Services & Consulting
3. HCL Technologies Ltd
HCL Technologies Limited is a multinational IT services company founded in 1976 by Shiv Nadar. The company operates through three business segments: IT and Business Services, Engineering and R&D Services, and HCLSoftware. With expertise in digital, IoT, cloud, and cybersecurity solutions, HCL offers comprehensive software and engineering services across VLSI and platform engineering for diverse industries.
The stock, trading at ₹1558.2 with a market capitalization of ₹418,777.26 crore, has delivered an impressive 5-year CAGR of 29.11% despite a 1-year decline of 5.18%. Recent performance shows weakness with a 1-month drop of 9.71% and a 6-month decline of 11.29%. The dividend yield stands at an attractive 3.37%, supported by a healthy 5-year average net profit margin of 14.85%.
Close Price (₹): 1558.2
Market Cap (Cr): 418777.26
Dividend Yield %: 3.37
1Y Return %: -5.18
6M Return %: -11.29
1M Return %: -9.71
5Y CAGR %: 29.11
5Y Avg Net Profit Margin %: 14.85
Sub-Sector: IT Services & Consulting
4. Wipro Ltd
Wipro Limited is a global technology services and consulting company established in 1945 by M.H. Hasham Premji. Headquartered in Bengaluru, the company operates through IT Services and IT Products segments, offering digital strategy advisory, technology consulting, application design, cloud services, and artificial intelligence solutions. Wipro serves diverse industries with expertise in digital experiences and engineering.
The stock, trading at ₹261.25 with a market capitalization of ₹271,797.66 crore, has delivered a strong 5-year CAGR of 25.19% with a modest 1-year gain of 2.41%. Recent performance shows weakness with a significant 1-month drop of 15.00% despite a moderate 6-month decline of 2.91%. The dividend yield stands at a modest 0.19%, supported by a healthy 5-year average net profit margin of 14.24%.
Close Price (₹): 261.25
Market Cap (Cr): 271797.66
Dividend Yield %: 0.19
1Y Return %: 2.41
6M Return %: -2.91
1M Return %: -15.00
5Y CAGR %: 25.19
5Y Avg Net Profit Margin %: 14.24
Sub-Sector: IT Services & Consulting
5. Tech Mahindra Ltd
Tech Mahindra Limited is part of the Mahindra Group, established in 1986 as a joint venture with British Telecom. The company provides digital transformation, consulting and business re-engineering services through IT Services and BPO segments. With a global presence across Americas, Europe and Asia, Tech Mahindra serves diverse industries including communications, banking and manufacturing.
The stock, trading at ₹1430.65 with a market capitalization of ₹140,974.05 crore, has delivered a solid 5-year CAGR of 19.80% and a strong 1-year return of 12.42%. Recent performance shows weakness with a significant 1-month drop of 13.82% and a 6-month decline of 10.89%. The dividend yield stands at an attractive 2.50%, supported by a healthy 5-year average net profit margin of 9.52%.
Close Price (₹): 1430.65
Market Cap (Cr): 140974.05
Dividend Yield %: 2.50
1Y Return %: 12.42
6M Return %: -10.89
1M Return %: -13.82
5Y CAGR %: 19.80
5Y Avg Net Profit Margin %: 9.52
Sub-Sector: IT Services & Consulting
6. LTIMindtree Ltd
LTIMindtree Limited is a global technology consulting and digital solutions company formed through the merger of L&T Infotech and Mindtree in 2022. The company operates across five key segments including Banking & Financial Services, Manufacturing and Retail. With innovative platforms like LTI Infinity and Fosfor, LTIMindtree delivers services in cloud infrastructure, cybersecurity and data analytics.
The stock, trading at ₹4445.55 with a market capitalization of ₹129,149.07 crore, has delivered a strong 5-year CAGR of 26.43% despite a significant 1-year decline of 13.97%. Recent performance shows substantial weakness with a steep 1-month drop of 20.45% and a 6-month plunge of 30.17%. The dividend yield stands at 1.49%, supported by a healthy 5-year average net profit margin of 13.86%.
