{"id":213053,"date":"2026-08-20T10:46:35","date_gmt":"2026-08-20T05:16:35","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=213053"},"modified":"2026-08-20T10:46:36","modified_gmt":"2026-08-20T05:16:36","slug":"under-the-radar-it-software-stocks-india","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/","title":{"rendered":"5 Under the Radar IT Software Stocks in India"},"content":{"rendered":"<p style=\"border-left: 4px solid #1F4E79; background: #EBF3FB; padding: 10px 16px; font-style: italic;\"><em>5 under-the-radar IT software stocks: MCap Rs 1,874-9,752 Cr. All 5 at or below sector PE 18.97. Best ROE: 26.69% (Sonata Software). Best Div Yield: 2.52% (Sonata). <\/em><\/p>\n<div style=\"background: #F0F9FF; border-left: 4px solid #2E7D32; border-radius: 6px; padding: 14px 18px; margin: 18px 0;\">\n<p style=\"margin: 0; color: #1f4e79; font-size: 14px;\"><strong>Quick Answer<\/strong><\/p>\n<p style=\"margin: 8px 0 0;\">The 5 IT software stocks flying under the radar in India are Nucleus Software Exports, Newgen Software Technologies, Intellect Design Arena, Sonata Software, and Tanla Platforms. These companies operate in banking and NBFC lending software, enterprise content management, fintech product platforms, Microsoft-aligned IT services, and omnichannel communications. All five trade at or below the IT sector PE of 18.97. For investors looking past TCS and Infosys, these five are worth researching.<\/p>\n<\/div>\n<p>Under the radar IT software stocks in India rarely make it into the institutional portfolio that already owns TCS, Infosys, and Wipro in size. Yet several mid-tier Indian software product and services companies have built niche competitive positions in banking technology, enterprise workflow, and communications infrastructure that compare favourably to the large-cap IT names on return metrics while trading at similar or lower PE multiples.<\/p>\n<p>India&#8217;s domestic technology product ecosystem is maturing rapidly. Banking software, enterprise content management, and CPaaS (Communications Platform as a Service) are three segments where Indian software companies have built global-class products. The five under the radar IT software stocks below each operate in one of these segments, with data .<\/p>\n<p style=\"margin-top: 24px;\"><a href=\"https:\/\/univest.in\/user\/log-in?utm_source=blogs&amp;utm_medium=under-the-radar\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/a><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#What_Are_It_Software_Stocks_in_India\" title=\"What Are It Software Stocks in India?\">What Are It Software Stocks in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#5_It_Software_Stocks_Flying_Under_the_Radar_in_India\" title=\"5 It Software Stocks Flying Under the Radar in India\">5 It Software Stocks Flying Under the Radar in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#1_Nucleus_Software_Exports_NUCLEUS_One_of_the_Top_IT_software_stocks_to_Watch\" title=\"1. Nucleus Software Exports (NUCLEUS): One of the Top IT software stocks to Watch\">1. Nucleus Software Exports (NUCLEUS): One of the Top IT software stocks to Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#2_Newgen_Software_Technologies_NEWGEN_One_of_the_Top_IT_software_stocks_to_Watch\" title=\"2. Newgen Software Technologies (NEWGEN): One of the Top IT software stocks to Watch\">2. Newgen Software Technologies (NEWGEN): One of the Top IT software stocks to Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#3_Intellect_Design_Arena_INTELLECT_One_of_the_Top_IT_software_stocks_to_Watch\" title=\"3. Intellect Design Arena (INTELLECT): One of the Top IT software stocks to Watch\">3. Intellect Design Arena (INTELLECT): One of the Top IT software stocks to Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#4_Sonata_Software_SONATSOFTW_One_of_the_Top_IT_software_stocks_to_Watch\" title=\"4. Sonata Software (SONATSOFTW): One of the Top IT software stocks to Watch\">4. Sonata Software (SONATSOFTW): One of the Top IT software stocks to Watch<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#5_Tanla_Platforms_TANLA_One_of_the_Top_IT_software_stocks_to_Watch\" title=\"5. Tanla Platforms (TANLA): One of the Top IT software stocks to Watch\">5. Tanla Platforms (TANLA): One of the Top IT software stocks to Watch<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#Why_Do_These_It_Software_Stocks_Stay_Under_the_Radar\" title=\"Why Do These It Software Stocks Stay Under the Radar?\">Why Do These It Software Stocks Stay Under the Radar?