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NIIT

NSEI:NIITLTD
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NIITLTD
NSEI
₹18B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

NIIT Limited, a skills and talent development company, provides training and development solutions to individuals, corporations, and institutions worldwide. The last earnings update was 89 days ago. More info.


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  • NIIT has significant price volatility in the past 3 months.
NIITLTD Share Price and Events
7 Day Returns
-2.6%
NSEI:NIITLTD
1%
IN IT
-1.2%
IN Market
1 Year Returns
-7.3%
NSEI:NIITLTD
19.1%
IN IT
-2.5%
IN Market
NIITLTD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NIIT (NIITLTD) -2.6% 17.8% 13.7% -7.3% 28.3% 222.5%
IN IT 1% 5.1% 9.2% 19.1% 49.1% 81.5%
IN Market -1.2% 1.4% 4.8% -2.5% 40% 69.9%
1 Year Return vs Industry and Market
  • NIITLTD underperformed the IT industry which returned 19.1% over the past year.
  • NIITLTD underperformed the Market in India which returned -2.5% over the past year.
Price Volatility
NIITLTD
Industry
5yr Volatility vs Market

Value

 Is NIIT 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 NIIT 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 NIIT.

NSEI:NIITLTD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.8%
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:NIITLTD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.056 (1 + (1- 35%) (7.89%))
1.074
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.074 * 8.6%)
16.78%

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

The calculations below outline how an intrinsic value for NIIT 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:NIITLTD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.78%)
2019 718.00 Analyst x1 614.81
2020 479.33 Analyst x3 351.45
2021 714.33 Analyst x3 448.48
2022 840.33 Est @ 17.64% 451.76
2023 963.12 Est @ 14.61% 443.36
2024 1,083.45 Est @ 12.49% 427.07
2025 1,202.74 Est @ 11.01% 405.95
2026 1,322.68 Est @ 9.97% 382.27
2027 1,444.97 Est @ 9.25% 357.59
2028 1,571.22 Est @ 8.74% 332.95
Present value of next 10 years cash flows ₹4,215.68
NSEI:NIITLTD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹1,571.22 × (1 + 7.55%) ÷ (16.78% – 7.55%)
₹18,298.99
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹18,298.99 ÷ (1 + 16.78%)10
₹3,877.66
NSEI:NIITLTD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹4,215.68 + ₹3,877.66
₹8,093.34
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹8,093.34 / 167.41
₹48.34
NSEI:NIITLTD Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:NIITLTD represents 1.00331x of BSE:500304
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00331x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 48.34 x 1.00331
₹48.50
Value per share (INR) From above. ₹48.50
Current discount Discount to share price of ₹106.10
= -1 x (₹106.10 - ₹48.50) / ₹48.50
-118.7%

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

  • The current share price of NIIT is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 NIIT's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NIIT's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:NIITLTD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹4.97
BSE:500304 Share Price ** BSE (2019-04-23) in INR ₹105.75
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.21x
India Market PE Ratio Median Figure of 2,738 Publicly-Listed Companies 16.18x

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

** Primary Listing of NIIT.

NSEI:NIITLTD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:500304 Share Price ÷ EPS (both in INR)

= 105.75 ÷ 4.97

21.29x

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

  • NIIT is overvalued based on earnings compared to the IN IT industry average.
  • NIIT is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does NIIT's expected growth come at a high price?
Raw Data
NSEI:NIITLTD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.29x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
26.1%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.32x
India Market PEG Ratio Median Figure of 585 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:NIITLTD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.29x ÷ 26.1%

0.82x

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

  • NIIT is good value based on expected growth next year.
Price based on value of assets
What value do investors place on NIIT's assets?
Raw Data
NSEI:NIITLTD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹47.10
BSE:500304 Share Price * BSE (2019-04-23) in INR ₹105.75
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.35x
India Market PB Ratio Median Figure of 3,629 Publicly-Listed Companies 1.1x
NSEI:NIITLTD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:500304 Share Price ÷ Book Value per Share (both in INR)

= 105.75 ÷ 47.10

2.25x

* Primary Listing of NIIT.

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

  • NIIT is overvalued based on assets compared to the IN IT industry average.
X
Value checks
We assess NIIT'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 IT 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 IT industry average (and greater than 0)? (1 check)
  5. NIIT has a total score of 1/6, 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.

