NSEI:3IINFOTECH

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with proven track record.


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: 3IINFOTECH's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.6%

3IINFOTECH

-3.8%

IN Software

-2.9%

IN Market


1 Year Return

-64.9%

3IINFOTECH

-51.4%

IN Software

-29.3%

IN Market

Return vs Industry: 3IINFOTECH underperformed the Indian Software industry which returned -51.4% over the past year.

Return vs Market: 3IINFOTECH underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

3IINFOTECHIndustryMarket
7 Day-3.6%-3.8%-2.9%
30 Day-32.5%-38.2%-26.5%
90 Day-32.5%-38.1%-28.5%
1 Year-64.9%-64.9%-50.5%-51.4%-27.9%-29.3%
3 Year-73.3%-73.3%-48.6%-53.1%-15.4%-20.0%
5 Year-78.2%-78.2%-39.1%-48.0%-3.3%-8.3%

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

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: 3IINFOTECH (₹1.35) is trading below our estimate of fair value (₹5.45)

Significantly Below Fair Value: 3IINFOTECH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 3IINFOTECH is good value based on its PE Ratio (2.9x) compared to the Software industry average (7x).

PE vs Market: 3IINFOTECH is good value based on its PE Ratio (2.9x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 3IINFOTECH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3IINFOTECH is overvalued based on its PB Ratio (0.7x) compared to the IN Software industry average (0.6x).


Next Steps

Future Growth

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

13.8%

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?

64.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 3IINFOTECH has high quality earnings.

Growing Profit Margin: 3IINFOTECH's current net profit margins (6.7%) are higher than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: 3IINFOTECH has become profitable over the past 5 years, growing earnings by 64.2% per year.

Accelerating Growth: 3IINFOTECH's earnings growth over the past year (40.3%) is below its 5-year average (64.2% per year).

Earnings vs Industry: 3IINFOTECH earnings growth over the past year (40.3%) exceeded the Software industry -4%.


Return on Equity

High ROE: Whilst 3IINFOTECH's Return on Equity (23.27%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is 3i Infotech's financial position?


Financial Position Analysis

Short Term Liabilities: 3IINFOTECH's short term assets (₹5.4B) exceed its short term liabilities (₹3.3B).

Long Term Liabilities: 3IINFOTECH's short term assets (₹5.4B) do not cover its long term liabilities (₹8.9B).


Debt to Equity History and Analysis

Debt Level: 3IINFOTECH's debt to equity ratio (258.4%) is considered high.

Reducing Debt: 3IINFOTECH's debt to equity ratio has reduced from 816.5% to 258.4% over the past 5 years.


Balance Sheet

Inventory Level: 3IINFOTECH has a low level of unsold assets or inventory.

Debt Coverage by Assets: 3IINFOTECH's debt is not covered by short term assets (assets are 0.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 3IINFOTECH is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: Insufficient data to determine if 3IINFOTECH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 3IINFOTECH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3IINFOTECH's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 3IINFOTECH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3IINFOTECH's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 3IINFOTECH is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 3IINFOTECH'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?

2.6yrs

Average board tenure


CEO

Padmanabhan Nemmara Iyer (55yo)

3.58s

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 ($USD280.34K) is above average for companies of similar size in the Indian market ($USD48.50K).

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 CEO3.58yrs₹21.13m0.00012% 2.7k
Anjoo Navalkar
Additional Non-Executive Director1.33yrs₹126.00kno data
Ashok Shah
Independent Chairman4.42yrs₹1.10mno data
Rajeev Sinha
Nominee Director0.75yrno datano data
Shashank Desai
Independent Non-Executive Director5.33yrs₹1.10mno data
Avaya Mohapatra
Nominee Director1.33yrsno datano data

2.6yrs

Average Tenure

62yo

Average Age

Experienced Board: 3IINFOTECH's board of directors are not considered experienced ( 2.6 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: 3IINFOTECH
  • Exchange: NSEI
  • Founded: 1993
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: ₹2.215b
  • Shares outstanding: 1.62b
  • Website: https://www.3i-infotech.com

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 browser based application to integrate and streamline the loan processing cycle; Kastle Treasury, a treasury management solution; Kastle Core Banking that provides various banking operations for commercial and consumer banking; Kastle Transaction Banking that enables cash and securities movement in the global financial system; Factor/SQL, a factoring software solution; Kastle Integrated Risk Management solution; AMLOCK, an anti-money laundering, and financial crime detection and management solution; Kastle Digital Banking solutions suite to cater the trends of banking and lending practices; and Kastle Business Intelligence, an enterprise analytics platform. It also provides general, life, and health insurance products under the PREMIA brand name; PREMIA Blogs; MFund Plus Suite, an investment management solution; MFund, a multi-currency, multi-fund portfolio accounting, valuation, and performance evaluation system; and PREMIA e-portal, an insurance-specific Web portal solution. In addition, the company offers enterprise resource planning solutions, including ORION enterprise suite, a solution that provides industry-specific solutions; ORION financial management solution, which streamlines and unifies financial management process; ORION HRMS and payroll to enhance employee productivity and organizational efficiency; and ORION Mobile ERP, a mobile application to integrate various business processes and modules. Further, it provides customer relationship management and B2C solutions under ORION brand name. It serves customers in banking, insurance, capital markets, asset and wealth management, government, manufacturing, retail, distribution, telecom, and healthcare industry verticals. The company was founded in 1993 and is headquartered in Navi Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 13:20
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.