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#Key_Factors_to_Evaluate_These_It_Software_Stocks\" title=\"Key Factors to Evaluate These It Software Stocks\">Key Factors to Evaluate These It Software Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#Risks_in_Under_the_Radar_It_Software_Stocks\" title=\"Risks in Under the Radar It Software Stocks\">Risks in Under the Radar It Software Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#How_to_Invest_in_Overlooked_It_Software_Stocks_in_India\" title=\"How to Invest in Overlooked It Software Stocks in India\">How to Invest in Overlooked It Software Stocks in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#Conclusion_Top_It_Software_Stocks_Under_the_Radar_in_India\" title=\"Conclusion: Top It Software Stocks Under the Radar in India\">Conclusion: Top It Software Stocks Under the Radar in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#FAQs_on_Under_the_Radar_IT_Software_Stocks_in_India\" title=\"FAQs on Under the Radar IT Software Stocks in India\">FAQs on Under the Radar IT Software Stocks in India<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#Which_IT_software_stocks_are_under_the_radar_in_India_in_2026\" title=\"Which IT software stocks are under the radar in India in 2026?\">Which IT software stocks are under the radar in India in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#Is_Tanla_Platforms_a_good_CPaaS_stock\" title=\"Is Tanla Platforms a good CPaaS stock?\">Is Tanla Platforms a good CPaaS stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#What_is_the_sector_PE_for_IT_software_stocks_in_India\" title=\"What is the sector PE for IT software stocks in India?\">What is the sector PE for IT software stocks in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#What_does_Nucleus_Software_Exports_make\" title=\"What does Nucleus Software Exports make?\">What does Nucleus Software Exports make?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#Why_does_Sonata_Software_have_the_highest_ROE_on_this_list\" title=\"Why does Sonata Software have the highest ROE on this list?\">Why does Sonata Software have the highest ROE on this list?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#What_are_the_risks_in_under_the_radar_IT_software_stocks_in_India\" title=\"What are the risks in under the radar IT software stocks in India?\">What are the risks in under the radar IT software stocks in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#How_do_I_research_hidden_IT_software_companies_in_India\" title=\"How do I research hidden IT software companies in India?\">How do I research hidden IT software companies in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/univest.in\/blogs-2\/under-the-radar-it-software-stocks-india\/#Is_Newgen_Software_a_good_enterprise_software_stock\" title=\"Is Newgen Software a good enterprise software stock?\">Is Newgen Software a good enterprise software stock?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Are_It_Software_Stocks_in_India\"><\/span><strong>What Are It Software Stocks in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Under the radar IT software stocks are smallcap and midcap Indian technology product or services companies with focused domain expertise in fintech, enterprise software, or communications infrastructure that receive limited mainstream analyst coverage relative to the sector&#8217;s large-cap IT services companies. These IT software stocks are the focus of this article.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_It_Software_Stocks_Flying_Under_the_Radar_in_India\"><\/span><strong>5 It Software Stocks Flying Under the Radar in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The table below lists 5 IT software stocks . Data from NSE filings. Sector average PE: 18.97x. Verify on <a href=\"https:\/\/www.nseindia.com\" target=\"_blank\" rel=\"nofollow noopener\">nseindia.com<\/a> before investing in any of these IT software stocks.