Future Performance

 How is NIIT expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

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
26.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NIIT expected to grow at an attractive rate?
  • NIIT's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • NIIT's earnings growth is expected to exceed the India market average.
  • NIIT's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:NIITLTD Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:NIITLTD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 26.1%
NSEI:NIITLTD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 14%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
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:NIITLTD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:NIITLTD Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 12,119 1,172 1,554 4
2020-03-31 10,607 945 1,307 4
2019-03-31 9,228 950 971 4
NSEI:NIITLTD Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 8,933 829
2018-09-30 8,750 833
2018-06-30 8,549 700
2018-03-31 8,505 874 625
2017-12-31 9,893 729
2017-09-30 10,472 592
2017-06-30 11,876 747
2017-03-31 8,452 1,107 409
2016-12-31 10,650 527
2016-09-30 10,600 604
2016-06-30 10,341 596
2016-03-31 10,069 696 672

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NIIT's earnings are expected to grow significantly at over 20% yearly.
  • NIIT's revenue is expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
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:NIITLTD 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 4 Analyst Estimates (S&P Global) See Below

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

NSEI:NIITLTD Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 9.43 9.90 9.10 3.00
2020-03-31 7.93 8.40 7.60 3.00
2019-03-31 5.87 6.60 5.50 3.00
NSEI:NIITLTD Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 4.97
2018-09-30 5.00
2018-06-30 4.20
2018-03-31 3.76
2017-12-31 4.44
2017-09-30 3.68
2017-06-30 4.59
2017-03-31 2.47
2016-12-31 3.18
2016-09-30 3.53
2016-06-30 3.51
2016-03-31 4.07

*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.
  • NIIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess NIIT'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.
NIIT has a total score of 4/6, 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.

Past Performance

  How has NIIT 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 NIIT's growth in the last year to its industry (IT).
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.
  • NIIT has delivered over 20% year on year earnings growth in the past 5 years.
  • NIIT's 1-year earnings growth is less than its 5-year average (13.7% vs 40.9%)
  • NIIT's earnings growth has not exceeded the IN IT industry average in the past year (13.7% vs 24.5%).
Earnings and Revenue History
NIIT'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 NIIT Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:NIITLTD 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 8,933.29 829.46 2,208.69
2018-09-30 8,750.06 832.57 2,301.77
2018-06-30 8,548.94 700.00 1,648.00
2018-03-31 8,505.03 624.65 2,433.11
2017-12-31 9,892.62 729.43 5,744.03
2017-09-30 10,471.62 592.43 5,744.03
2017-06-30 11,875.60 747.40 4,747.20
2017-03-31 8,451.51 409.29 2,438.13
2016-12-31 10,649.52 527.36 4,230.46
2016-09-30 10,599.52 604.36 4,230.46
2016-06-30 10,340.52 596.36 4,230.46
2016-03-31 10,068.52 672.36 4,220.46
2015-12-31 9,914.82 -1,017.32 5,425.81
2015-09-30 9,773.82 -1,136.32 5,425.81
2015-06-30 9,652.80 -1,241.30 3,172.40
2015-03-31 9,573.82 -1,385.32 4,441.24
2014-12-31 9,667.96 266.70 5,318.64
2014-09-30 9,521.96 260.70 5,318.64
2014-06-30 9,540.96 277.70 5,318.64
2014-03-31 9,509.96 177.70 5,318.64
2013-09-30 9,386.98 57.58 4,923.55
2013-06-30 9,553.98 53.58 4,923.55
2013-03-31 9,607.98 262.58 4,923.55
2012-06-30 11,665.79 1,085.60 5,217.06

*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.
  • NIIT has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • NIIT used its assets less efficiently than the IN IT industry average last year based on Return on Assets.
  • NIIT has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NIIT'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 IT 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.
NIIT has a total score of 2/6, 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.

Health

 How is NIIT'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 NIIT's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NIIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NIIT's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NIIT'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 covered by short term assets, assets are 4x 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 NIIT Company Filings, last reported 3 months ago.

NSEI:NIITLTD Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 7,929.18 1,388.04 3,267.67
2018-09-30 7,929.18 1,388.04 3,267.67
2018-06-30 7,325.50 1,134.90 1,281.00
2018-03-31 7,325.57 1,786.09 1,274.89
2017-12-31
2017-09-30
2017-06-30 8,661.80 1,509.80 1,270.30
2017-03-31 6,933.44 1,802.29 1,262.80
2016-12-31
2016-09-30
2016-06-30 8,136.28 1,956.40 885.71
2016-03-31 8,136.28 1,956.40 885.71
2015-12-31
2015-09-30
2015-06-30 7,357.50 1,365.10 869.10
2015-03-31 7,357.48 1,593.63 869.10
2014-12-31
2014-09-30
2014-06-30 6,818.20 1,279.59 945.82
2014-03-31 6,818.20 1,279.59 945.82
2013-09-30
2013-06-30 6,726.37 1,555.93 1,062.24
2013-03-31 6,726.37 1,555.93 1,062.24
2012-06-30 6,659.15 1,086.94 1,001.86
  • NIIT's level of debt (17.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (20.2% vs 17.5% today).
  • Debt is well covered by operating cash flow (62.9%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess NIIT'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. NIIT has a total score of 5/6, 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.

