NSEI:NIITLTD

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet average 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.2%

NIITLTD

7.4%

IN IT

1.8%

IN Market


1 Year Return

45.0%

NIITLTD

24.8%

IN IT

9.5%

IN Market

Return vs Industry: NIITLTD exceeded the Indian IT industry which returned 24.8% over the past year.

Return vs Market: NIITLTD exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

NIITLTDIndustryMarket
7 Day4.2%7.4%1.8%
30 Day37.5%8.6%2.2%
90 Day47.8%31.6%13.9%
1 Year60.4%45.0%28.4%24.8%11.6%9.5%
3 Year56.7%34.6%99.0%87.6%2.2%-2.7%
5 Year123.6%92.1%93.9%75.6%46.0%35.1%

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?

7.34x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NIITLTD (₹137.05) is trading above our estimate of fair value (₹43.1)

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 (7.3x) compared to the IN IT industry average (16.8x).

PE vs Market: NIITLTD is good value based on its PE Ratio (7.3x) compared to the Indian market (16.3x).


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's PB Ratio (1.3x) is in line with the IN IT industry average.


Next Steps

Future Growth

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

-41.1%

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 (-41.1% per year).

Earnings vs Market: NIITLTD's earnings are forecast to decline over the next 3 years (-41.1% per year).

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

Revenue vs Market: NIITLTD's revenue (7.3% per year) is forecast to grow slower than the Indian market (11.7% per year).

High Growth Revenue: NIITLTD's revenue (7.3% 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


Next Steps

Past Performance

How has NIIT performed over the past 5 years?

72.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NIITLTD has high quality earnings.

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


Past Earnings Growth Analysis

Earnings Trend: NIITLTD has become profitable over the past 5 years, growing earnings by 72.9% per year.

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 (-75.2%) over the past year, making it difficult to compare to the IT industry average (-7.2%).


Return on Equity

High ROE: NIITLTD's Return on Equity (18.9%) is considered low.


Next Steps

Financial Health

How is NIIT's financial position?


Financial Position Analysis

Short Term Liabilities: NIITLTD's short term assets (₹15.6B) exceed its short term liabilities (₹4.1B).

Long Term Liabilities: NIITLTD's short term assets (₹15.6B) exceed its long term liabilities (₹858.1M).


Debt to Equity History and Analysis

Debt Level: NIITLTD's debt to equity ratio (3.5%) is considered satisfactory.

Reducing Debt: NIITLTD's debt to equity ratio has reduced from 18.3% to 3.5% over the past 5 years.

Debt Coverage: NIITLTD's debt is well covered by operating cash flow (87.5%).

Interest Coverage: NIITLTD's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

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

7.28%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NIITLTD's dividend (7.28%) is higher than the bottom 25% of dividend payers in the Indian market (0.55%).

High Dividend: NIITLTD's dividend (7.28%) is in the top 25% of dividend payers in the Indian market (2.22%)


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 reasonable payout ratio (53.5%), NIITLTD's dividend payments are 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?

3.1yrs

Average management tenure


CEO

Sapnesh Lalla (54 yo)

3.08yrs

Tenure

₹14,942,180

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 ($USD203.18K) is about average for companies of similar size in the Indian market ($USD287.25K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rajendra Pawar
Co-Founder & Non-Executive Chairmanno data₹9.68m16.85%
₹ 3.3b
Sapnesh Lalla
Chief Executive Officer3.08yrs₹14.94m0.18%
₹ 35.0m
Vijay Thadani
Co-Founder5.42yrs₹23.56m0.11%
₹ 22.1m
Parappil Rajendran
Co-Founder30.33yrs₹46.33m0.33%
₹ 63.8m
Sanjay Mal
Executive VP & CFO0.25yr₹5.51mno data
Kapil Saurabh
VP & Head of M&A and Investor Relationsno data₹8.15mno data
Deepak Bansal
Compliance Officer & Company Secretary4.17yrs₹4.50mno data
Udai Singh
President of Product4.58yrs₹19.88m0.074%
₹ 14.4m
Bimaljeet Bhasin
President of Skills & Careers Business (SNC) India Operations1.75yrs₹13.41mno data
Sunil Sirohi
Chief Information officer & Head of Technology Services - Organisation Indiano datano datano data
Prateek Chatterjee
Senior Vice President of Corporate Communications & Marketing and Marketing Professionalno datano datano data
Chockalingam Murugan
Chief Marketing Officer and National Head of Marketing & Sales Enablemno datano datano data

3.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: NIITLTD's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rajendra Pawar
Co-Founder & Non-Executive Chairmanno data₹9.68m16.85%
₹ 3.3b
Vijay Thadani
Co-Founder5.42yrs₹23.56m0.11%
₹ 22.1m
Parappil Rajendran
Co-Founder30.33yrs₹46.33m0.33%
₹ 63.8m
Ashish Kashyap
Non-Executive Independent Director1.25yrs₹1.15mno data
Anand Sudarshan
Non Executive Independent Director6.92yrs₹4.32mno data
Geeta Mathur
Non Executive Independent Director6.42yrs₹3.90mno data
Ravinder Singh
Non-Executive Independent Director1.5yrs₹2.15m0.00043%
₹ 83.6k

5.9yrs

Average Tenure

67yo

Average Age

Experienced Board: NIITLTD's board of directors are considered experienced (5.9 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: ₹19.451b
  • Shares outstanding: 141.67m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:31
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2020/03/31


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.