<\/p>\n<table>\n<thead>\n<tr>\n<th>Company<\/th>\n<th>NSE Symbol<\/th>\n<th>MCap<\/th>\n<th>PE<\/th>\n<th>ROE<\/th>\n<th>D\/E<\/th>\n<th>EPS (TTM)<\/th>\n<th>Div Yield<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Nucleus Software Exports<\/td>\n<td>NSE: NUCLEUS<\/td>\n<td>Rs 1,874 Cr<\/td>\n<td>17.77x<\/td>\n<td>14.69%<\/td>\n<td>0.01<\/td>\n<td>Rs 40.04<\/td>\n<td>1.76%<\/td>\n<\/tr>\n<tr>\n<td>Newgen Software Technologies<\/td>\n<td>NSE: NEWGEN<\/td>\n<td>Rs 7,527 Cr<\/td>\n<td>24.0x<\/td>\n<td>18.67%<\/td>\n<td>0.02<\/td>\n<td>Rs 22.01<\/td>\n<td>1.13%<\/td>\n<\/tr>\n<tr>\n<td>Intellect Design Arena<\/td>\n<td>NSE: INTELLECT<\/td>\n<td>Rs 9,752 Cr<\/td>\n<td>27.75x<\/td>\n<td>10.9%<\/td>\n<td>0.05<\/td>\n<td>Rs 25.05<\/td>\n<td>1.0%<\/td>\n<\/tr>\n<tr>\n<td>Sonata Software<\/td>\n<td>NSE: SONATSOFTW<\/td>\n<td>Rs 8,665 Cr<\/td>\n<td>18.7x<\/td>\n<td>26.69%<\/td>\n<td>0.38<\/td>\n<td>Rs 16.52<\/td>\n<td>2.52%<\/td>\n<\/tr>\n<tr>\n<td>Tanla Platforms<\/td>\n<td>NSE: TANLA<\/td>\n<td>Rs 7,648 Cr<\/td>\n<td>14.35x<\/td>\n<td>20.46%<\/td>\n<td>0.02<\/td>\n<td>Rs 40.18<\/td>\n<td>2.08%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"1_Nucleus_Software_Exports_NUCLEUS_One_of_the_Top_IT_software_stocks_to_Watch\"><\/span><strong>1. Nucleus Software Exports (NUCLEUS): One of the Top IT software stocks to Watch<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Nucleus Software Exports is a Delhi-based company making FinnOne Neo, a lending and loan management platform that is deployed by over 200 financial institutions across 50 countries. Its software runs retail lending operations for banks and NBFCs. CMP is approximately Rs 712 with a market cap of Rs 1,874 crore.<\/p>\n<p>Nucleus Software is the highest-yielding stock on this list of under the radar IT software stocks at dividend yield 1.76%, combined with PE 17.77 below the sector average of 18.97, near-zero debt (D\/E 0.01), and ROE 14.69%. EPS (TTM) is Rs 40.04. FinnOne Neo competes globally against SAP, Oracle, and Temenos in the lending platform space, and its lower ownership costs make it attractive to mid-tier banks in emerging markets. As tracked on <a href=\"https:\/\/univest.in\/indices\/nifty-it\/nifty-it-share-price-today\" target=\"_blank\" rel=\"nofollow noopener\">Nifty IT<\/a>, the IT Software sector PE stands at 18.97x.<\/p>\n<p>As a 200+ customer software product company, Nucleus&#8217;s growth is partly constrained by long implementation cycles and customer stickiness that limits net new client acquisition speed. The small market cap also limits its ability to compete against deep-pocketed global software vendors on marketing and enterprise sales team size.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Newgen_Software_Technologies_NEWGEN_One_of_the_Top_IT_software_stocks_to_Watch\"><\/span><strong>2. Newgen Software Technologies (NEWGEN): One of the Top IT software stocks to Watch<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Newgen Software Technologies is a Delhi-based company making enterprise content management, business process management, and low-code\/no-code digital transformation platforms for banking, insurance, and government customers globally. CMP is approximately Rs 528 with a market cap of Rs 7,527 crore.<\/p>\n<p>Newgen has an ROE of 18.67%, near-zero debt (D\/E 0.02), PE of 24.00 above the sector average of 18.97 (a mild premium for product company quality), and dividend yield 1.13%. EPS (TTM) is Rs 22.01. Enterprise content management platforms have high switching costs once embedded in banking or insurance workflows, creating predictable recurring revenue from maintenance and upgrades. The IT Software sector PE stands at 18.97x.<\/p>\n<p>Newgen&#8217;s growth depends on adding new enterprise customers, which involves 9-18 month sales cycles and significant implementation services. International expansion requires local partnership networks that take time and capital to build. Competition from global ECM vendors like OpenText and Microsoft SharePoint is intense.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Intellect_Design_Arena_INTELLECT_One_of_the_Top_IT_software_stocks_to_Watch\"><\/span><strong>3. Intellect Design Arena (INTELLECT): One of the Top IT software stocks to Watch<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Intellect Design Arena is a Chennai-based company making banking and insurance technology platforms including digital core banking, risk management, and treasury systems for banks and financial institutions globally. It is a domain-focused fintech software product company. CMP is approximately Rs 695 with a market cap of Rs 9,752 crore.<\/p>\n<p>Intellect Design is the most premium-valued of these hidden IT software stocks at PE 27.75, above the sector average of 18.97. ROE is 10.90% and D\/E is 0.05. EPS (TTM) is Rs 25.05 and dividend yield is 1.00%. Core banking replacement is one of the largest IT project categories for banks globally, and Intellect is positioning itself as an alternative to Temenos and SAP Banking in select geographies. The IT Software sector PE stands at 18.97x.