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NIIT Technologies

NSEI:NIITTECH
Snowflake Description

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

The Snowflake is generated from 30 checks in 5 different areas, read more below.
NIITTECH
NSEI
₹81B
Market Cap
  1. Home
  2. IN
  3. Software
Company description

NIIT Technologies Limited provides IT solutions primarily in India, the Americas, Europe, Asia, the Middle East, and Africa. The last earnings update was 91 days ago. More info.


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NIITTECH Share Price and Events
7 Day Returns
1.3%
NSEI:NIITTECH
2.6%
IN IT
1.1%
IN Market
1 Year Returns
32.4%
NSEI:NIITTECH
25.3%
IN IT
-0.9%
IN Market
NIITTECH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
NIIT Technologies (NIITTECH) 1.3% -1% 7.3% 32.4% 163% 228%
IN IT 2.6% 4.7% 8.9% 25.3% 48.1% 80%
IN Market 1.1% 1.8% 5.7% -0.9% 41% 72.2%
1 Year Return vs Industry and Market
  • NIITTECH outperformed the IT industry which returned 25.3% over the past year.
  • NIITTECH outperformed the Market in India which returned -0.9% over the past year.
Price Volatility
NIITTECH
Industry
5yr Volatility vs Market

Value

 Is NIIT Technologies 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 Technologies 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 Technologies.

NSEI:NIITTECH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 16.5%
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:NIITTECH
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 1.05
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 35%) (0.19%))
1.037
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.037 * 8.6%)
16.47%

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

The calculations below outline how an intrinsic value for NIIT Technologies 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:NIITTECH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 16.47%)
2019 2,957.75 Analyst x8 2,539.47
2020 3,874.60 Analyst x10 2,856.21
2021 4,686.50 Analyst x10 2,966.16
2022 5,415.29 Est @ 15.55% 2,942.72
2023 6,127.43 Est @ 13.15% 2,858.83
2024 6,830.27 Est @ 11.47% 2,736.08
2025 7,533.40 Est @ 10.29% 2,590.98
2026 8,246.89 Est @ 9.47% 2,435.26
2027 8,980.43 Est @ 8.89% 2,276.85
2028 9,742.98 Est @ 8.49% 2,120.85
Present value of next 10 years cash flows ₹26,323.41
NSEI:NIITTECH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹9,742.98 × (1 + 7.55%) ÷ (16.47% – 7.55%)
₹117,458.43
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹117,458.43 ÷ (1 + 16.47%)10
₹25,568.35
NSEI:NIITTECH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹26,323.41 + ₹25,568.35
₹51,891.75
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹51,891.75 / 61.78
₹839.89
NSEI:NIITTECH Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹839.89
Current discount Discount to share price of ₹1,314.50
= -1 x (₹1,314.50 - ₹839.89) / ₹839.89
-56.5%

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

  • The current share price of NIIT Technologies 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 Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are NIIT Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:NIITTECH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹62.12
NSEI:NIITTECH Share Price ** NSEI (2019-04-18) in INR ₹1314.5
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.19x
India Market PE Ratio Median Figure of 2,736 Publicly-Listed Companies 16.34x

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

** Primary Listing of NIIT Technologies.

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

= NSEI:NIITTECH Share Price ÷ EPS (both in INR)

= 1314.5 ÷ 62.12

21.16x

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

  • NIIT Technologies is overvalued based on earnings compared to the IN IT industry average.
  • NIIT Technologies is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does NIIT Technologies's expected growth come at a high price?
Raw Data
NSEI:NIITTECH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.16x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
16%per year
India IT Industry PEG Ratio Median Figure of 21 Publicly-Listed IT Companies 1.32x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.16x ÷ 16%

1.32x

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

  • NIIT Technologies is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on NIIT Technologies's assets?
Raw Data
NSEI:NIITTECH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹318.19
NSEI:NIITTECH Share Price * NSEI (2019-04-18) in INR ₹1314.5
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,627 Publicly-Listed Companies 1.11x
NSEI:NIITTECH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:NIITTECH Share Price ÷ Book Value per Share (both in INR)

= 1314.5 ÷ 318.19

4.13x

* Primary Listing of NIIT Technologies.