Close Price (₹): 4445.55
Market Cap (Cr): 129149.07
Dividend Yield %: 1.49
1Y Return %: -13.97
6M Return %: -30.17
1M Return %: -20.45
5Y CAGR %: 26.43
5Y Avg Net Profit Margin %: 13.86
Sub-Sector: IT Services & Consulting
7. Coforge Ltd
Coforge Limited, formerly NIIT Technologies, is an Indian IT solutions company established in 1981. The company specializes in application development, managed services, cloud computing, and business process outsourcing. Operating across the Americas, EMEA, and APAC regions, Coforge offers diverse technologies, including digital integration, artificial intelligence, cybersecurity services, and advanced application engineering.
The stock, trading at ₹7566 with a market capitalization of ₹49,256.61 crore, has delivered an exceptional 5-year CAGR of 46.55% and an impressive 1-year return of 32.80%. Recent performance shows a 1-month decline of 4.10% but a strong 6-month gain of 10.28%. The dividend yield stands at 0.95%, supported by a healthy 5-year average net profit margin of 9.54%.
Close Price (₹): 7566
Market Cap (Cr): 49256.61
Dividend Yield %: 0.95
1Y Return %: 32.80
6M Return %: 10.28
1M Return %: -4.10
5Y CAGR %: 46.55
5Y Avg Net Profit Margin %: 9.54
Sub-Sector: IT Services & Consulting
8. Hexaware Technologies Ltd
Hexaware Technologies Limited is an Indian global technology and business process services company founded in 1990. The company specializes in IT consulting, software development, data and AI, cloud services and enterprise platforms. Operating across travel, financial services, healthcare and manufacturing segments, Hexaware offers proprietary platforms including RapidX, Amaze and Tensai for digital transformation.
The stock, trading at ₹759.15 with a market capitalization of ₹45,710.79 crore, shows a marginal 1-year decline of 0.45% with no 5-year CAGR data available. Recent performance shows positive momentum with a 1-month gain of 2.49% despite a marginal 6-month decline of 0.45%. The dividend yield stands at 1.16%, supported by a healthy 5-year average net profit margin of 9.80%.
Close Price (₹): 759.15
Market Cap (Cr): 45710.79
Dividend Yield %: 1.16
1Y Return %: -0.45
6M Return %: -0.45
1M Return %: 2.49
5Y CAGR %: N/A
5Y Avg Net Profit Margin %: 9.80
Sub-Sector: IT Services & Consulting
9. Mphasis Ltd
Mphasis Limited is an Indian IT solutions provider established in 1998, now majority-owned by Blackstone Group. The company specializes in cloud and cognitive services, applying technology to transform businesses globally. Operating across banking, logistics and technology sectors, Mphasis delivers application services, blockchain platforms, digital solutions and infrastructure services using its Front2Back transformation approach.
The stock, trading at ₹2293.4 with a market capitalization of ₹41,736.99 crore, has delivered a strong 5-year CAGR of 27.24% despite a 1-year decline of 6.84%. Recent performance shows significant weakness with a 1-month drop of 14.51% and a 6-month decline of 23.67%. The dividend yield stands at an attractive 2.49%, supported by a healthy 5-year average net profit margin of 12.11%.
Close Price (₹): 2293.4
Market Cap (Cr): 41736.99
Dividend Yield %: 2.49
1Y Return %: -6.84
6M Return %: -23.67
1M Return %: -14.51
5Y CAGR %: 27.24
5Y Avg Net Profit Margin %: 12.11
Sub-Sector: IT Services & Consulting
10. KPIT Technologies Ltd
KPIT Technologies Limited is an Indian technology company established in 1990, specializing in software solutions for the automotive and mobility industry. The document shows Birlasoft’s information, which suggests there might be a data error. KPIT provides engineering services, product development, and digital solutions focusing on electrification, autonomous driving, and connected vehicle technologies for global automotive clients.
The stock, trading at ₹1242.75 with a market capitalization of ₹33,957.28 crore, has delivered an extraordinary 5-year CAGR of 86.93% despite a 1-year decline of 10.16%. Recent performance shows a moderate 1-month drop of 4.59% but a significant 6-month decline of 28.05%. The dividend yield stands at 0.54%, supported by a healthy 5-year average net profit margin of 9.63%.
