NSEI:NIITLTD

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

₹43.9b

Last Updated

2021/08/03 15:27 UTC

Data Sources

Company Financials +

Executive Summary

NIIT Limited provides learning and knowledge solutions to individuals, enterprises, and institutions worldwide. More Details


Snowflake Analysis

Flawless balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has NIIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NIITLTD is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: NIITLTD's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

6.9%

NIITLTD

3.4%

IN IT

2.5%

IN Market


1 Year Return

252.4%

NIITLTD

67.0%

IN IT

56.1%

IN Market

Return vs Industry: NIITLTD exceeded the Indian IT industry which returned 63.6% over the past year.

Return vs Market: NIITLTD exceeded the Indian Market which returned 56.8% over the past year.


Shareholder returns

NIITLTDIndustryMarket
7 Day6.9%3.4%2.5%
30 Day4.9%4.4%3.6%
90 Day98.2%16.6%13.9%
1 Year261.5%252.4%69.9%67.0%58.2%56.1%
3 Year319.9%257.5%115.8%103.0%39.9%32.7%
5 Year369.6%299.9%204.5%176.0%85.9%70.4%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NIIT undervalued compared to its fair value and its price relative to the market?

25.37x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NIITLTD (₹329.1) is trading above our estimate of fair value (₹169.17)

Significantly Below Fair Value: NIITLTD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NIITLTD is good value based on its PE Ratio (25.4x) compared to the Indian IT industry average (33x).

PE vs Market: NIITLTD is poor value based on its PE Ratio (25.4x) compared to the Indian market (23.7x).


Price to Earnings Growth Ratio

PEG Ratio: NIITLTD is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: NIITLTD is overvalued based on its PB Ratio (2.9x) compared to the IN IT industry average (2.1x).


Future Growth

How is NIIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIITLTD's forecast earnings growth (13.6% per year) is above the savings rate (6.8%).

Earnings vs Market: NIITLTD's earnings (13.6% per year) are forecast to grow slower than the Indian market (20.7% per year).

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

Revenue vs Market: NIITLTD's revenue (17.5% per year) is forecast to grow faster than the Indian market (12.4% per year).

High Growth Revenue: NIITLTD's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has NIIT performed over the past 5 years?

34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIITLTD has a large one-off gain of ₹482.8M impacting its June 30 2021 financial results.

Growing Profit Margin: NIITLTD's current net profit margins (17.4%) are lower than last year (32.3%).


Past Earnings Growth Analysis

Earnings Trend: NIITLTD's earnings have grown significantly by 34.9% per year over the past 5 years.

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

Earnings vs Industry: NIITLTD had negative earnings growth (-36.5%) over the past year, making it difficult to compare to the IT industry average (18.9%).


Return on Equity

High ROE: NIITLTD's Return on Equity (11.1%) is considered low.


Financial Health

How is NIIT's financial position?


Financial Position Analysis

Short Term Liabilities: NIITLTD's short term assets (₹17.6B) exceed its short term liabilities (₹4.8B).

Long Term Liabilities: NIITLTD's short term assets (₹17.6B) exceed its long term liabilities (₹294.3M).


Debt to Equity History and Analysis

Debt Level: NIITLTD's debt to equity ratio (1.7%) is considered satisfactory.

Reducing Debt: NIITLTD's debt to equity ratio has reduced from 23.2% to 1.7% over the past 5 years.

Debt Coverage: NIITLTD's debt is well covered by operating cash flow (835%).

Interest Coverage: NIITLTD earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is NIIT current dividend yield, its reliability and sustainability?

0.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NIITLTD's dividend (0.76%) is higher than the bottom 25% of dividend payers in the Indian market (0.34%).

High Dividend: NIITLTD's dividend (0.76%) is low compared to the top 25% of dividend payers in the Indian market (1.38%).


Stability and Growth of Payments

Stable Dividend: NIITLTD's dividend payments have been volatile in the past 10 years.

Growing Dividend: NIITLTD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.3%), NIITLTD's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Sapnesh Lalla (55 yo)

4yrs

Tenure

₹10,808,977

Compensation

Mr. Sapnesh Kumar Lalla has been Chief Executive Officer of NIIT Limited since August 1, 2017. Mr. Lalla served as Senior Vice President of Business Development - Corporate Learning Group at NIIT Ltd. sinc...


CEO Compensation Analysis

Compensation vs Market: Sapnesh's total compensation ($USD145.38K) is below average for companies of similar size in the Indian market ($USD301.76K).

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


Leadership Team

Experienced Management: NIITLTD's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: NIITLTD's board of directors are considered experienced (4.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NIITLTD insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

NIIT Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NIIT Limited
  • Ticker: NIITLTD
  • Exchange: NSEI
  • Founded: 1981
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹43.852b
  • Shares outstanding: 133.27m
  • Website: https://www.niit.com

Number of Employees


Location

  • NIIT Limited
  • 85, Sector 32, Institutional
  • Gurugram
  • Haryana
  • 122001
  • India

Listings


Biography

NIIT Limited provides learning and knowledge solutions to individuals, enterprises, and institutions worldwide. It offers managed training services, such as custom curriculum design and content development...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 15:27
End of Day Share Price2021/08/03 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.