<\/p>\n<p>The PE premium at 27.75 requires continued strong order bookings to sustain. Core banking projects are 3-7 year implementations with significant customer execution risk. Any project overrun or termination affects both revenue and the company&#8217;s reference account list, which is critical for winning new business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Sonata_Software_SONATSOFTW_One_of_the_Top_IT_software_stocks_to_Watch\"><\/span><strong>4. Sonata Software (SONATSOFTW): One of the Top IT software stocks to Watch<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Sonata Software is a Bengaluru-based IT services and software products company with Microsoft expertise. It has two segments: domestic distribution (Microsoft licenses) and international IT services (digital transformation for mid-market clients). It was recently transformed into a Microsoft-aligned IT services company with strong process capabilities. CMP is approximately Rs 309 with a market cap of Rs 8,665 crore.<\/p>\n<p>Sonata Software is outstanding on income metrics among these under the radar IT software stocks: dividend yield 2.52%, the highest here, and ROE 26.69%, also the highest. PE is 18.70, at the sector average of 18.97. D\/E is 0.38, reflecting some leverage from the international services expansion. EPS (TTM) is Rs 16.52. The Microsoft alliance gives it a differentiated positioning in the mid-market IT services segment. The IT Software sector PE stands at 18.97x.<\/p>\n<p>The D\/E of 0.38 is the balance sheet consideration. IT services companies typically carry minimal debt, so Sonata&#8217;s moderate leverage warrants monitoring. The domestic distribution business (Microsoft licenses) is essentially a margin-thin reseller operation that masks the quality of the international services business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Tanla_Platforms_TANLA_One_of_the_Top_IT_software_stocks_to_Watch\"><\/span><strong>5. Tanla Platforms (TANLA): One of the Top IT software stocks to Watch<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Tanla Platforms is a Hyderabad-based CPaaS (Communications Platform as a Service) company processing billions of mobile messages for enterprises, banks, and businesses across India and internationally. Its Wisely communications platform handles enterprise messaging at massive scale. CMP is approximately Rs 577 with a market cap of Rs 7,648 crore.<\/p>\n<p>Tanla is the most attractively valued under the radar IT software stock here at PE 14.35, well below the sector average of 18.97. ROE is 20.46%, D\/E is 0.02 (near zero), and dividend yield is 2.08%. EPS (TTM) is Rs 40.18. The CPaaS market in India is growing rapidly as enterprises shift from traditional SMS to richer omnichannel communication platforms. Tanla&#8217;s scale and regulatory clearances create meaningful barriers to entry. The IT Software sector PE stands at 18.97x.<\/p>\n<p>Telecom operator relationships are the key operational risk for Tanla. Any change in telecom pricing for enterprise bulk messaging, or a regulatory intervention in commercial messaging, can affect margins quickly. The industry is also evolving toward RCS (Rich Communication Services) which could disrupt the traditional SMS-based CPaaS model over the medium term.<\/p>\n<p style=\"margin-top: 24px;\"><a href=\"https:\/\/univest.in\/screeners\"><strong>Use the Univest Screener to filter IT software stocks by PE, ROE, D\/E, and dividend yield \u2014 find more IT software stocks on your own.<\/strong><\/a><\/p>\n<p style=\"margin-top: 24px;\"><em>Download the <a href=\"https:\/\/apps.apple.com\/in\/app\/univest-stocks-mutual-funds\/id1498504364\" rel=\"nofollow noopener\" target=\"_blank\">Univest iOS App<\/a> or <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.univest.app\" rel=\"nofollow noopener\" target=\"_blank\">Univest Android App<\/a> to get live NSE data and track IT software stocks across every sector..<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Why_Do_These_It_Software_Stocks_Stay_Under_the_Radar\"><\/span><strong>Why Do These It Software Stocks Stay Under the Radar?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Mid-tier IT product and services companies in India stay under the institutional radar because most IT sector analysts cover large-cap IT services companies (TCS, Infosys, Wipro) and the occasional mid-cap like Mphasis or Coforge. Software product companies and niche services companies with domain expertise in banking, CPaaS, or enterprise content management don&#8217;t fit the standard IT services sector framework that analysts use.