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

  • NIIT Technologies is overvalued based on assets compared to the IN IT industry average.
X
Value checks
We assess NIIT Technologies'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 Technologies has a total score of 0/6, 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 Technologies expected to perform in the next 1 to 3 years based on estimates from 13 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
16%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is NIIT Technologies expected to grow at an attractive rate?
  • NIIT Technologies's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • NIIT Technologies's earnings growth is positive but not above the India market average.
  • NIIT Technologies's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:NIITTECH Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:NIITTECH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 16%
NSEI:NIITTECH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 13.6%
India IT Industry Earnings Growth Rate Market Cap Weighted Average 9.6%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*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:NIITTECH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:NIITTECH Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 47,937 6,211 5,594 12
2020-03-31 42,599 5,325 4,846 13
2019-03-31 36,923 4,192 4,125 13
NSEI:NIITTECH Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 34,928 3,839
2018-09-30 32,776 3,593
2018-06-30 31,074 3,147
2018-03-31 29,914 3,824 2,802
2017-12-31 29,473 2,942
2017-09-30 28,846 2,812
2017-06-30 28,403 2,728
2017-03-31 28,021 4,723 2,501
2016-12-31 27,421 2,290
2016-09-30 27,270 2,408
2016-06-30 27,041 2,542
2016-03-31 26,879 3,601 2,700

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • NIIT Technologies's earnings are expected to grow by 16% yearly, however this is not considered high growth (20% yearly).
  • NIIT Technologies's revenue is expected to grow by 13.6% 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:NIITTECH 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 13 Analyst Estimates (S&P Global) See Below

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

NSEI:NIITTECH Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 90.72 102.10 85.70 13.00
2020-03-31 78.54 84.80 74.50 14.00
2019-03-31 66.81 68.10 64.81 14.00
NSEI:NIITTECH Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 62.12
2018-09-30 58.46
2018-06-30 51.24
2018-03-31 45.63
2017-12-31 48.14
2017-09-30 45.81
2017-06-30 44.49
2017-03-31 40.80
2016-12-31 37.34
2016-09-30 39.34
2016-06-30 41.64
2016-03-31 44.19

*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 Technologies is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess NIIT Technologies'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 Technologies has a total score of 3/6, 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 Technologies 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 Technologies'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 Technologies's year on year earnings growth rate has been positive over the past 5 years.
  • NIIT Technologies's 1-year earnings growth exceeds its 5-year average (30.5% vs 15.5%)
  • NIIT Technologies's earnings growth has exceeded the IN IT industry average in the past year (30.5% vs 24.5%).
Earnings and Revenue History
NIIT Technologies'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 Technologies Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:NIITTECH 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 34,928.00 3,839.00 818.00
2018-09-30 32,776.00 3,593.00 818.00
2018-06-30 31,074.00 3,147.00
2018-03-31 29,914.00 2,802.00 818.00
2017-12-31 29,473.00 2,942.00 809.00
2017-09-30 28,846.00 2,812.00 809.00
2017-06-30 28,402.90 2,728.00
2017-03-31 28,021.00 2,501.00 776.00
2016-12-31 27,421.05 2,289.63 889.49
2016-09-30 27,270.05 2,407.63 850.49
2016-06-30 27,040.60 2,541.50 48.00
2016-03-31 26,879.00 2,700.00 826.00
2015-12-31 26,089.96 1,834.66 4,572.18
2015-09-30 25,255.96 1,574.66 4,442.18
2015-06-30 24,359.96 1,293.66 4,253.18
2015-03-31 23,724.96 1,140.66 747.21
2014-12-31 23,496.89 1,933.35 3,968.64
2014-09-30 23,416.89 1,982.35 3,960.64
2014-06-30 23,406.89 2,205.35 3,914.64
2014-03-31 23,049.89 2,305.35 3,805.86
2013-09-30 21,808.59 2,282.19 3,811.76
2013-06-30 20,936.59 2,089.19 3,667.76
2013-03-31 20,213.59 2,132.19 3,597.76
2012-12-31 19,276.76 2,028.41 4,972.45
2012-09-30 18,462.76 2,108.41 4,838.45
2012-06-30 17,172.76 2,135.41 3,224.45

*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 Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • NIIT Technologies used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
  • NIIT Technologies has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess NIIT Technologies'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 Technologies has a total score of 6/6, 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 Technologies'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 Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • NIIT Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NIIT Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of NIIT Technologies'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 114.5x 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 Technologies Company Filings, last reported 3 months ago.

