NSEI:3IINFOTECH

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with mediocre 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


Market Performance


7 Day Return

-4.8%

3IINFOTECH

1.0%

IN Software

2.3%

IN Market


1 Year Return

-40.3%

3IINFOTECH

-27.8%

IN Software

0.3%

IN Market

Return vs Industry: 3IINFOTECH underperformed the Indian Software industry which returned -27.8% over the past year.

Return vs Market: 3IINFOTECH underperformed the Indian Market which returned 0.3% over the past year.


Shareholder returns

3IINFOTECHIndustryMarket
7 Day-4.8%1.0%2.3%
30 Day-11.1%0.2%2.2%
90 Day-23.1%-10.8%-2.7%
1 Year-40.3%-40.3%-24.6%-27.8%2.3%0.3%
3 Year-68.3%-68.3%-8.1%-15.6%20.7%14.7%
5 Year-73.2%-73.2%13.3%-3.0%41.4%28.2%

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?

5.51x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate 3IINFOTECH's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate 3IINFOTECH's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 3IINFOTECH is good value based on its PE Ratio (5.5x) compared to the Software industry average (12.3x).

PE vs Market: 3IINFOTECH is good value based on its PE Ratio (5.5x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low 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 good value based on its PB Ratio (1x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

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

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 3IINFOTECH's forecast earnings growth (1.6% per year) is below the savings rate (7.6%).

Earnings vs Market: 3IINFOTECH's earnings (1.6% per year) are forecast to grow slower than the Indian market (18.2% per year).

High Growth Earnings: 3IINFOTECH's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if 3IINFOTECH's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 3IINFOTECH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if 3IINFOTECH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

51.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 3IINFOTECH has become profitable over the past 5 years, growing earnings by 51.1% per year.

Accelerating Growth: 3IINFOTECH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 3IINFOTECH had negative earnings growth (-6.5%) over the past year, making it difficult to compare to the Software industry average (3.5%).


Return on Equity

High ROE: 3IINFOTECH's Return on Equity (19.4%) is considered low.


Return on Assets

ROA vs Industry: 3IINFOTECH's Return on Assets is below or equal to the Software industry average last year.


Return on Capital Employed

ROCE Improving: 3IINFOTECH has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is 3i Infotech's financial position?


Financial Position Analysis

Short Term Liabilities: 3IINFOTECH's short term assets (₹5.3B) exceeds its short term liabilities (₹3.3B)

Long Term Liabilities: 3IINFOTECH's short term assets (5.3B) do not cover its long term liabilities (8.3B)


Debt to Equity History and Analysis

Debt Level: 3IINFOTECH's debt to equity ratio (258.1%) is considered high

Reducing Debt: 3IINFOTECH's debt to equity ratio has reduced from 356.6% to 258.1% over the past 5 years.

Debt Coverage: Insufficient data to determine if 3IINFOTECH's debt is well covered by operating cash flow.

Interest Coverage: 3IINFOTECH's interest payments on its debt are well covered by EBIT (3.6x coverage).


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).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

2.2yrs

Average board tenure


CEO

Padmanabhan Iyer (55yo)

3.2yrs

Tenure

₹19,270,000

Compensation

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 ...


CEO Compensation Analysis

Compensation vs. Market: Padmanabhan's total compensation ($USD0.00) is too low to compare against companies of similar size in the Indian market ($USD25.26K).

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


Board Age and Tenure

2.2yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 3IINFOTECH's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Babu Venkatesh

    Chief Executive Officer of Professional Access

    • Tenure: 0yrs
  • Padmanabhan Iyer (55yo)

    MD, Global CEO

    • Tenure: 3.2yrs
    • Compensation: ₹19.27m
  • Rakesh Doshi

    President & Global Head of Financial Services and Insurance Products Business

    • Tenure: 0yrs
  • Krish Narayanaswami

    President & Global Head of Banking Products Business

    • Tenure: 0yrs
  • Rajeev Limaye

    Company Secretary

    • Tenure: 3.3yrs
    • Compensation: ₹2.72m
  • Suryanarayan Kasichainula

    President & Global Head of ERP Prod. Bus.

    • Tenure: 0yrs
  • Sagar Thakurdesai

    Global Head of Human Resource

    • Tenure: 0yrs

Board Members

  • Padmanabhan Iyer (55yo)

    MD, Global CEO

    • Tenure: 3.2yrs
    • Compensation: ₹19.27m
  • Anjoo Navalkar

    Additional Non-Executive Director

    • Tenure: 0.9yrs
  • Ashok Shah (69yo)

    Independent Chairman

    • Tenure: 4yrs
    • Compensation: ₹1.05m
  • Rajeev Sinha (56yo)

    Nominee Director

    • Tenure: 0.3yrs
  • Shashank Desai (63yo)

    Independent Non-Executive Director

    • Tenure: 4.9yrs
    • Compensation: ₹1.05m
  • Avaya Mohapatra

    Nominee Director

    • Tenure: 0.9yrs

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: ₹3.266b
  • 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 solution that automates and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 12:47
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.