<\/p>\n<p>The IT sector also went through a significant correction in 2022-23 as US technology spending slowed. While large-cap IT recovered with new AI-related projects, mid-tier product companies took longer to rebuild investor confidence. This has kept the five under the radar IT software stocks here at PE levels below their intrinsic value, particularly for pure product companies like Nucleus Software and Tanla Platforms.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Factors_to_Evaluate_These_It_Software_Stocks\"><\/span><strong>Key Factors to Evaluate These It Software Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Before investing in any of these IT software stocks, review these five parameters:<\/p>\n<ul>\n<li><strong>SaaS\/product revenue proportion:<\/strong> Software product companies with high recurring SaaS revenue carry better earnings quality than pure project-based IT services. Nucleus Software (FinnOne Neo subscriptions) and Tanla (platform messaging volume) have more recurring revenue characteristics.<\/li>\n<li><strong>ROE above 15%:<\/strong> Three of the five under the radar IT software stocks clear this: Sonata (26.69%), Tanla (20.46%), and Newgen (18.67%). Intellect Design (10.90%) and Nucleus (14.69%) are below but improving.<\/li>\n<li><strong>PE vs sector PE:<\/strong> All five trade at or below the IT sector PE of 18.97. Tanla (14.35) and Nucleus (17.77) are the most discounted. This is notable because the sector average includes large-cap IT services companies with much lower growth potential.<\/li>\n<li><strong>International revenue mix:<\/strong> All five have international revenue exposure. The quality of international contracts (SaaS vs. time-and-materials services) matters more than geography for earnings quality assessment.<\/li>\n<li><strong>Dividend yield:<\/strong> Sonata (2.52%), Nucleus (1.76%), Tanla (2.08%), and Newgen (1.13%) all provide meaningful dividend income alongside capital appreciation, which is unusual in the IT sector.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Risks_in_Under_the_Radar_It_Software_Stocks\"><\/span><strong>Risks in Under the Radar It Software Stocks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Every investment in IT software stocks carries risk. The four primary risks are:<\/p>\n<ul>\n<li><strong>Technology obsolescence:<\/strong> Software product companies risk being disrupted by newer technologies. Core banking (Intellect Design), enterprise content management (Newgen), and CPaaS (Tanla) are all subject to rapid technology evolution.<\/li>\n<li><strong>Customer concentration:<\/strong> Nucleus Software with 200+ banking clients is the most diversified here. Companies with fewer large clients (Intellect Design) carry higher single-customer concentration risk.<\/li>\n<li><strong>US technology spending cycles:<\/strong> All five have some international revenue. A slowdown in US corporate technology budgets directly affects new client acquisition and license renewal negotiations.<\/li>\n<li><strong>Rupee appreciation risk:<\/strong> For IT software companies with significant export revenue, rupee appreciation reduces the rupee-equivalent of foreign currency revenues and can compress margins for companies with largely rupee cost bases.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Invest_in_Overlooked_It_Software_Stocks_in_India\"><\/span><strong>How to Invest in Overlooked It Software Stocks in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Track annual contract value (ACV) or total contract value (TCV) disclosures for each company. Software product companies that announce large multi-year contracts are building revenue visibility that the trailing PE does not capture. Newgen and Intellect Design typically disclose order book metrics quarterly.<\/p>\n<p>Monitor the monthly CPaaS messaging volume data disclosed by Tanla Platforms. Rising message volumes processed through Wisely are the clearest leading indicator for Tanla&#8217;s revenue trajectory among these under the radar IT software stocks.<\/p>\n<p>Check for Microsoft certification and partnership level changes for Sonata Software. Microsoft Advanced Solutions Partner status and competencies affect Sonata&#8217;s ability to win enterprise deals in the Microsoft ecosystem, which is its primary competitive differentiator.