Dividends

 What is NIIT'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 NIIT dividends. Estimated to be 1.09% next year.
If you bought ₹2,000 of NIIT 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 NIIT's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate NIIT'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:NIITLTD 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 4 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.5%
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:NIITLTD Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 2.30 1.00
2020-03-31 0.00 1.00
2019-03-31 0.00 1.00
NSEI:NIITLTD Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2016-05-10 0.000 0.000
2016-01-15 0.000 0.000
2015-10-15 0.000 0.000
2015-07-17 0.000 0.000
2014-06-12 1.600 3.526
2014-05-21 1.600 3.262
2013-07-01 1.600 6.984
2012-06-06 1.600 5.632
2012-05-09 1.600 3.956
2011-07-04 1.500 3.270
2010-05-07 1.400 2.372
2010-04-15 1.400 2.054
2009-05-27 1.300 2.001
2009-04-24 1.300 3.980

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

  • Unable to perform a dividend volatility check as NIIT has not reported any payouts.
  • Unable to verify if NIIT's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of NIIT's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as NIIT has not reported any payouts.
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).
X
Income/ dividend checks
We assess NIIT'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 NIIT afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NIIT has a total score of 1/6, see the detailed checks below.


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

Management

 What is the CEO of NIIT'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
Sapnesh Lalla
COMPENSATION ₹17,529,195
AGE 52
TENURE AS CEO 1.7 years
CEO Bio

Mr. Sapnesh Kumar Lalla has been Chief Executive Officer of NIIT Ltd. since August 1, 2017. Mr. Lalla served as Senior Vice President of Business Development - Corporate Learning Group at NIIT Ltd. since July 13, 2017 until August 1, 2017 and served as its Group President of Corporate Learning Group until July 13, 2017. Mr. Lalla served as Chief Executive of Learning Solutions for Enterprise at NIIT Ltd. Mr. Lalla is responsible for continuing the rapid growth and development of every area of NIIT's Learning Solutions for Enterprise business, throughout the geographies of North America, the United Kingdom and Europe. He is a Pioneer for NIIT in the US market. Mr. Lalla has enjoyed a long and accomplished tenure while at NIIT. Since joining NIIT in 1992, he began his career with it in the technical side of the business. Rising through the ranks, he relocated to the United States in 1996 as a Group Consultant of NIIT and served as its Business Manager since 1999. He served as a Director at NIIT Ltd.

CEO Compensation
  • Insufficient data for Sapnesh to compare compensation growth.
  • Sapnesh's remuneration is about average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the NIIT management team in years:

2.4
Average Tenure
52
Average Age
  • The tenure for the NIIT management team is about average.
Management Team

Rajendra Pawar

TITLE
Co-Founder & Chairman
COMPENSATION
₹940K
AGE
67

Sapnesh Lalla

TITLE
Chief Executive Officer
COMPENSATION
₹18M
AGE
52
TENURE
1.7 yrs

Vijay Thadani

TITLE
Co-Founder
COMPENSATION
₹14M
AGE
67

Raju Rajendran

TITLE
Co-Founder
COMPENSATION
₹14M
AGE
65

Amit Roy

TITLE
Chief Financial Officer
COMPENSATION
₹4M
AGE
67
TENURE
2.1 yrs

Sunil Sirohi

TITLE
Chief Information officer & Head of Technology Services - Organisation India
AGE
51

Deepak Bansal

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹3M
TENURE
2.8 yrs

Kshitij Jain

TITLE
VP and Head of Marketing & Sales
AGE
40

Udai Singh

TITLE
Chief Strategy Officer
AGE
50
TENURE
3.2 yrs

Venkata Durga Ravi Patibanda

TITLE
National Head of Delivery Operations & Senior VP
AGE
51
Board of Directors Tenure

Average tenure and age of the NIIT board of directors in years:

5.3
Average Tenure
65
Average Age
  • The tenure for the NIIT board of directors is about average.
Board of Directors

Rajendra Pawar

TITLE
Co-Founder & Chairman
COMPENSATION
₹940K
AGE
67

Vijay Thadani

TITLE
Co-Founder
COMPENSATION
₹14M
AGE
67
TENURE
4 yrs

Raju Rajendran

TITLE
Co-Founder
COMPENSATION
₹14M
AGE
65
TENURE
28.9 yrs

Anand Sudarshan

TITLE
Non Executive Independent Director
COMPENSATION
₹1M
AGE
58
TENURE
5.5 yrs

Geeta Mathur

TITLE
Non Executive Independent Director
COMPENSATION
₹1M
AGE
52
TENURE
5 yrs

Ravinder Singh

TITLE
Non-Executive Independent Director
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 (₹)
22. Jun 18 Sell Rajan Venkataraman Individual 20. Jun 18 20. Jun 18 -26,600 ₹95.91 ₹-2,551,155
X
Management checks
We assess NIIT'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. NIIT 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.

