NasdaqCM:SIFY

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Good value with moderate growth potential.


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


Market Performance


7 Day Return

-12.3%

SIFY

-6.5%

US Telecom

-10.6%

US Market


1 Year Return

-33.1%

SIFY

6.0%

US Telecom

5.2%

US Market

Return vs Industry: SIFY underperformed the US Telecom industry which returned 9.8% over the past year.

Return vs Market: SIFY underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

SIFYIndustryMarket
7 Day-12.3%-6.5%-10.6%
30 Day-11.6%-5.4%-8.5%
90 Day-19.1%-6.2%-4.6%
1 Year-32.4%-33.1%11.2%6.0%7.4%5.2%
3 Year25.3%20.9%9.5%-6.3%31.7%23.2%
5 Year-17.5%-21.9%32.7%3.0%56.4%39.3%

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?

12.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SIFY ($1.19) is trading above our estimate of fair value ($0.32)

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


Price To Earnings Ratio

PE vs Industry: SIFY is good value based on its PE Ratio (14x) compared to the Telecom industry average (16x).

PE vs Market: SIFY is good value based on its PE Ratio (14x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: SIFY is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SIFY is good value based on its PB Ratio (1.4x) compared to the US Telecom industry average (1.5x).


Next Steps

Future Growth

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

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIFY's forecast earnings growth (15.6% per year) is above the savings rate (1.7%).

Earnings vs Market: SIFY's earnings (15.6% per year) are forecast to grow faster than the US market (13.2% per year).

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

Revenue vs Market: SIFY's revenue (10.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SIFY's revenue (10.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SIFY's Return on Equity is forecast to be low in 3 years time (8.2%).


Next Steps

Past Performance

How has Sify Technologies performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SIFY has high quality earnings.

Growing Profit Margin: SIFY's current net profit margins (3.8%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: SIFY's earnings have grown significantly by 24.4% 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 (-14.9%) over the past year, making it difficult to compare to the Telecom industry average (-14.9%).


Return on Equity

High ROE: SIFY's Return on Equity (8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sify Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: SIFY's short term assets (₹15.9B) exceed its short term liabilities (₹15.2B).

Long Term Liabilities: SIFY's short term assets (₹15.9B) exceed its long term liabilities (₹6.0B).


Debt to Equity History and Analysis

Debt Level: SIFY's debt to equity ratio (76.6%) is considered high.

Reducing Debt: SIFY's debt to equity ratio has increased from 37.2% to 76.6% over the past 5 years.

Debt Coverage: SIFY's debt is well covered by operating cash flow (34.2%).

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


Balance Sheet

Inventory Level: SIFY has a high level of physical assets or inventory.

Debt Coverage by Assets: SIFY's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

1.56%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.6%markettop25%4.1%industryaverage5.2%forecastin3Years1.9%

Current dividend yield vs market & industry

Notable Dividend: SIFY's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.53%).

High Dividend: SIFY's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (3.96%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SIFY has been paying a dividend for less than 10 years.

Growing Dividend: SIFY's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.8%), SIFY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SIFY's dividends in 3 years are forecast to be well covered by earnings (23.5% payout ratio).


Next Steps

Management

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

7.2yrs

Average management tenure


CEO

Kamal Nath (54yo)

7.5yrs

Tenure

₹15,040,000

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 ($USD210.12K) is below average for companies of similar size in the US market ($USD1.14M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Raju Vegesna
Chairman & MD14.3yrsno datano data
Kamal Nath
Chief Executive Officer7.5yrs₹15.04mno data
M. Vijay Kumar
Chief Financial Officer12.3yrs₹11.76mno data
C. Rao
COO, Head of Human Resources & Administration and VP6.8yrs₹12.91mno data
Ananda Vegesna
Executive Director12.7yrsno datano data
Natesh Mani
President of Sales and Marketing0yrs₹5.33mno data
David Nishball
Chief Strategic Officer9yrsno datano data
Mark Ryder
Managing Director of European Operations3.1yrsno datano data
Arindam Mukherjee
Regional CEO of West Region2yrsno datano data
V. Ramanujan
Company Secretary2.7yrsno datano data

7.2yrs

Average Tenure

59yo

Average Age

Experienced Management: SIFY's management team is seasoned and experienced (7.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Raju Vegesna
Chairman & MD14.3yrsno datano data
Ananda Vegesna
Executive Director12.7yrsno datano data
Tripuraneni Chowdary
Independent Director24yrsno datano data
C. Mouli
Independent Director14.6yrsno datano data
C. E. Azariah
Independent Director6.9yrsno datano data
Bala Vegesna
Director4.6yrsno datano data
Arun Seth
Independent Director1.3yrsno datano data

12.7yrs

Average Tenure

68yo

Average Age

Experienced Board: SIFY's board of directors are seasoned and experienced ( 12.7 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 been diluted in the past year, with total shares outstanding growing by 12%.


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$179.064m
  • Shares outstanding: 151.02m
  • 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 Services, Technology Integration Services, and Applications Integration Services. The Telecom Services segment offers Internet protocol based virtual private network services, including intranets, extranets, and remote access applications; and last mile connectivity services. The Data Center Services segment provides co-location, regular backup, server load balancing, and remote backup solutions; messaging, shared hosting, network, and security services; storage and virtualization services; and managed voice services to resident enterprises. The Cloud and Managed Services segment offers on-demand hosting services; and remote and onsite infrastructure management services that manages and supports customer operating systems, applications, and database layers, as well as utility-based on-demand storage service that manages the lifecycle of enterprise information. The Technology Integration Services segment provides data center build, network integration, information security, end user computing, and collaborative tools and solutions. The Applications Integration Services segment offers a range of Web-applications; and operates online portals, including sify.com and samachar.com, which acts as principal entry points and gateway for accessing the Internet, as well as related content sites. Sify Technologies Limited also provides Website design, development, content management, online assessment tools, and search engine optimization services; online testing engine and network management services; and online exam engine solutions. The company was formerly known as Sify Limited and changed its name to Sify Technologies Limited in October 2007. The company was founded in 1995 and is headquartered in Chennai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 00:45
End of Day Share Price2020/02/27 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.