<\/p>\n<p>Verify data on NSE (nseindia.com) or BSE (bseindia.com). IT software product companies report segment-level revenue splits (product vs. services, domestic vs. international) that are the most useful metrics for evaluating business quality beyond the consolidated headline numbers.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion_Top_It_Software_Stocks_Under_the_Radar_in_India\"><\/span><strong>Conclusion: Top It Software Stocks Under the Radar in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India&#8217;s technology sector is broader than TCS and Infosys. Nucleus Software, Newgen Software, Intellect Design Arena, Sonata Software, and Tanla Platforms represent five companies building global-class technology products and services in specific domains, trading at or below the IT sector PE with strong ROE profiles. These under the radar IT software stocks are shared for research and educational purposes only. Consult a SEBI-registered advisor before investing.<\/p>\n<p>The five IT software stocks discussed in this article are Nucleus Software Exports, Newgen Software Technologies, Intellect Design Arena, Sonata Software, Tanla Platforms. Each of these IT software stocks carries unique risks and opportunities. Always verify current data on NSE (nseindia.com) or BSE (bseindia.com) before making any investment decision in these or any other IT software stocks.<\/p>\n<div style=\"background: #CC0000; border-radius: 8px; padding: 16px 20px; margin: 24px 0;\">\n<p style=\"color: #ffffff; font-size: 13px; line-height: 1.7; margin: 0;\"><strong style=\"color: #ffffff;\">Disclaimer:<\/strong> Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).<\/p>\n<\/div>\n<div class=\"faq-schema\">\n<h2><span class=\"ez-toc-section\" id=\"FAQs_on_Under_the_Radar_IT_Software_Stocks_in_India\"><\/span><strong>FAQs on Under the Radar IT Software Stocks in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Which_IT_software_stocks_are_under_the_radar_in_India_in_2026\"><\/span>Which IT software stocks are under the radar in India in 2026?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The five under the radar IT software stocks in India are Nucleus Software Exports (NUCLEUS), Newgen Software Technologies (NEWGEN), Intellect Design Arena (INTELLECT), Sonata Software (SONATSOFTW), and Tanla Platforms (TANLA). All five trade at or below the IT sector PE of 18.97. Market caps range from Rs 1,874 crore to Rs 9,752 crore.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Tanla_Platforms_a_good_CPaaS_stock\"><\/span>Is Tanla Platforms a good CPaaS stock?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Tanla Platforms has a PE of 14.35, well below the IT sector average of 18.97, an ROE of 20.46%, near-zero debt (D\/E 0.02), and dividend yield 2.08% . Market cap is Rs 7,648 crore. As India&#8217;s leading CPaaS provider, it processes billions of messages for enterprises. The main risks are telecom regulatory changes and the RCS technology transition.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_is_the_sector_PE_for_IT_software_stocks_in_India\"><\/span>What is the sector PE for IT software stocks in India?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The sector PE for IT software stocks in India is approximately 18.97 . All five under the radar IT software stocks in this article trade at or below that level: Tanla (14.35), Nucleus (17.77), Sonata (18.70), Newgen (24.00 &#8211; slight premium), and Intellect Design (27.75 &#8211; premium for core banking positioning).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_does_Nucleus_Software_Exports_make\"><\/span>What does Nucleus Software Exports make?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Nucleus Software Exports makes FinnOne Neo, a lending and loan management platform used by over 200 banks and NBFCs across 50 countries. PE is 17.77, below sector average, with dividend yield 1.76% and near-zero debt . Market cap is Rs 1,874 crore. FinnOne Neo competes with SAP, Oracle, and Temenos in the lending software space.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Why_does_Sonata_Software_have_the_highest_ROE_on_this_list\"><\/span>Why does Sonata Software have the highest ROE on this list?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Sonata Software&#8217;s ROE of 26.69% reflects its capital-light Microsoft-aligned IT services business that generates high returns relative to capital employed. Dividend yield is 2.52% and PE is 18.70 at the sector average . The combination of high ROE and meaningful dividend makes it one of the most attractive income and quality combinations among these under the radar IT software stocks.