NSEI:NIITTECH Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 19,676.00 155.00 8,260.00
2018-09-30 18,889.00 147.00 8,524.00
2018-06-30 18,375.00 208.00 6,849.00
2018-03-31 17,962.00 225.00 7,820.00
2017-12-31 17,692.00 233.00 6,906.00
2017-09-30 16,933.00 192.00 7,191.00
2017-06-30 16,894.00 118.00 6,162.00
2017-03-31 17,102.00 254.00 7,219.00
2016-12-31 18,267.00 112.00 5,686.00
2016-09-30 17,686.00 114.00 4,603.00
2016-06-30 16,552.70 63.80 4,102.00
2016-03-31 15,919.00 104.00 4,094.00
2015-12-31 16,360.00 93.00 3,118.00
2015-09-30 15,525.00 568.00 2,950.00
2015-06-30 14,752.00 84.00 2,624.00
2015-03-31 13,762.16 86.15 3,246.02
2014-12-31 14,785.00 612.00 3,358.00
2014-09-30 13,950.00 148.00 1,951.00
2014-06-30 13,950.00 148.00 1,951.00
2014-03-31 13,427.73 91.39 2,762.87
2013-09-30
2013-06-30 11,114.20 97.35 3,149.32
2013-03-31 11,114.20 97.35 3,149.32
2012-12-31 11,149.00 92.00 2,856.00
2012-09-30 10,447.00 307.00 2,320.00
2012-06-30 9,934.00 422.00 2,669.00
  • NIIT Technologies's level of debt (0.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.7% vs 0.8% today).
  • Debt is well covered by operating cash flow (2467.1%, greater than 20% of total debt).
  • NIIT Technologies earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess NIIT Technologies'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 Technologies 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 Technologies'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
1.14%
Current annual income from NIIT Technologies dividends. Estimated to be 1.92% next year.
If you bought ₹2,000 of NIIT Technologies shares you are expected to receive ₹23 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?
  • NIIT Technologies's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
  • NIIT Technologies's dividend is below the markets top 25% of dividend payers in India (1.94%).
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:NIITTECH 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 13 Analyst Estimates (S&P Global) See Below
India IT Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 1.6%
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:NIITTECH Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 26.85 11.00
2020-03-31 23.70 11.00
2019-03-31 21.52 11.00
NSEI:NIITTECH Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-08-31 15.000 1.227
2018-05-04 15.000 1.306
2017-08-23 12.500 1.816
2017-05-05 12.500 2.363
2016-08-03 10.000 2.377
2016-05-06 10.000 2.034
2015-07-10 9.500 1.891
2015-05-05 9.500 2.463
2014-06-13 9.000 2.359
2014-05-09 9.000 2.336
2013-07-01 8.500 2.629
2012-07-02 8.000 2.943
2011-07-01 7.500 3.370
2010-07-15 7.000 3.634
2009-05-26 6.500 4.512
2009-04-20 6.500 8.243

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

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of NIIT Technologies's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.4x coverage).
X
Income/ dividend checks
We assess NIIT Technologies'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 Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. NIIT Technologies has a total score of 5/6, 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 Technologies'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
Sudhir Singh
COMPENSATION ₹6,756,080
TENURE AS CEO 1.3 years
CEO Bio

Mr. Sudhir Kumar Singh has been Chief Executive Officer of NIIT Technologies Ltd since January 19, 2018. Mr. Singh served as Chief Operating Officer of Capital Markets Business at Headstrong Inc and served as its Senior Vice President and Business Leader of Capital Markets, Non-Americas & Morgan Stanley. Mr. Singh served as Managing Director for India at Avalara, Inc. He joined Genpact in June 2010 and served as Senior Vice President and Business Leader for the Capital Markets business focusing on Europe and APAC and Morgan Stanley strategic accounts. Prior to joining Avalara, he worked at Infosys Technologies Limited and Tata Consultancy Services as a group and Program Manager. On a functional basis, he was responsible for requirements gathering, estimation, design, development, quality assurance, systems implementation, process Improvement and project/program management. Prior to this role, he served as Head of the Banking, Financial Services and Insurance ITO Business for Genpact. Prior to this he spent close to a decade with Infosys in the US. At Infosys he was an Invitee to the Infosys Global Management Committee from 2006 to 2010, the Head of the Infosys South-West US Geo Unit and the Founder and Practice Leader of the Infosys Payments and Cards Practice within the BFSI Vertical. His areas of interest/expertise include the Financial Technologies and the evolving e-payments and e-commerce space. He has worked extensively across the BPO-ITO intersect. Mr. Singh joined Levers (H.L.L./Unilever) from Campus at IIM-Calcutta and spent 6 years with them as a Brand Manager and Sales manager before transitioning to his first stint with Infosys as a Business Development Manager in the South-West US. Mr. Singh is an alumnus of the Indian Institute of Management and the Institute of Technology, Bachelor of Science in Mathematics & Physics from Bundelkhand University from 1993 to 1996, Masters in Computer Applications in Computer Applications form Birla Institute of Technology and Master of Business Administration (MBA) in Marketing Management from Institute of Management Technology, Ghaziabad from 1993 to 2015.