Close Price (₹): 1242.75
Market Cap (Cr): 33957.28
Dividend Yield %: 0.54
1Y Return %: -10.16
6M Return %: -28.05
1M Return %: -4.59
5Y CAGR %: 86.93
5Y Avg Net Profit Margin %: 9.63
Sub-Sector: IT Services & Consulting
Auto Sector Performance & Growth
The table below shows Auto Sector Performance & Growth based on 5-Year Net Profit Margin.
| Name | Close price (Rs) | 5 Year Net Profit Margin (%) |
| NDR Auto Components Ltd | 679.40 | 6.43 |
| Hindustan Hardy Ltd | 708.50 | 5.25 |
| Tirupati Forge Ltd | 30.78 | 5.05 |
| Ultra Wiring Connectivity System Ltd | 173.40 | 4.75 |
| Investment & Precision Castings Ltd | 792.05 | 1.52 |
| G. G. Automotive Gears Ltd | 186.75 | 0.58 |
| EMA India Ltd | 133.50 | 0.00 |
| Gabriel India Ltd | 555.20 | 0.00 |
| Setco Automotive Ltd | 18.87 | -27.60 |
| India Radiators Ltd | 10.26 | -1446.54 |
IT Sector Performance & Growth
The table below shows IT sector Performance & Growth based on the 5-year net Profit Margin.
| Name | Close price (Rs) | 5 Year Net Profit Margin (%) |
| Tata Consultancy Services Ltd | 3552.45 | 19.22126 |
| Infosys Ltd | 1609.35 | 17.42011 |
| HCL Technologies Ltd | 1558.2 | 14.84524 |
| Wipro Ltd | 261.25 | 14.24441 |
| LTIMindtree Ltd | 4445.55 | 13.85667 |
| Mphasis Ltd | 2293.4 | 12.10754 |
| Hexaware Technologies Ltd | 759.15 | 9.797385 |
| KPIT Technologies Ltd | 1242.75 | 9.633383 |
| Coforge Ltd | 7566 | 9.537248 |
| Tech Mahindra Ltd | 1430.65 | 9.515667 |
Government Policies & Incentives For The Auto and IT Sector
The auto sector benefits from FAME-II, the Production-Linked Incentive (PLI) scheme, and the National Electric Mobility Mission. These initiatives promote EV adoption, localization of manufacturing, and innovation in clean and connected mobility solutions, encouraging investments and long-term industry competitiveness.
The IT sector enjoys tax benefits under SEZs, incentives from the India BPO Promotion Scheme, and infrastructure development for Tier-2 cities. Simplified regulations, skilling programs, and strong data protection laws support India’s growing digital economy and global leadership in IT services and exports.
Challenges Faced By Auto and IT Sector
The main challenges faced by the auto and IT sectors include regulatory delays, talent shortages, and global uncertainties. The auto sector struggles with EV transition, input costs, and infrastructure gaps, while the IT sector deals with attrition, cybersecurity threats, and global pricing pressures.
Auto Sector
- EV Transition and Infrastructure Gaps: The shift to electric vehicles is hampered by high battery costs, limited charging infrastructure, and uneven policy implementation. This slows consumer adoption and makes large-scale EV production a capital-intensive challenge.
- Input Cost Inflation: Rising prices of raw materials such as steel, aluminum, and semiconductors squeeze profit margins. The inability to fully pass on costs impacts profitability and model affordability in a price-sensitive market.
- Regulatory Delays: Delays in approvals for new technologies, emission norms, and safety standards create uncertainty. These hurdles affect product planning, R&D cycles, and market launch timelines, especially for innovation-driven models.
IT Sector
- High Attrition Rates: The IT sector continues to face high employee turnover, especially in niche skills like cloud and cybersecurity. Retaining talent while managing wage inflation and upskilling remains a key operational challenge.
- Cybersecurity and Data Privacy: Growing cyber threats and stricter global data regulations demand heavy investments in compliance and protection infrastructure. Failure to meet standards risks client trust, penalties, and reputational damage.
- Global Competition: Indian IT firms face strong competition from global tech giants and digital-first startups. Pricing pressure, rapid innovation cycles, and evolving client demands require continuous reinvention and efficiency to protect margins and market share.