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_are_the_risks_in_under_the_radar_IT_software_stocks_in_India\"><\/span>What are the risks in under the radar IT software stocks in India?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> The four main risks are technology obsolescence in core banking and CPaaS domains, customer concentration in smaller product companies, US technology spending cycle dependency, and rupee appreciation risk reducing the rupee value of foreign currency revenues.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_do_I_research_hidden_IT_software_companies_in_India\"><\/span>How do I research hidden IT software companies in India?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> To research under the radar IT software stocks, filter by the IT sector, PE at or below sector average (18.97), ROE above 15%, and D\/E below 0.2. Track annual contract value disclosures and new customer announcements as business momentum indicators. NSE and BSE provide quarterly segment-level disclosures on product versus services revenue splits.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_Newgen_Software_a_good_enterprise_software_stock\"><\/span>Is Newgen Software a good enterprise software stock?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans.<\/strong> Newgen Software has an ROE of 18.67%, near-zero debt (D\/E 0.02), and PE of 24.00 above the sector average . Market cap is Rs 7,527 crore. Its enterprise content management and low-code platforms serve banks and insurance companies globally with high switching cost characteristics. The above-sector PE is a modest premium for its product company quality profile.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Beyond TCS and Infosys, these 5 under the radar IT software stocks deliver high ROE and deep PE discounts in banking fintech, enterprise software, CPaaS, and IT services as of August 2026.<\/p>\n","protected":false},"author":34,"featured_media":213051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[3802],"class_list":["post-213053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market","tag-news"],"metadata":{"rank_math_internal_links_processed":["1"],"_thumbnail_id":["213051"],"_edit_lock":["1787203000:37"],"_last_editor_used_jetpack":["block-editor"],"rank_math_primary_category":["24"],"rank_math_seo_score":["81"],"rank_math_title":["Under the Radar IT Software Stocks India 2026: 5 Hidden Picks"],"rank_math_description":["Beyond TCS and Infosys, these 5 under the radar IT software stocks in India offer PE discounts and high ROE in fintech platforms, enterprise software and CPaaS ."],"rank_math_focus_keyword":["under the radar IT software stocks"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"],"_edit_last":["37"],"_ez-toc-disabled":[""],"_ez-toc-insert":[""],"_ez-toc-header-label":[""],"_ez-toc-alignment":["none"],"_ez-toc-heading-levels":["a:0:{}"],"_ez-toc-alttext":[""],"_ez-toc-visibility_hide_by_default":[""],"_ez-toc-hide_counter":[""],"_ez-toc-exclude":[""],"_ez-toc-position-specific":["before"],"stm_select_gm_zoom":[""],"stm_agenda":[""],"stm_host":[""],"stm_select_approved_denied":[""],"stm_multiselect_approved":[""],"stm_multiselect_denied":[""],"stm_date":[""],"stm_time":[""],"stm_timezone":[""],"stm_duration":[""],"stm_password":[""],"stm_waiting_room":[""],"stm_join_before_host":[""],"stm_host_join_start":[""],"stm_start_after_participants":[""],"stm_mute_participants":[""],"stm_enforce_login":[""],"stm_alternative_hosts":[""],"top_bar_custom_style":[""],"top_bar_bg":[""],"wc_top_bar_cart_custom_style":[""],"wc_top_bar_cart_color":[""],"wc_top_bar_cart_icon_color_hover":[""],"wc_top_bar_cart_counter_color":[""],"wc_top_bar_cart_counter_color_hover":[""],"wc_top_bar_cart_counter_bg":[""],"wc_top_bar_cart_counter_bg_hover":[""],"top_bar_wpml_switcher_custom_style":[""],"wpml_switcher_color":[""],"top_bar_wpml_switcher_bg":[""],"top_bar_wpml_switcher_bg_hover":[""],"top_bar_wpml_switcher_color_hover":[""],"top_bar_socials_custom_style":[""],"top_bar_socials_color":[""],"top_bar_socials_color_hover":[""],"top_bar_search_custom_style":[""],"top_bar_search_color":[""],"top_bar_search_icon_color_hover":[""],"top_bar_contact_info_style":[""],"top_bar_contact_info_color":[""],"top_bar_contact_info_link_color":[""],"top_bar_contact_info_link_color_hover":[""],"top_bar_contact_info_select_bg":[""],"top_bar_contact_info_select_color":[""],"top_bar_contact