NasdaqCM:SIFY

Stock Analysis Report

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Executive Summary

Sify Technologies Limited provides integrated ICT solutions and services in India and internationally. More Details


Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SIFY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.7%

SIFY

-2.8%

US Telecom

-1.3%

US Market


1 Year Return

-15.0%

SIFY

-17.1%

US Telecom

18.5%

US Market

Return vs Industry: SIFY exceeded the US Telecom industry which returned -17.1% over the past year.

Return vs Market: SIFY underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

SIFYIndustryMarket
7 Day8.7%-2.8%-1.3%
30 Day8.2%-5.0%5.3%
90 Day-9.8%-3.8%7.5%
1 Year-15.0%-15.0%-12.7%-17.1%21.3%18.5%
3 Year-20.8%-22.2%7.9%-7.7%42.4%32.9%
5 Year-1.0%-5.5%20.0%-7.1%84.2%63.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

22.21x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SIFY ($1.19) is trading above our estimate of fair value ($0.33)

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


Price To Earnings Ratio

PE vs Industry: SIFY is poor value based on its PE Ratio (22.2x) compared to the US Telecom industry average (11.7x).

PE vs Market: SIFY is poor value based on its PE Ratio (22.2x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: SIFY is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SIFY's PB Ratio (1.2x) is in line with the US Telecom industry average.


Next Steps

Future Growth

How is Sify Technologies forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

32.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIFY's forecast earnings growth (32.2% per year) is above the savings rate (2.2%).

Earnings vs Market: SIFY's earnings (32.2% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SIFY's revenue (13.1% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: SIFY's revenue (13.1% 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 SIFY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sify Technologies performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIFY has high quality earnings.

Growing Profit Margin: SIFY's current net profit margins (2.9%) are lower than last year (4.8%).


Past Earnings Growth Analysis

Earnings Trend: SIFY's earnings have grown by 16.9% per year over the past 5 years.

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

Earnings vs Industry: SIFY had negative earnings growth (-38.9%) over the past year, making it difficult to compare to the Telecom industry average (6%).


Return on Equity

High ROE: SIFY's Return on Equity (5.8%) is considered low.


Next Steps

Financial Health

How is Sify Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SIFY's short term assets (₹16.6B) exceed its short term liabilities (₹16.5B).

Long Term Liabilities: SIFY's short term assets (₹16.6B) exceed its long term liabilities (₹6.4B).


Debt to Equity History and Analysis

Debt Level: SIFY's debt to equity ratio (82.3%) is considered high.

Reducing Debt: SIFY's debt to equity ratio has increased from 40.4% to 82.3% over the past 5 years.

Debt Coverage: SIFY's debt is well covered by operating cash flow (54%).

Interest Coverage: SIFY's interest payments on its debt are not well covered by EBIT (1.9x coverage).


Balance Sheet


Next Steps

Dividend

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

1.71%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SIFY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SIFY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SIFY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SIFY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SIFY is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SIFY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

7.8yrs

Average management tenure


CEO

Kamal Nath (55 yo)

8.17yrs

Tenure

₹16,120,000

Compensation

Mr. Kamal Nath has been Chief Executive Officer of Sify Technologies Limited since August 16, 2012. Mr. Nath was a Founder Member of HCL Comnet, the Infrastructure Services division of HCL Tech and has bee ...


CEO Compensation Analysis

Compensation vs Market: Kamal's total compensation ($USD219.36K) is below average for companies of similar size in the US market ($USD1.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Raju Vegesna
Chairman & MD14.92yrsno datano data
Kamal Nath
Chief Executive Officer8.17yrs₹16.12mno data
M. Vijay Kumar
Chief Financial Officer13yrs₹13.20mno data
C. Rao
COO, Head of Human Resources & Administration and VP7.5yrs₹13.85mno data
Ananda Vegesna
Executive Director13.33yrsno datano data
Natesh Mani
President of Sales and Marketingno data₹5.33mno data
David Nishball
Chief Strategic Officer9.67yrsno datano data
Mark Ryder
Managing Director of European Operations3.75yrsno datano data
Arindam Mukherjee
Regional CEO of West Region2.67yrsno datano data
V. Ramanujan
Company Secretary3.33yrsno datano data

7.8yrs

Average Tenure

60yo

Average Age

Experienced Management: SIFY's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raju Vegesna
Chairman & MD14.92yrsno datano data
Ananda Vegesna
Executive Director13.33yrsno datano data
Tripuraneni Chowdary
Independent Director24.67yrsno datano data
C. Mouli
Independent Director15.25yrsno datano data
C. E. Azariah
Independent Director7.58yrsno datano data
Bala Vegesna
Director5.25yrsno datano data
Arun Seth
Independent Director2yrsno datano data

13.3yrs

Average Tenure

69yo

Average Age

Experienced Board: SIFY's board of directors are seasoned and experienced ( 13.3 years average tenure).


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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Sify Technologies Limited
  • Ticker: SIFY
  • Exchange: NasdaqCM
  • Founded: 1995
  • Industry: Alternative Carriers
  • Sector: Telecom
  • Market Cap: US$179.807m
  • Shares outstanding: 151.10m
  • Website: https://www.sifytechnologies.com

Number of Employees


Location

  • Sify Technologies Limited
  • TIDEL Park
  • 2nd Floor
  • Chennai
  • Tamil Nadu
  • 600113
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SIFYNasdaqCM (Nasdaq Capital Market)YesADR EACH REP 1 ORD SHSUSUSDOct 1999
IWY1DB (Deutsche Boerse AG)YesADR EACH REP 1 ORD SHSDEEUROct 1999

Biography

Sify Technologies Limited provides integrated ICT solutions and services in India and internationally. The company operates in five segments: Telecom Services, Data Center Services, Cloud and Managed Servi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 23:49
End of Day Share Price2020/10/20 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.