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

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

1.8
Average Tenure
61.5
Average Age
  • The average tenure for the NIIT Technologies management team is less than 2 years, this suggests a new team.
Management Team

Rajendra Pawar

TITLE
Co-Founder & Chairman
COMPENSATION
₹27M
AGE
67

Sudhir Singh

TITLE
Chief Executive Officer
COMPENSATION
₹7M
TENURE
1.3 yrs

Arvind Thakur

TITLE
Vice Chairman & MD
COMPENSATION
₹34M
AGE
63

Lalit Sharma

TITLE
Compliance Officer
TENURE
3.8 yrs

Sanjay Mal

TITLE
Chief Financial Officer
TENURE
0.8 yrs

M. Natarajan

TITLE
General Manager of Accounts
AGE
51

Bhaskar Chavali

TITLE
Chief Technology Officer
COMPENSATION
₹12M
AGE
60
TENURE
1.3 yrs

Abhinandan Singh

TITLE
Head of Investor Relations and M&A

Vish Viswanathan

TITLE
Chief People Officer
COMPENSATION
₹9M
AGE
57
TENURE
2.4 yrs

Vijay Kumar

TITLE
Group Executive Vice President of Mergers & Acqusitions
COMPENSATION
₹4M
AGE
66
TENURE
16 yrs
Board of Directors Tenure

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

6.9
Average Tenure
67
Average Age
  • The tenure for the NIIT Technologies board of directors is about average.
Board of Directors

Rajendra Pawar

TITLE
Co-Founder & Chairman
COMPENSATION
₹27M
AGE
67

Arvind Thakur

TITLE
Vice Chairman & MD
COMPENSATION
₹34M
AGE
63
TENURE
1.3 yrs

Surendra Singh

TITLE
Non-Executive Independent Director
COMPENSATION
₹2M
AGE
81
TENURE
15.3 yrs

Amit Sharma

TITLE
Independent Non-Executive Director
COMPENSATION
₹3M
AGE
68

Ashwani Puri

TITLE
Independent Non-Executive Director
COMPENSATION
₹3M
TENURE
6.9 yrs

Vijay Thadani

TITLE
Non-Executive Director
COMPENSATION
₹3M
AGE
67
TENURE
15.3 yrs

Holly Morris

TITLE
Independent Director
COMPENSATION
₹35K
AGE
65
TENURE
4.5 yrs
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 (₹)
20. Nov 18 Sell Agendra Kumar Individual 15. Nov 18 15. Nov 18 -2,000 ₹1,155.22 ₹-2,310,440
17. Aug 18 Sell Dhiraj Kukreja Individual 13. Aug 18 13. Aug 18 -1,200 ₹1,290.00 ₹-1,548,000
14. Aug 18 Sell Dhiraj Kukreja Individual 08. Aug 18 08. Aug 18 -3,500 ₹1,300.00 ₹-4,550,000
09. Aug 18 Sell Lalit Sharma Individual 07. Aug 18 07. Aug 18 -5,000 ₹1,267.53 ₹-6,337,650
06. Aug 18 Sell Agendra Kumar Individual 02. Aug 18 03. Aug 18 -3,450 ₹1,252.05 ₹-4,319,561
06. Aug 18 Sell Shyam Viswanathan Individual 02. Aug 18 06. Aug 18 -8,000 ₹1,266.82 ₹-10,134,525
06. Aug 18 Sell Arvind Mehrotra Individual 01. Aug 18 02. Aug 18 -9,750 ₹1,256.01 ₹-12,244,609
03. Aug 18 Sell Jyoti Singh Individual 03. Aug 18 03. Aug 18 -4,200 ₹1,255.00 ₹-5,271,000
03. Aug 18 Sell Abhinandan Singh Individual 03. Aug 18 03. Aug 18 -3,300 ₹1,292.08 ₹-4,263,854
02. Aug 18 Sell Deepak Khosla Individual 01. Aug 18 01. Aug 18 -13,985 ₹1,249.51 ₹-17,474,446
X
Management checks
We assess NIIT Technologies'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 Technologies 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

Do Insiders Own Lots Of Shares In NIIT Technologies Limited (NSE:NIITTECH)?

Every investor in NIIT Technologies Limited (NSE:NIITTECH) should be aware of the most powerful shareholder groups. … As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'. … NIIT Technologies has a market capitalization of ₹81b, so we would expect some institutional investors to have noticed the stock.

