NSEI:NIITLTD

Stock Analysis Report

Executive Summary

NIIT Limited provides training and development solutions to individuals, corporations, and institutions worldwide.

Rewards

PE ratio (1.3x) is below the Indian market (13.4x)

Revenue is forecast to grow 11.83% per year

Earnings grew by 1529.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -85.2% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.6%

NIITLTD

1.8%

IN IT

-0.8%

IN Market


1 Year Return

31.7%

NIITLTD

7.9%

IN IT

11.1%

IN Market

Return vs Industry: NIITLTD exceeded the Indian IT industry which returned 5.7% over the past year.

Return vs Market: NIITLTD exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

NIITLTDIndustryMarket
7 Day10.6%1.8%-0.8%
30 Day3.4%0.8%-2.3%
90 Day5.0%6.3%2.1%
1 Year38.6%31.7%10.7%7.9%13.1%11.1%
3 Year52.1%44.5%71.1%61.1%22.9%16.2%
5 Year147.5%135.2%57.0%42.5%34.9%22.6%

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?

1.32x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NIITLTD (₹107.25) is trading above our estimate of fair value (₹73.7)

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 (1.3x) compared to the IT industry average (11.3x).

PE vs Market: NIITLTD is good value based on its PE Ratio (1.3x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: NIITLTD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: NIITLTD is overvalued based on its PB Ratio (0.9x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

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

-85.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIITLTD's earnings are forecast to decline over the next 3 years (-85.2% per year).

Earnings vs Market: NIITLTD's earnings are forecast to decline over the next 3 years (-85.2% per year).

High Growth Earnings: NIITLTD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: NIITLTD's revenue (11.8% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: NIITLTD's revenue (11.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NIITLTD's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has NIIT performed over the past 5 years?

82.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIITLTD has a high level of non-cash earnings.

Growing Profit Margin: NIITLTD's current net profit margins are higher than last year (9.3%).


Past Earnings Growth Analysis

Earnings Trend: NIITLTD's earnings have grown significantly by 82.5% per year over the past 5 years.

Accelerating Growth: NIITLTD's earnings growth over the past year (1529.7%) exceeds its 5-year average (82.5% per year).

Earnings vs Industry: NIITLTD earnings growth over the past year (1529.7%) exceeded the IT industry 7.4%.


Return on Equity

High ROE: NIITLTD's Return on Equity (66.1%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NIIT's financial position?


Financial Position Analysis

Short Term Liabilities: NIITLTD's short term assets (₹20.9B) exceed its short term liabilities (₹4.1B).

Long Term Liabilities: NIITLTD's short term assets (₹20.9B) exceed its long term liabilities (₹893.9M).


Debt to Equity History and Analysis

Debt Level: NIITLTD's debt to equity ratio (2.9%) is considered satisfactory.

Reducing Debt: NIITLTD's debt to equity ratio has reduced from 20.2% to 2.9% over the past 5 years.

Debt Coverage: NIITLTD's debt is well covered by operating cash flow (40.9%).

Interest Coverage: NIITLTD's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: NIITLTD's debt is covered by short term assets (assets are 34.8x debt).


Next Steps

Dividend

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

4.67%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%0.6%markettop25%2.5%industryaverage1.6%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: NIITLTD's dividend (4.67%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: NIITLTD's dividend (4.67%) is in the top 25% of dividend payers in the Indian market (2.52%)


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 (6.2%), NIITLTD's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NIITLTD's dividends in 3 years are forecast to be covered by earnings (76.9% payout ratio).


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Sapnesh Lalla (53yo)

2.5yrs

Tenure

₹13,542,381

Compensation

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 J ...


CEO Compensation Analysis

Compensation vs Market: Sapnesh's total compensation ($USD189.37K) is below average for companies of similar size in the Indian market ($USD298.20K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rajendra Pawar
Co-Founder & Chairman0yrs₹820.00k16.87% 2.5b
Sapnesh Lalla
Chief Executive Officer2.5yrs₹13.54m0.18% 26.1m
Vijay Thadani
Co-Founder4.8yrs₹23.19m0.11% 16.2m
Parappil Rajendran
Co-Founder29.8yrs₹17.56m0.32% 47.2m
Amit Roy
Chief Financial Officer2.9yrs₹5.62m0.00071% 103.6k
Sunil Sirohi
Chief Information officer & Head of Technology Services - Organisation India0yrsno datano data
Deepak Bansal
Compliance Officer & Company Secretary3.6yrs₹2.87mno data
Kshitij Jain
VP and Head of Marketing & Sales0yrsno datano data
Ganesh Krishnamurthy
Head of Product Development& Deployment0yrsno datano data
Arjun Krishnan
Executive VP & Chief Corporate Management Services Officer2.8yrsno data0.062% 9.0m

2.9yrs

Average Tenure

53yo

Average Age

Experienced Management: NIITLTD's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajendra Pawar
Co-Founder & Chairman0yrs₹820.00k16.87% 2.5b
Vijay Thadani
Co-Founder4.8yrs₹23.19m0.11% 16.2m
Parappil Rajendran
Co-Founder29.8yrs₹17.56m0.32% 47.2m
Ashish Kashyap
Non-Executive Independent Director0.7yrsno datano data
Anand Sudarshan
Non Executive Independent Director6.3yrs₹1.24mno data
Geeta Mathur
Non Executive Independent Director5.8yrs₹1.42mno data
Ravinder Singh
Non-Executive Independent Director0.9yrsno data0.00057% 83.2k

5.3yrs

Average Tenure

66yo

Average Age

Experienced Board: NIITLTD's board of directors are considered experienced (5.3 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: ₹14.590b
  • Shares outstanding: 141.51m
  • Website: https://www.niit.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500304BSE (Mumbai Stock Exchange)YesEquity SharesININROct 1998
NIITLTDNSEI (National Stock Exchange of India)YesEquity SharesININROct 1998

Biography

NIIT Limited 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 and technology, learning delivery, strategic sourcing, and advisory services; and learning and talent development programs in banking, finance and insurance, retail sales enablement, management education, multi-sectoral vocational skills, digital media marketing, and programs in digital transformation technologies. Its brands portfolio comprises the training.com, a learning platform for career programs; 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 marketing, sales, finance, operations, HR, law, brand and advertising, international and digital marketing and business, strategy, general management, taxation, and IT areas; 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; and DigiNxt that addresses the opportunities for digital transformation needs of the IT industry. NIIT Limited has a collaboration agreement with Automation Anywhere to offer robotic process automation workshops for developers, students, and IT professionals. The company was founded in 1981 and is headquartered in Gurugram, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 12:56
End of Day Share Price2020/02/17 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.