News

Simply Wall St News

How Good Is NIIT Limited (NSE:NIITLTD), When It Comes To ROE?

Our data shows NIIT has a return on equity of 11% for the last year. … That means that for every ₹1 worth of shareholders' equity, it generated ₹0.11 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Introducing NIIT (NSE:NIITLTD), The Stock That Zoomed 190% In The Last Five Years

One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … During the five years of share price growth, NIIT moved from a loss to profitability. … Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

Simply Wall St -

With 14% Earnings Growth, Did NIIT Limited (NSE:NIITLTD) Outperform The Industry?

Today I will assess NIITLTD's latest performance announced on 31 December 2018 and compare these figures to its longer term trend and industry movements. … NIITLTD's trailing twelve-month earnings (from 31 December 2018) of ₹829m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 41%, indicating the rate at which NIITLTD is growing has slowed down

Simply Wall St -

Should You Care About NIIT Limited’s (NSE:NIITLTD) Cash Levels?

I’ve analysed below, the health and outlook of NIIT’s cash flow, which will help you understand the stock from a cash standpoint. … I will be analysing NIIT’s FCF by looking at its FCF yield and its operating cash flow growth. … The yield will tell us whether the stock is generating enough cash to compensate for the risk investors take on by holding a single stock, which I will compare to the market index.

Simply Wall St -

Could NIIT Limited's (NSE:NIITLTD) Investor Composition Influence The Stock Price?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … NIIT is a smaller company with a market capitalization of ₹18b, so it may still be flying under the radar of many institutional investors. … We can zoom in on the different ownership groups, to learn more about NIITLTD

Simply Wall St -

Why We’re Not Keen On NIIT Limited’s (NSE:NIITLTD) 3.9% Return On Capital

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Understanding Return On Capital Employed (ROCE). … The formula for calculating the return on capital employed is:

Simply Wall St -

Did NIIT Limited (NSE:NIITLTD) Insiders Sell Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in NIIT Limited (NSE:NIITLTD). … It is perfectly legal for company insiders, including board members, to buy and sell stock in a company.

Simply Wall St -

A Holistic Look At NIIT Limited (NSE:NIITLTD)

NIIT Limited (NSE:NIITLTD) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … In the case of NIITLTD, it

Simply Wall St -

NIIT Limited (NSE:NIITLTD): Can Growth Justify Its January Share Price?

NIIT Limited (NSE:NIITLTD) closed yesterday at ₹83.95, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … NIIT is poised for significantly high earnings growth in the near future

Simply Wall St -

What Does NIIT Limited's (NSE:NIITLTD) P/E Ratio Tell You?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … We'll show how you can use NIIT Limited's (NSE:NIITLTD) P/E ratio to inform your assessment of the investment opportunity. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

NIIT Limited, a skills and talent development company, provides training and development solutions to individuals, corporations, and institutions worldwide. The company offers managed training services, such as custom curriculum design and content development, learning administration, learning delivery, strategic sourcing, learning technology, and advisory services; and various learning and talent development programs in the areas of technology, banking, finance and insurance, digital marketing, data sciences and analytics, professional life skills, business process excellence, management education, and multi-sectoral vocational skills. Its brands portfolio comprises the training.com, a learning platform for career programs, which are delivered live by industry experts; Talent Pipeline as a Service, a just-in-time job ready talent for organization; NIIT.tv, a digital learning platform; NIIT international of finance banking and insurance training limited designed for banking, insurance, and financial services; NIIT Imperia, which provides management programs in the areas of marketing, sales, finance, operations, HR, law, brand and advertising, international marketing and business, strategy, general management, digital marketing, taxation, and IT; and NIIT UNIQUA that offers outsourcing of training solutions for the BPM industry. The company’s brands portfolio also includes NIIT NGuru that offers various learning solutions for schools comprising interactive classrooms for teachers, as well as math lab, mobile science labs, IT wizard programs, and learning labs for students; and Practice Plus, a platform for assessment solution of learning, as well as Quick School, an education resource planning solution. Additionally, it provides StackRoute, which focuses on creating programmers; DigiNxt that addresses the opportunities for digital transformation needs of the IT industry. NIIT Limited was founded in 1981 and is headquartered in Gurugram, India.

Details
Name: NIIT Limited
NIITLTD
Exchange: NSEI
Founded: 1981
₹17,603,500,713
167,413,226
Website: http://www.niit.com
Address: NIIT Limited
85, Sector 32, Institutional,
Gurugram,
Haryana, 122001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 500304 Equity Shares Mumbai Stock Exchange IN INR 27. Oct 1998
NSEI NIITLTD Equity Shares National Stock Exchange of India IN INR 27. Oct 1998
Number of employees
Current staff
Staff numbers
2,475
NIIT employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 12:50
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2019/01/24
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.