Simply Wall St -

Announcing: NIIT Technologies (NSE:NIITTECH) Stock Increased An Energizing 234% In The Last Five Years

One great example is NIIT Technologies Limited (NSE:NIITTECH) which saw its share price drive 234% higher over five years. … During five years of share price growth, NIIT Technologies achieved compound earnings per share (EPS) growth of 10% per year. … This EPS growth is lower than the 27% average annual increase in the share price.

Simply Wall St -

Does NIIT Technologies Limited (NSE:NIITTECH) Generate Enough Cash?

If you are currently a shareholder in NIIT Technologies Limited (NSE:NIITTECH), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … Today we will examine NIIT Technologies’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … NIIT Technologies’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

Simply Wall St -

A Holistic Look At NIIT Technologies Limited (NSE:NIITTECH)

Help shape the future of investing tools and receive a $20 prize! … As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

Calculating The Fair Value Of NIIT Technologies Limited (NSE:NIITTECH)

In this article I am going to calculate the intrinsic value of NIIT Technologies Limited (NSE:NIITTECH). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Does NIIT Technologies Limited's (NSE:NIITTECH) 30% Earnings Growth Make It An Outperformer?

In this article, I will take a look at NIIT Technologies Limited's (NSE:NIITTECH) track record on a high level, to give you some insight into how the company has been performing against its historical trend and its industry peers. … Check out our latest analysis for NIIT Technologies. … Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 15%, indicating the rate at which NIITTECH is growing has accelerated

Simply Wall St -

Why NIIT Technologies Limited (NSE:NIITTECH) Looks Like A Quality Company

Our data shows NIIT Technologies has a return on equity of 20% for the last year. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.20 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are Insiders Selling NIIT Technologies Limited (NSE:NIITTECH) Stock?

So before you buy or sell NIIT Technologies Limited (NSE:NIITTECH), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At NIIT Technologies. … All up, insiders sold more shares in NIIT Technologies than they bought, over the last year.

Simply Wall St -

Can We See Significant Institutional Ownership On The NIIT Technologies Limited (NSE:NIITTECH) Share Register?

If you want to know who really controls NIIT Technologies Limited (NSE:NIITTECH), then you'll have to look at the makeup of its share registry. … With a market capitalization of ₹69b, NIIT Technologies is a decent size, so it is probably on the radar of institutional investors. … institutional investors have bought into the company.

Simply Wall St -

Is NIIT Technologies Limited (NSE:NIITTECH) Undervalued After Accounting For Its Future Growth?

NIIT Technologies Limited (NSE:NIITTECH) is considered a high growth stock. … However its last closing price of ₹1056.05 left investors wondering whether this growth has already been factored into the share price. … One reason why investors are attracted to NIITTECH is the high growth potential in the near future

Simply Wall St -

Company Info

Description

NIIT Technologies Limited provides IT solutions primarily in India, the Americas, Europe, Asia, the Middle East, and Africa. The company offers cloud services; data and analytics services; digital process transformation services; and digital services, as well as designs and delivers experience through e-commerce, user experience design, portals, social integration, multichannel offerings, and mobility solutions. It also provides intelligent automation services, robotics process automation, application development and management, enterprise application integration, geographic information systems, and infrastructure management services, as well as core, specialized, automated, and COE testing services. In addition, the company offers business process services comprising reference data management, finance and accounting management, contract loading, and airline passenger revenue accounting services. It serves travel and transportation, insurance, banking and financial services, manufacturing and distribution, and media industries. NIIT Technologies Limited has a collaboration with Microsoft Corporation for providing cloud-led transformation services to its enterprise clients. The company was formerly known as NIIT Investments Limited and changed its name to NIIT Technologies Limited in May 2004. NIIT Technologies Limited was incorporated in 1992 and is based in Noida, India.

Details
Name: NIIT Technologies Limited
NIITTECH
Exchange: NSEI
Founded: 1992
₹81,214,902,373
61,783,874
Website: http://www.niit-tech.com
Address: NIIT Technologies Limited
Tapasya Corp Heights,
Plot No. - 5,
Noida,
Uttar Pradesh, 201301,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI NIITTECH Equity Shares National Stock Exchange of India IN INR 30. Aug 2004
BSE 532541 Equity Shares Mumbai Stock Exchange IN INR 30. Aug 2004
Number of employees
Current staff
Staff numbers
10,144
NIIT Technologies employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 12:48
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2019/01/18
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.