NasdaqCM:SIFY

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

2.9%

SIFY

0.4%

US Telecom

0.7%

US Market


1 Year Return

11.3%

SIFY

12.1%

US Telecom

13.7%

US Market

Return vs Industry: SIFY matched the US Telecom industry which returned 12.1% over the past year.

Return vs Market: SIFY underperformed the US Market which returned 13.7% over the past year.


Shareholder returns

SIFYIndustryMarket
7 Day2.9%0.4%0.7%
30 Day-3.0%0.7%4.7%
90 Day6.9%8.1%6.1%
1 Year12.5%11.3%17.9%12.1%16.2%13.7%
3 Year40.7%35.8%28.3%9.7%48.8%39.2%
5 Year-8.6%-13.5%39.7%7.8%62.5%44.5%

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?

14.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SIFY ($1.36) is trading above our estimate of fair value ($0.29)

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 (16.5x).

PE vs Market: SIFY is good value based on its PE Ratio (14x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: SIFY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


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 (1.4x).


Next Steps

Future Growth

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

-4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIFY's earnings are forecast to decline over the next 3 years (-4.3% per year).

Earnings vs Market: SIFY's earnings are forecast to decline over the next 3 years (-4.3% per year).

High Growth Earnings: SIFY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SIFY's revenue (14% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SIFY's revenue (14% 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?

27.4%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: SIFY's current net profit margins (4.5%) are lower than last year (4.7%).


Past Earnings Growth Analysis

Earnings Trend: SIFY's earnings have grown significantly by 27.4% per year over the past 5 years.

Accelerating Growth: SIFY's earnings growth over the past year (2.2%) is below its 5-year average (27.4% per year).

Earnings vs Industry: SIFY earnings growth over the past year (2.2%) exceeded the Telecom industry -43.1%.


Return on Equity

High ROE: SIFY's Return on Equity (9.5%) 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 (₹17.1B) exceeds its short term liabilities (₹14.4B)

Long Term Liabilities: SIFY's short term assets (17.1B) exceeds its long term liabilities (4.7B)


Debt to Equity History and Analysis

Debt Level: SIFY's debt to equity ratio (76.2%) is considered high

Reducing Debt: SIFY's debt to equity ratio has increased from 29.9% to 76.2% over the past 5 years.

Debt Coverage: SIFY's debt is not well covered by operating cash flow (17.6%).

Interest Coverage: SIFY's interest payments on its debt are well covered by EBIT (3x 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 2.1x debt).


Next Steps

Dividend

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

1.23%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.4%markettop25%3.6%industryaverage4.7%forecastin3Years1.5%

Current dividend yield vs market & industry

Notable Dividend: SIFY's dividend (1.23%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: SIFY's dividend (1.23%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.3%), SIFY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


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

Kamal Nath (54yo)

7.3yrs

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 ($USD210.01K) is below average for companies of similar size in the US market ($USD1.16M).

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


Management Age and Tenure

6.9yrs

Average Tenure

59yo

Average Age

Experienced Management: SIFY's management team is seasoned and experienced (6.9 years average tenure).


Board Age and Tenure

12.4yrs

Average Tenure

68yo

Average Age

Experienced Board: SIFY's board of directors are seasoned and experienced ( 12.4 years average tenure).


Insider Trading

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 2.6%.


Management Team

  • Raju Vegesna (59yo)

    Chairman & MD

    • Tenure: 14yrs
  • David Nishball

    Chief Strategic Officer

    • Tenure: 8.8yrs
  • Natesh Mani (59yo)

    President of Sales and Marketing

    • Tenure: 0yrs
    • Compensation: ₹5.33m
  • Ananda Vegesna (59yo)

    Executive Director

    • Tenure: 12.4yrs
  • M. Vijay Kumar (49yo)

    Chief Financial Officer

    • Tenure: 12.1yrs
    • Compensation: ₹11.76m
  • Mark Ryder

    Managing Director of European Operations

    • Tenure: 2.8yrs
  • C. Rao (59yo)

    COO, Head of Human Resources & Administration and VP

    • Tenure: 6.6yrs
    • Compensation: ₹12.91m
  • Kamal Nath (54yo)

    Chief Executive Officer

    • Tenure: 7.3yrs
    • Compensation: ₹15.04m
  • Arindam Mukherjee

    Regional CEO of West Region

    • Tenure: 1.8yrs
  • V. Ramanujan

    Company Secretary

    • Tenure: 2.4yrs

Board Members

  • Tripuraneni Chowdary (88yo)

    Independent Director

    • Tenure: 23.8yrs
  • Raju Vegesna (59yo)

    Chairman & MD

    • Tenure: 14yrs
  • C. Mouli (72yo)

    Independent Director

    • Tenure: 14.3yrs
  • Ananda Vegesna (59yo)

    Executive Director

    • Tenure: 12.4yrs
  • C. E. Azariah (71yo)

    Independent Director

    • Tenure: 6.7yrs
  • Bala Vegesna (55yo)

    Director

    • Tenure: 4.3yrs
  • Arun Seth (68yo)

    Independent Director

    • Tenure: 1.1yrs

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$205.069m
  • 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 Servi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:48
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
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.