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3i Infotech

NSEI:3IINFOTECH
Snowflake Description

Acceptable track record and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3IINFOTECH
NSEI
₹7B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

3i Infotech Limited provides IP based software solutions and information technology services in India and internationally. The last earnings update was 94 days ago. More info.


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  • 3i Infotech has significant price volatility in the past 3 months.
3IINFOTECH Share Price and Events
7 Day Returns
10.8%
NSEI:3IINFOTECH
0.9%
IN Software
0.8%
IN Market
1 Year Returns
-30.5%
NSEI:3IINFOTECH
-18.4%
IN Software
-0.7%
IN Market
3IINFOTECH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
3i Infotech (3IINFOTECH) 10.8% 5.1% 13.9% -30.5% -3.5% -43.8%
IN Software 0.9% 3.2% -4.8% -18.4% -4.1% 26.8%
IN Market 0.8% 2.8% 5.9% -0.7% 41.2% 72.5%
1 Year Return vs Industry and Market
  • 3IINFOTECH underperformed the Software industry which returned -18.4% over the past year.
  • 3IINFOTECH underperformed the Market in India which returned -0.7% over the past year.
Price Volatility
3IINFOTECH
Industry
5yr Volatility vs Market

3IINFOTECH Value

 Is 3i Infotech undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of 3i Infotech to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for 3i Infotech.

NSEI:3IINFOTECH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 22.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:3IINFOTECH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.134 (1 + (1- 35%) (122.38%))
1.694
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.69
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.694 * 8.6%)
22.12%

Discounted Cash Flow Calculation for NSEI:3IINFOTECH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for 3i Infotech is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:3IINFOTECH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 22.12%)
2019 1,069.70 Est @ 10.73% 875.97
2020 1,174.28 Est @ 9.78% 787.46
2021 1,281.25 Est @ 9.11% 703.59
2022 1,391.96 Est @ 8.64% 625.95
2023 1,507.69 Est @ 8.31% 555.20
2024 1,629.58 Est @ 8.08% 491.41
2025 1,758.71 Est @ 7.92% 434.30
2026 1,896.10 Est @ 7.81% 383.43
2027 2,042.74 Est @ 7.73% 338.27
2028 2,199.58 Est @ 7.68% 298.28
Present value of next 10 years cash flows ₹5,493.87
NSEI:3IINFOTECH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹2,199.58 × (1 + 7.55%) ÷ (22.12% – 7.55%)
₹16,241.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹16,241.18 ÷ (1 + 22.12%)10
₹2,202.42
NSEI:3IINFOTECH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹5,493.87 + ₹2,202.42
₹7,696.28
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹7,696.28 / 1,616.64
₹4.76
NSEI:3IINFOTECH Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:3IINFOTECH represents 0.99514x of BSE:532628
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.99514x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 4.76 x 0.99514
₹4.74
Value per share (INR) From above. ₹4.74
Current discount Discount to share price of ₹4.10
= -1 x (₹4.10 - ₹4.74) / ₹4.74
13.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price 3i Infotech is available for.
Intrinsic value
13%
Share price is ₹4.1 vs Future cash flow value of ₹4.74
Current Discount Checks
For 3i Infotech to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 3i Infotech's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • 3i Infotech's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for 3i Infotech's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are 3i Infotech's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:3IINFOTECH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹0.30
BSE:532628 Share Price ** BSE (2019-04-22) in INR ₹4.12
India Software Industry PE Ratio Median Figure of 48 Publicly-Listed Software Companies 16.08x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.33x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of 3i Infotech.

NSEI:3IINFOTECH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:532628 Share Price ÷ EPS (both in INR)

= 4.12 ÷ 0.30

13.69x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 3i Infotech is good value based on earnings compared to the IN Software industry average.
  • 3i Infotech is good value based on earnings compared to the India market.
Price based on expected Growth
Does 3i Infotech's expected growth come at a high price?
Raw Data
NSEI:3IINFOTECH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.69x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
3%per year
India Software Industry PEG Ratio Median Figure of 9 Publicly-Listed Software Companies 0.94x
India Market PEG Ratio Median Figure of 585 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for 3i Infotech, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on 3i Infotech's assets?
Raw Data
NSEI:3IINFOTECH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹1.79
BSE:532628 Share Price * BSE (2019-04-22) in INR ₹4.12
India Software Industry PB Ratio Median Figure of 66 Publicly-Listed Software Companies 1.21x
India Market PB Ratio Median Figure of 3,628 Publicly-Listed Companies 1.11x
NSEI:3IINFOTECH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:532628 Share Price ÷ Book Value per Share (both in INR)

= 4.12 ÷ 1.79

2.3x

* Primary Listing of 3i Infotech.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 3i Infotech is overvalued based on assets compared to the IN Software industry average.
X
Value checks
We assess 3i Infotech's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. 3i Infotech has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3IINFOTECH Future Performance

