NasdaqCM:SIFY

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Proven track record with reasonable growth potential.

Risks

  • Sify Technologies is covered by less than 3 analysts.

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


Market Performance


7 Day Return

7.5%

NasdaqCM:SIFY

0.2%

US Telecom

1.1%

US Market


1 Year Return

-25.9%

NasdaqCM:SIFY

6.7%

US Telecom

4.7%

US Market

SIFY underperformed the Telecom industry which returned 6.1% over the past year.

SIFY underperformed the Market in United States of America which returned 4.8% over the past year.


Share holder returns

SIFYIndustryMarket
7 Day7.5%0.2%1.1%
30 Day8.3%1.8%4.3%
90 Day-4.7%1.9%2.9%
1 Year-25.1%-25.9%12.3%6.7%7.0%4.7%
3 Year35.6%30.9%2.0%-12.8%47.4%37.7%
5 Year-20.9%-25.1%24.6%-3.8%61.6%43.6%

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 based on future cash flows and its price relative to the stock market?

14.91x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Sify Technologies's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Sify Technologies's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Sify Technologies is overvalued based on earnings compared to the US Telecom industry average.

Sify Technologies is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sify Technologies is good value based on expected growth next year.


Price Based on Value of Assets

Sify Technologies is good value based on assets compared to the US Telecom industry average.


Next Steps

Future Growth

How is Sify Technologies expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sify Technologies's revenue is expected to grow by 12% yearly, however this is not considered high growth (20% yearly).

Sify Technologies's earnings are expected to grow significantly at over 20% yearly.

Sify Technologies's revenue growth is expected to exceed the United States of America market average.

Sify Technologies's earnings growth is expected to exceed the United States of America market average.

Sify Technologies's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Sify Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Sify Technologies performed over the past 5 years?

29.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sify Technologies has delivered over 20% year on year earnings growth in the past 5 years.

Sify Technologies's 1-year earnings growth is less than its 5-year average (15.7% vs 29.2%)

Sify Technologies's earnings growth has exceeded the US Telecom industry average in the past year (15.7% vs -18.4%).


Return on Equity

Sify Technologies has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sify Technologies used its assets more efficiently than the US Telecom industry average last year based on Return on Assets.


Return on Capital Employed

Sify Technologies has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sify Technologies's financial position?


Financial Position Analysis

Sify Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sify Technologies's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sify Technologies's level of debt (77.1%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (44.9% vs 77.1% today).

Debt is not well covered by operating cash flow (17.3%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 3x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.1x debt.


Next Steps

Dividend

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

1.33%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Sify Technologies's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.41%).

Sify Technologies's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Sify Technologies has been paying a dividend for less than 10 years.

Dividend payments have increased, but Sify Technologies only paid a dividend in the past 5 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (6.5x coverage).


Next Steps

Management

What is the CEO of Sify Technologies's salary, the management and board of directors tenure and is there insider trading?

6.9yrs

Average management tenure


CEO

Raju Vegesna (59yo)

13.0yrs

Tenure

Mr. Raju Vegesna has been the Managing Director at Sify Technologies Limited (formerly, Sify Ltd.) since July 18, 2006 and has been its Executive Chairman since November 10, 2005. Mr. Vegesna serves as Chi ...


Management Age and Tenure

6.9yrs

Average Tenure

59yo

Average Age

The average tenure for the Sify Technologies management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.1yrs

Average Tenure

68yo

Average Age

The average tenure for the Sify Technologies board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • C. Rao (59yo)

    COO, Head of Human Resources & Administration and VP

    • Tenure: 6.3yrs
    • Compensation: 12.91m
  • Ananda Vegesna (59yo)

    Executive Director

    • Tenure: 12.1yrs
  • M. Vijay Kumar (49yo)

    Chief Financial Officer

    • Tenure: 11.8yrs
    • Compensation: 11.76m
  • David Nishball

    Chief Strategic Officer

    • Tenure: 8.4yrs
  • Kamal Nath (54yo)

    Chief Executive Officer

    • Tenure: 6.9yrs
    • Compensation: 15.04m
  • V. Ramanujan

    Company Secretary

    • Tenure: 2.1yrs
  • Natesh Mani (59yo)

    President of Sales and Marketing

    • Compensation: 5.33m
  • Raju Vegesna (59yo)

    Chairman & MD

    • Tenure: 13.0yrs
  • Arindam Mukherjee

    Regional CEO of West Region

    • Tenure: 1.4yrs
  • Mark Ryder

    Managing Director of European Operations

    • Tenure: 2.5yrs

Board Members

  • T. Chowdary (88yo)

    Director

    • Tenure: 23.4yrs
  • Raju Vegesna (59yo)

    Chairman & MD

    • Tenure: 13.7yrs
  • C. Mouli (72yo)

    Director

    • Tenure: 14.0yrs
  • Ananda Vegesna (59yo)

    Executive Director

    • Tenure: 12.1yrs
  • C. E. Azariah (71yo)

    Director

    • Tenure: 6.3yrs
  • Bala Vegesna (55yo)

    Director

    • Tenure: 4.0yrs
  • Arun Seth (68yo)

    Independent Director

    • Tenure: 0.8yrs

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$227.284m
  • Shares outstanding: 151.02m
  • Website: Click here

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 Analysis2019/07/15 23:46
End of Day Share Price2019/07/15 00:00
Earnings2019/03/31
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.