Future Outlook Of Auto and IT Sector
The auto sector’s future will be shaped by rising EV penetration, smart mobility, and sustainability. With government incentives and OEM innovation, the sector is poised for strong growth in electric, hybrid, and autonomous vehicle segments, supported by expanding infrastructure.
The IT sector is set to expand through cloud adoption, AI-driven platforms, and digital transformation across industries. As global tech spending rises, Indian IT firms will lead with scalable delivery models, automation solutions, and advanced capabilities in data analytics, cybersecurity, and digital experience.
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Difference Between IT Sector And Auto Sector – Conclusion
- The auto sector is growing through EVs and exports, but the IT sector leads 2025 with digital transformation and global demand. IT offers higher scalability and stable earnings, making it more promising in a tech-driven economy.
- India’s auto sector manufactures two-wheelers, cars, commercial vehicles, and components. It supports GDP, jobs, and exports, driven by urbanisation, infrastructure growth, and increasing personal and commercial mobility demand across rural and urban regions of the country.
- The IT sector includes software services, digital transformation, and consulting. Export-driven with global clients, it contributes to foreign exchange and jobs, and remains a core part of India’s services economy and technology-driven growth.
- The auto sector benefits from FAME-II, the PLI scheme, and electric mobility missions, boosting EV adoption, manufacturing localization, and innovation, which attract investments and strengthen long-term industry competitiveness.
- The main challenges for the auto and IT sectors include regulatory delays, talent shortages, and global uncertainties. The auto sector faces EV transition and cost issues, while IT tackles attrition, cybersecurity, and pricing pressure.
- The auto sector’s future lies in EV growth, smart mobility, and sustainability. Government support and innovation will drive expansion in electric, hybrid, and autonomous vehicles, backed by improving infrastructure nationwide.
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Auto Sector Vs IT Sector – FAQs
The auto sector includes companies that manufacture two-wheelers, cars, commercial vehicles, and auto parts. It plays a major role in India’s GDP, exports, and employment. The sector is transforming through electric vehicles, automation, and green mobility, driven by innovation and consumer demand.
The IT sector comprises companies providing software development, digital solutions, consulting, and IT-enabled services. It is export-driven and plays a key role in India’s service economy. The sector benefits from global demand for cloud, AI, analytics, cybersecurity, and automation technologies.
The main difference between the Auto Sector and the IT Sector is that the auto sector focuses on physical product manufacturing like vehicles, while the IT sector delivers digital services. Auto is cyclical and capital-intensive, whereas IT offers asset-light, scalable models with recurring revenue and greater global exposure.
Best Stocks In The Auto Sector #1: Gabriel India Ltd
Best Stocks In The Auto Sector #2: NDR Auto Components Ltd
Best Stocks In The Auto Sector #3: Investment & Precision Castings Ltd
Best Stocks In The Auto Sector #4: Tirupati Forge Ltd
Best Stocks In The Auto Sector #5: Setco Automotive Ltd
Best Stocks In The Auto Sector based on market capitalization.
Best Stocks In The IT Sector #1: Tata Consultancy Services Ltd
Best Stocks In The IT Sector #2: Infosys Ltd
Best Stocks In The IT Sector #3: HCL Technologies Ltd
Best Stocks In The IT Sector #4: Wipro Ltd
Best Stocks In The IT Sector #5: Tech Mahindra Ltd
Best Stocks In The IT Sector based on market capitalization.
Penny stocks in the IT sector include Zen Technologies, Subex, Kellton Tech, and 3i Infotech. These stocks are low-priced and offer potential upside, but carry risks due to small size, market volatility, and dependency on niche technologies or contracts.
The main challenges faced by the IT Sector include high attrition, cybersecurity risks, and regulatory changes. Indian IT companies also face pricing pressure, talent shortage in niche skills, and intense global competition, requiring constant upskilling and innovation to maintain margins and client satisfaction.
Yes, IT stocks offer long-term growth due to global digital transformation, recurring revenue models, and strong balance sheets. Investors benefit from scalability, dividend payouts, and consistent earnings, especially with companies focused on AI, cloud, automation, and cybersecurity services.
Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.