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

  • No analysts cover 3i Infotech, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is 3i Infotech expected to grow at an attractive rate?
  • 3i Infotech's earnings growth is positive but not above the low risk savings rate of 7.6%.
Growth vs Market Checks
  • 3i Infotech's earnings growth is positive but not above the India market average.
  • Unable to compare 3i Infotech's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:3IINFOTECH Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:3IINFOTECH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 3%
India Software Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
India Software Industry Revenue Growth Rate Market Cap Weighted Average 12.1%
India Market Earnings Growth Rate Market Cap Weighted Average 18.5%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:3IINFOTECH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:3IINFOTECH Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 11,080 554
2018-09-30 10,400 608
2018-06-30 10,013 678
2018-03-31 9,984 927 704
2017-12-31 9,674 797
2017-09-30 9,779 767
2017-06-30 9,880 826
2017-03-31 10,100 1,294 947
2016-12-31 10,200 -7,248
2016-09-30 10,584 -8,295
2016-06-30 11,061 -9,555
2016-03-31 11,256 1,991 -5,490

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 3i Infotech's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
  • Unable to determine if 3i Infotech is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:3IINFOTECH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from 3i Infotech Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:3IINFOTECH Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 0.30
2018-09-30 0.35
2018-06-30 0.40
2018-03-31 0.44
2017-12-31 0.57
2017-09-30 0.53
2017-06-30 0.60
2017-03-31 0.77
2016-12-31 -7.25
2016-09-30 -10.79
2016-06-30 -14.98
2016-03-31 -8.82

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if 3i Infotech will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess 3i Infotech's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
3i Infotech has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3IINFOTECH Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare 3i Infotech's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 3i Infotech has delivered over 20% year on year earnings growth in the past 5 years.
  • 3i Infotech's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • 3i Infotech's 1-year earnings growth is negative, it can't be compared to the IN Software industry average.
Earnings and Revenue History
3i Infotech's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from 3i Infotech Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:3IINFOTECH Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 11,079.50 553.80 256.90
2018-09-30 10,399.90 608.40 256.90
2018-06-30 10,012.90 677.50 256.90
2018-03-31 9,984.10 704.00 256.90
2017-12-31 9,674.30 797.20 263.20
2017-09-30 9,779.10 767.20 263.20
2017-06-30 9,879.70 825.80
2017-03-31 10,100.10 947.30 263.10
2016-12-31 10,200.20 -7,247.80 306.90
2016-09-30 10,584.20 -8,295.10
2016-06-30 11,061.30 -9,554.50
2016-03-31 11,255.80 -5,489.60 333.20
2015-12-31 11,591.50 -6,458.30 1,313.90
2015-09-30 11,923.90 -8,668.30 1,313.90
2015-06-30 12,550.10 -9,475.70
2015-03-31 13,440.00 -9,811.00 372.00
2014-12-31 13,733.90 -6,874.40 1,503.30
2014-09-30 13,978.60 -4,642.20 1,503.30
2014-06-30 13,709.50 -3,774.70
2014-03-31 13,078.90 -3,623.90 1,503.30
2013-12-31 13,109.40 -3,369.40 1,652.50
2013-09-30 13,308.60 -3,332.50 1,652.50
2013-06-30 13,419.60 -4,018.00
2013-03-31 13,113.60 -4,902.20 1,761.60
2012-12-31 13,273.90 -6,828.60 2,353.10
2012-09-30 13,135.10 -7,477.00 2,353.10
2012-06-30 14,715.50 -5,531.40 2,353.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst 3i Infotech has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • 3i Infotech used its assets more efficiently than the IN Software industry average last year based on Return on Assets.
  • 3i Infotech has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess 3i Infotech's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
3i Infotech has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3IINFOTECH Health

 How is 3i Infotech's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up 3i Infotech's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 3i Infotech is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • 3i Infotech's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of 3i Infotech's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from 3i Infotech Company Filings, last reported 3 months ago.

