BSE:532628

Stock Analysis Report

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Executive Summary

3i Infotech Limited provides IP based software solutions and information technology services in India and internationally. More Details


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has 3i Infotech's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532628 is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 532628's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

-0.9%

532628

2.6%

IN Software

2.1%

IN Market


1 Year Return

73.5%

532628

43.8%

IN Software

7.0%

IN Market

Return vs Industry: 532628 exceeded the Indian Software industry which returned 43.8% over the past year.

Return vs Market: 532628 exceeded the Indian Market which returned 7% over the past year.


Shareholder returns

532628IndustryMarket
7 Day-0.9%2.6%2.1%
30 Day12.6%4.9%9.1%
90 Day-14.4%17.8%9.3%
1 Year73.5%73.5%50.0%43.8%9.0%7.0%
3 Year-12.4%-12.4%15.4%4.2%6.7%1.5%
5 Year-34.6%-34.6%16.4%0.5%53.5%42.0%

Long-Term Price Volatility Vs. Market

How volatile is 3i Infotech's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is 3i Infotech undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532628 (₹3.4) is trading below our estimate of fair value (₹13.35)

Significantly Below Fair Value: 532628 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 532628 is good value based on its PE Ratio (6.8x) compared to the IN Software industry average (13.6x).

PE vs Market: 532628 is good value based on its PE Ratio (6.8x) compared to the Indian market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532628's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532628's PB Ratio (1.4x) is in line with the IN Software industry average.


Next Steps

Future Growth

How is 3i Infotech forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.2%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as 3i Infotech has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has 3i Infotech performed over the past 5 years?

71.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532628 has high quality earnings.

Growing Profit Margin: 532628's current net profit margins (7.4%) are higher than last year (5.7%).


Past Earnings Growth Analysis

Earnings Trend: 532628 has become profitable over the past 5 years, growing earnings by 71.7% per year.

Accelerating Growth: 532628's earnings growth over the past year (15.1%) is below its 5-year average (71.7% per year).

Earnings vs Industry: 532628 earnings growth over the past year (15.1%) underperformed the Software industry 18%.


Return on Equity

High ROE: 532628's Return on Equity (18.6%) is considered low.


Next Steps

Financial Health

How is 3i Infotech's financial position?


Financial Position Analysis

Short Term Liabilities: 532628's short term assets (₹5.6B) exceed its short term liabilities (₹3.2B).

Long Term Liabilities: 532628's short term assets (₹5.6B) do not cover its long term liabilities (₹8.1B).


Debt to Equity History and Analysis

Debt Level: 532628's debt to equity ratio (177.6%) is considered high.

Reducing Debt: 532628 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: 532628's debt is well covered by operating cash flow (28.7%).

Interest Coverage: 532628's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is 3i Infotech current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 532628's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 532628's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 532628's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532628's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532628 is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532628's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average board tenure


CEO

Padmanabhan Nemmara Iyer (56 yo)

4.25yrs

Tenure

₹21,130,000

Compensation

Mr. Padmanabhan Nemmara Ranganathan Iyer has been the Managing Director and Chief Executive Officer of 3i Infotech Limited since August 11, 2016 and has been its Executive Director since May 18, 2016. Mr....


CEO Compensation Analysis

Compensation vs Market: Padmanabhan Nemmara's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.36K).

Compensation vs Earnings: Padmanabhan Nemmara's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Padmanabhan Nemmara Iyer
MD, Global CEO4.25yrs₹21.13m0.00012%
₹ 6.5k
Pravir Vohra
Additional Non-Executive Director0.17yrno datano data
Zohra Chatterji
Director0.67yrno datano data
Ashok Shah
Independent Chairman5.08yrs₹1.10mno data
Rajeev Sinha
Nominee Director1.42yrsno datano data
Sandeep Gupta
Nominee Director0.83yrno datano data

1.1yrs

Average Tenure

66yo

Average Age

Experienced Board: 532628's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

3i Infotech Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 3i Infotech Limited
  • Ticker: 532628
  • Exchange: BSE
  • Founded: 1993
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: ₹5.432b
  • Shares outstanding: 1.62b
  • Website: https://www.3i-infotech.com

Number of Employees


Location

  • 3i Infotech Limited
  • Tower # 5
  • 3rd to 6th Floors
  • Navi Mumbai
  • Maharashtra
  • 400703
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532628BSE (Mumbai Stock Exchange)YesEquity SharesININRApr 2005
3IINFOTECHNSEI (National Stock Exchange of India)YesEquity SharesININRApr 2005

Biography

3i Infotech Limited provides IP based software solutions and information technology services in India and internationally. The company offers Kastle Universal Lending System, a centralized database and bro...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 12:02
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.