NSEI:NIITTECH

Stock Analysis Report

Executive Summary

NIIT Technologies Limited operates as an information technology (IT) solutions organization in North America, Europe, the Middle East, and the Asia Pacific.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: NIITTECH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

NIITTECH

-2.2%

IN IT

-1.4%

IN Market


1 Year Return

43.5%

NIITTECH

4.0%

IN IT

6.4%

IN Market

Return vs Industry: NIITTECH exceeded the Indian IT industry which returned 4% over the past year.

Return vs Market: NIITTECH exceeded the Indian Market which returned 6.4% over the past year.


Shareholder returns

NIITTECHIndustryMarket
7 Day2.2%-2.2%-1.4%
30 Day-2.2%-1.2%-3.3%
90 Day26.5%7.1%0.4%
1 Year45.2%43.5%6.7%4.0%8.4%6.4%
3 Year376.5%354.0%67.3%57.6%20.9%14.1%
5 Year404.1%361.0%52.8%38.7%30.7%18.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

26.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NIITTECH (₹1889.4) is trading above our estimate of fair value (₹1097.15)

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


Price To Earnings Ratio

PE vs Industry: NIITTECH is poor value based on its PE Ratio (26.9x) compared to the IT industry average (10.9x).

PE vs Market: NIITTECH is poor value based on its PE Ratio (26.9x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: NIITTECH is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: NIITTECH is overvalued based on its PB Ratio (5x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is NIIT Technologies forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NIITTECH's forecast earnings growth (17.5% per year) is above the savings rate (6.5%).

Earnings vs Market: NIITTECH's earnings (17.5% per year) are forecast to grow slower than the Indian market (20.4% per year).

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

Revenue vs Market: NIITTECH's revenue (13.5% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: NIITTECH's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NIITTECH's Return on Equity is forecast to be high in 3 years time (22.3%)


Next Steps

Past Performance

How has NIIT Technologies performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: NIITTECH's current net profit margins (10.8%) are lower than last year (11%).


Past Earnings Growth Analysis

Earnings Trend: NIITTECH's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: NIITTECH's earnings growth over the past year (13.5%) is below its 5-year average (20.9% per year).

Earnings vs Industry: NIITTECH earnings growth over the past year (13.5%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: NIITTECH's Return on Equity (19.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NIIT Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: NIITTECH's short term assets (₹21.7B) exceed its short term liabilities (₹8.4B).

Long Term Liabilities: NIITTECH's short term assets (₹21.7B) exceed its long term liabilities (₹682.0M).


Debt to Equity History and Analysis

Debt Level: NIITTECH's debt to equity ratio (0.9%) is considered satisfactory.

Reducing Debt: NIITTECH's debt to equity ratio has reduced from 4.1% to 0.9% over the past 5 years.

Debt Coverage: NIITTECH's debt is well covered by operating cash flow (1439.1%).

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


Balance Sheet

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

Debt Coverage by Assets: NIITTECH's debt is covered by short term assets (assets are 104.7x debt).


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%0.6%markettop25%2.6%industryaverage1.6%forecastin3Years1.8%

Current dividend yield vs market & industry

Notable Dividend: NIITTECH's dividend (1.06%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: NIITTECH's dividend (1.06%) is low compared to the top 25% of dividend payers in the Indian market (2.61%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NIITTECH's dividends in 3 years are forecast to be well covered by earnings (37.6% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Sudhir Singh 0

2.1yrs

Tenure

0

Mr. Sudhir Singh has been Chief Executive Officer of NIIT Technologies Ltd since January 19, 2018 and has been its Executive Director since January 29, 2020. Mr. Singh served as Chief Operating Officer of ...


CEO Compensation Analysis

Compensation vs Market: Sudhir's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD634.25K).

Compensation vs Earnings: Insufficient data to compare Sudhir's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Sudhir Singh
CEO & Executive Director2.1yrsno data0.10% 117.0m
Lalit Sharma
Compliance Officer0yrsno datano data
Sanjay Mal
Executive Vice President of Finance0.3yrsno data0.0055% 6.3m
Ajay Kalra
Chief Financial Officer0.3yrsno datano data
M. Natarajan
General Manager of Accounts0yrsno datano data
Abhinandan Singh
Head of Investor Relations and M&A0yrsno data0.00081% 930.8k
Shyam Viswanathan
Chief People Officer3.3yrs₹8.99m0.0084% 9.7m
Adrian Morgan
Executive VP & Head of AdvantageGo3yrsno datano data
Gautam Samanta
Executive VP & Global Head of BFS2.4yrsno data0.0080% 9.2m
Anurag Chauhan
Executive VP & Global Head of the Insurance2.1yrsno data0.0048% 5.5m

2.1yrs

Average Tenure

Experienced Management: NIITTECH's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sudhir Singh
CEO & Executive Director2.1yrsno data0.10% 117.0m
Basab Pradhan
Non-Executive Chairperson0.7yrsno data0.0048% 5.5m
Kenneth Cheong
Non-Executive Director0.8yrsno datano data
Holly Morris
Independent Director5.3yrs₹2.55mno data
Kirti Hariharan
Non-Executive Director0.8yrsno datano data
Ashwani Puri
Independent Non-Executive Director7.8yrs₹2.51mno data
Patrick John Cordes
Non-Executive Director0.8yrsno datano data
Hari Gopalakrishnan
Non-Executive Director0.8yrsno datano data

0.8yrs

Average Tenure

49yo

Average Age

Experienced Board: NIITTECH's board of directors are not considered experienced ( 0.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 Technologies Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NIIT Technologies Limited
  • Ticker: NIITTECH
  • Exchange: NSEI
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹114.915b
  • Shares outstanding: 62.49m
  • Website: https://www.niit-tech.com

Number of Employees


Location

  • NIIT Technologies Limited
  • 8, Balaji Estate
  • First Floor
  • New Delhi
  • Delhi
  • 110019
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532541BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 2004
NIITTECHNSEI (National Stock Exchange of India)YesEquity SharesININRAug 2004

Biography

NIIT Technologies Limited operates as an information technology (IT) solutions organization in North America, Europe, the Middle East, and the Asia Pacific. It focuses on three primary verticals, including banking and financial services, insurance, and travel and transportation. The company offers Tron intelligent automation services, including business process automation, IT operations automation, robotic process automation, development automation, and cognitive services; and business process services, such as finance and accounting transformation, and contract loading services. It also provides cyber security services comprising security controls and technology management, threat and vulnerability management, and security crisis and incident response services; data and analytics services that include machine learning, data management, data modernization, and data monetization services; and digital process transformation services. In addition, the company offers infrastructure management services, which comprise data center, DevOps and automation, digital workplace, IT operations management, and services management services; and digital services, including digital experience and integration services. Further, it provides application services, such as application management, testing, business agility and simplification, and salesforce services; and cloud services comprising cloud advisory, migration, operation, management, security, and testing services, as well as CloudPixy, a multi-cloud provisioning and orchestration solution. The company serves the travel and transportation, insurance, banking and financial services, enterprise services, manufacturing, media, and other industries. 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 New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 12:57
End of Day Share Price2020/02/25 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.