NSEI:3IINFOTECH Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,713.30 8,724.80 2,348.90
2018-09-30 2,713.30 8,724.80 2,348.90
2018-06-30 2,552.70 8,475.60 489.10
2018-03-31 2,552.70 8,475.60 489.10
2017-12-31 2,087.30 8,977.90 1,583.10
2017-09-30 2,087.30 8,977.90 1,583.10
2017-06-30 1,802.40 9,267.40 1,865.60
2017-03-31 1,802.60 9,286.20 1,190.50
2016-12-31 1,319.30 9,287.30 1,102.60
2016-09-30 1,319.30 9,287.30 1,102.60
2016-06-30 3,130.00 7,167.60 642.70
2016-03-31 1,147.40 9,246.00 622.60
2015-12-31 -5,133.80 19,279.80 295.90
2015-09-30 -5,133.80 19,279.80 295.90
2015-06-30 -3,445.10 20,250.00 228.80
2015-03-31 -3,328.10 24,445.50 228.80
2014-12-31 2,526.30 21,642.30 250.10
2014-09-30 2,526.30 21,642.30 250.10
2014-06-30 6,017.50 23,446.60 612.20
2014-03-31 6,095.50 26,692.90 612.10
2013-12-31 9,530.80 21,361.60 380.90
2013-09-30 9,530.80 21,361.60 380.90
2013-06-30 9,201.00 20,836.80 510.90
2013-03-31 9,240.00 23,977.30 510.90
2012-12-31 9,267.20 21,251.30 655.70
2012-09-30 9,267.20 21,251.30 655.70
2012-06-30 11,673.10 21,947.50 1,075.10
  • 3i Infotech's level of debt (321.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (225.7% vs 321.6% today).
  • Debt is not well covered by operating cash flow (10.6%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess 3i Infotech's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. 3i Infotech has a total score of 1/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3IINFOTECH Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from 3i Infotech dividends.
If you bought ₹2,000 of 3i Infotech shares you are expected to receive ₹0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate 3i Infotech's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate 3i Infotech's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:3IINFOTECH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
India Software Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1400 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:3IINFOTECH Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2013-02-01 0.000 0.000
2012-11-05 0.000 0.000
2012-08-13 0.000 0.000
2012-05-16 0.000 0.000
2011-04-25 1.500 6.797
2010-04-23 1.500 2.627
2010-03-31 1.500 1.946
2009-04-27 1.500 1.920
2009-04-23 1.500 3.559

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as 3i Infotech has not reported any payouts.
  • Unable to verify if 3i Infotech's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of 3i Infotech's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as 3i Infotech has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess 3i Infotech's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can 3i Infotech afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. 3i Infotech has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3IINFOTECH Management

 What is the CEO of 3i Infotech's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Padmanabhan Iyer
COMPENSATION ₹19,270,000
AGE 54
TENURE AS CEO 2.7 years
CEO Bio

Mr. Padmanabhan 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. Iyer has been Chief Financial Officer of 3i Infotech Limited since November 11, 2014. He served as Acting Chief Executive Officer at 3i Infotech Limited since June 07, 2016 until August 11, 2016 and served as its President. Mr. Iyer serves as the Chief Executive Officer and President for Elegon Infotech Limited China. Mr. Iyer headed the Technology Services and Managed Services businesses and the product development for Elegon Infotech ’s Banking, ERP and Insurance businesses, before which he headed the BPO division. He served as the President of Finance at 3i Infotech Limited. He was Head - Assets Back-office Processing Group of the IT Enabled Services Division. Mr. Iyer has held senior management positions in organizations such as Ispat Industries, the ITC Group, Caprihans India and Reliance Communications, among others He has profound knowledge and experience in the techno-financial arena. His career in Information Technology, banking and financial services spans over 27 years. He has completed the Advanced Masters Program in Management of Global Enterprises conducted by the Globally Distributed Work Foundation, a consortium of the Indian Institute of Management Bangalore (IIMB); SDA Bocconi, Milan; City University of Hong Kong; and the UCLA Anderson School of Management, US. He holds a Master's degree in Financial Management from the Jamnalal Bajaj Institute of Management Studies , University of Mumbai and has completed his Inter (Accounts Group) from the Institute of Chartered Accountants of India.

CEO Compensation
  • Padmanabhan's compensation has been consistent with company performance over the past year.
  • Padmanabhan's remuneration is higher than average for companies of similar size in India.
Management Team

Padmanabhan Iyer

TITLE
MD, Global CEO
COMPENSATION
₹19M
AGE
54
TENURE
2.7 yrs

Rajeev Limaye

TITLE
Company Secretary
COMPENSATION
₹3M
TENURE
2.8 yrs

Sagar Thakurdesai

TITLE
Global Head of Human Resource

Rakesh Doshi

TITLE
Executive VP and Global Head of Financial Services & Insurance

Krish Narayanaswami

TITLE
Executive VP & Global Head of Banking Products

Suryanarayan Kasichainula

TITLE
Executive VP & Global Head of ERP Product

Mohua Sengupta

TITLE
Executive VP & Global Head of IT Services

Babu Venkatesh

TITLE
Chief Executive Officer of Professional Access
Board of Directors Tenure

Average tenure and age of the 3i Infotech board of directors in years:

2.1
Average Tenure
58
Average Age
  • The average tenure for the 3i Infotech board of directors is less than 3 years, this suggests a new board.
Board of Directors