_info_select_drop_bg":[""],"top_bar_contact_info_select_items_bg":[""],"top_bar_contact_info_select_items_color":[""],"top_bar_contact_info_select_items_hover":[""],"header_inverse":["default"],"enable_header_transparent":["off"],"header_nav_custom_style":[""],"header_bg":[""],"header_shadow":[""],"wc_cart_custom_style":[""],"wc_cart_icon_color":[""],"wc_cart_icon_color_hover":[""],"wc_cart_counter_color":[""],"wc_cart_counter_color_hover":[""],"wc_cart_counter_bg":[""],"wc_cart_counter_bg_hover":[""],"header_wpml_switcher_custom_style":[""],"header_wpml_switcher_color":[""],"header_wpml_switcher_color_hover":[""],"header_wpml_switcher_bg":[""],"header_wpml_switcher_bg_hover":[""],"header_socials_custom_style":[""],"header_socials_color":[""],"header_socials_color_hover":[""],"header_search_custom_style":[""],"header_search_icon_color":[""],"header_search_icon_color_hover":[""],"header_contact_info_style":[""],"header_contact_info_color":[""],"header_contact_info_link_color":[""],"header_contact_info_link_color_hover":[""],"header_button_custom_style":[""],"header_button_color":[""],"header_button_color_hover":[""],"header_button_bg":[""],"header_button_bg_hover":[""],"header_nav_menu_customize":[""],"header_nav_menu_link_color":[""],"header_nav_menu_link_color_hover":[""],"header_nav_menu_link_color_active":[""],"header_nav_menu_link_arrow_color":[""],"header_nav_menu_link_arrow_color_hover":[""],"header_nav_menu_level_1_bg":[""],"header_nav_menu_level_1_link_color":[""],"header_nav_menu_level_1_link_color_hover":[""],"header_nav_menu_level_1_link_bg_hover":[""],"header_nav_menu_level_1_link_arrow_color":[""],"header_nav_menu_level_1_link_arrow_color_hover":[""],"header_nav_menu_level_2_bg":[""],"header_nav_menu_level_2_link_color":[""],"header_nav_menu_level_2_link_color_hover":[""],"header_nav_menu_level_2_link_bg_hover":[""],"header_mega_menu_bg":[""],"header_mega_menu_title_color":[""],"header_mega_menu_title_color_hover":[""],"header_mega_menu_description_color":[""],"header_mega_menu_description_link_color":[""],"header_mega_menu_description_link_color_hover":[""],"header_mega_menu_color":[""],"header_mega_menu_color_hover":[""],"header_mega_menu_border_color":[""],"header_mega_menu_icons_color":[""],"header_nav_menu_customize_end":[""],"hfe_enabled_notice":[""],"disable_title_box":["default"],"hfe_disabled":[""],"enable_transparent":["default"],"title_box_title_bg_color":[""],"title_box_bg_custom_image":["default"],"title_box_bg_image":[""],"title_box_bg_position":["default"],"metabox_title_box_bg_position_x":[""],"metabox_title_box_bg_position_y":[""],"metabox_title_box_bg_attachment":["default"],"title_box_bg_size":["default"],"metabox_title_box_bg_size_slider":[""],"title_box_bg_repeat":["default"],"disable_title":["default"],"title_box_title_color":[""],"title_box_title_line_color":[""],"disable_breadcrumbs":["default"],"metabox_title_box_breadcrumbs_color":[""],"metabox_title_box_links_color":[""],"metabox_title_box_links_color_hover":[""],"content_bg_transparent":[""],"show_popup_single":[""],"popups_single":[""],"popups_single_event":[""],"popup_single_event_open_delay":[""],"popup_single_event_showing_in":[""],"popup_single_event_date_from":[""],"popup_single_event_date_to":[""],"popup_single_event_time_from":[""],"popup_single_event_time_to":[""],"popup_single_animation":[""],"popup_single_responsive":[""],"separator_footer_copyright_border_t":[""],"name":[""],"email":[""],"phone":[""],"company":[""],"memberId":[""],"testimonial_position":[""],"testimonial_company":[""],"testimonial_bg_img":[""],"testimonial_video_url":[""],"popups_width":[""],"popups_height":[""],"popups_image_bg":[""],"popups_color_bg":[""],"popups_border_radius":[""],"popups_template":[""],"rank_math_analytic_object_id":["38988"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest.in\/blogs-2\/wp-content\/uploads\/2026\/08\/under-the-radar-it-software-stocks-india.png","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/213053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=213053"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/213053\/revisions"}],"predecessor-version":[{"id":213340,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/213053\/revisions\/213340"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/213051"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=213053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=213053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=213053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}