Ashok Shah

TITLE
Chairman
COMPENSATION
₹1M
AGE
68
TENURE
3.5 yrs

Padmanabhan Iyer

TITLE
MD, Global CEO
COMPENSATION
₹19M
AGE
54
TENURE
2.9 yrs

Shashank Desai

TITLE
Independent Non-Executive Director
COMPENSATION
₹1M
AGE
62
TENURE
4.4 yrs

Gautam Dutta

TITLE
Nominee Director
AGE
54
TENURE
1.3 yrs

Anjoo Navalkar

TITLE
Additional Non-Executive Director
TENURE
0.4 yrs

Avaya Mohapatra

TITLE
Nominee Director
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess 3i Infotech's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 3i Infotech has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3IINFOTECH News

Simply Wall St News

Calculating The Intrinsic Value Of 3i Infotech Limited (NSE:3IINFOTECH)

by estimating the company's future cash flows and discounting them to their present value. … I will be using the Discounted Cash Flow (DCF) model! … We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows

Simply Wall St -

Should We Be Delighted With 3i Infotech Limited's (NSE:3IINFOTECH) ROE Of 21%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.21. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Some 3i Infotech Shareholders Are Down 50%

After all, the share price is down 50% in that time, significantly under-performing the market. … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining.

Simply Wall St -

Do You Know What 3i Infotech Limited's (NSE:3IINFOTECH) P/E Ratio Means?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … That is equivalent to an earnings yield of about 11%. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

3i Infotech Limited (NSE:3IINFOTECH) Earns Among The Best Returns In Its Industry

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St -

Could The 3i Infotech Limited (NSE:3IINFOTECH) Ownership Structure Tell Us Something Useful?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned. … With a market capitalization of ₹6.1b, 3i Infotech is a small cap stock, so it might not be well known by many institutional investors.

Simply Wall St -

Does 3i Infotech Limited's (NSE:3IINFOTECH) P/E Ratio Signal A Buying Opportunity?

The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … How Do I Calculate A Price To Earnings Ratio … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Should You Expect 3i Infotech Limited (NSE:3IINFOTECH) To Continue Delivering An ROE Of 27%?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.27 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

How 3i Infotech Limited (NSE:3IINFOTECH) Can Impact Your Portfolio Volatility

Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Why 3i Infotech Limited's (NSE:3IINFOTECH) Ownership Structure Is Important

The impact of a company's ownership structure affects both its short- and long-term performance. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders. … While this may be more interesting for long-term investors, short-term investors can also benefit by paying attention to when these institutions trade in order to take advantage of the heightened volatility.

Simply Wall St -

3IINFOTECH Company Info

Description

3i Infotech Limited provides IP based software solutions and information technology services in India and internationally. The company offers Kastle Universal Lending System, a solution that automates and manages application processing for retail financing; Kastle CRx, a financial analysis and risk rating tool to assess and monitor a borrower’s credit worthiness; Kastle Core Banking, a solution that provides various banking operations; Kastle Factoring, a Web-based and platform-independent solution; Factor/SQL, a factoring software solution; Kastle Treasury, a treasury management solution; Kastle Risk Management, an Web-based market risk management solution; AMLOCK, a Web-based anti-money laundering, and financial crime detection and management solution; Kastle Internet Banking; KASTLE Asset Liability Management solution; Kastle Business Intelligence; and Kastle Integrated Risk Management solutions. It also provides PREMIA General Insurance, PREMIA Life, PREMIA Health, PREMIA Astra General Insurance Suite, PREMIA Astra Core Modules, and PREMIA Life Insurance 11J to manage insurance business processes; MFund Plus Suite, an investment management solution; MFund, a multi-currency, multi-fund portfolio accounting, valuation, and performance evaluation system; Premia Pension solution; PREMIA Group Life solution; and PREMIA e-portal, an insurance-specific Web portal solution, as well as enterprise resource planning solutions under the Orion name. In addition, it offers GeSTup, a cloud based application for filing good and services tax returns; Customer Reach and User Experience; Accelerate. Enable. Scale; Conversational; Blockchain; Momenta; HybridNxT; Maggie; and Flexib solutions. It serves customers in banking, insurance, capital markets, asset and wealth management, government, manufacturing, distribution, telecom, and healthcare industry verticals. The company was founded in 1993 and is headquartered in Navi Mumbai, India.

Details
Name: 3i Infotech Limited
3IINFOTECH
Exchange: NSEI
Founded: 1993
₹7,129,403,841
1,616,644,862
Website: http://www.3i-infotech.com
Address: 3i Infotech Limited
Tower # 5,
3rd to 6th Floors,
Navi Mumbai,
Maharashtra, 400703,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 532628 Equity Shares Mumbai Stock Exchange IN INR 22. Apr 2005
NSEI 3IINFOTECH Equity Shares National Stock Exchange of India IN INR 22. Apr 2005
Number of employees
Current staff
Staff numbers
0
3i Infotech employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 12:51
End of day share price update: 2019/04/22 00:00
Last earnings filing: 2019/01/18
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.