Why is NIIT Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -18.03% and Operating profit at -186.57% over the last 5 years
2
Flat results in Dec 24
- PBT LESS OI(Q) At Rs 0.52 cr has Fallen at -75.24 %
- CASH AND CASH EQUIVALENTS(HY) Lowest at Rs 59.78 cr
- NON-OPERATING INCOME(Q) is 97.02 % of Profit Before Tax (PBT)
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 04-Apr-25 and has generated -1.68% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Risky - Negative Operating Profits
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of 2.47%, its profits have risen by 138% ; the PEG ratio of the company is 0.2
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Education)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is NIIT for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
NIIT
4.04%
0.04
60.07%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-18.03%
EBIT Growth (5y)
-186.57%
EBIT to Interest (avg)
11.87
Debt to EBITDA (avg)
0.72
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.48
Tax Ratio
14.47%
Dividend Payout Ratio
26.41%
Pledged Shares
0
Institutional Holding
24.97%
ROCE (avg)
12.98%
ROE (avg)
6.10%
Valuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
24
Price to Book Value
1.41
EV to EBIT
-47.17
EV to EBITDA
154.36
EV to Capital Employed
2.14
EV to Sales
2.33
PEG Ratio
0.24
Dividend Yield
0.68%
ROCE (Latest)
-4.13%
ROE (Latest)
4.43%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
No Trend
Technical Movement
6What is working for the Company
PAT(9M)
At Rs 34.23 cr has Grown at 23.58 %
ROCE(HY)
Highest at 5.60 %
NET SALES(Q)
Highest at Rs 98.11 cr
EPS(Q)
Highest at Rs 0.99
-7What is not working for the Company
PBT LESS OI(Q)
At Rs 0.52 cr has Fallen at -75.24 %
CASH AND CASH EQUIVALENTS(HY)
Lowest at Rs 59.78 cr
NON-OPERATING INCOME(Q)
is 97.02 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for NIIT
Profit After Tax (PAT) - Nine Monthly
At Rs 34.23 cr has Grown at 23.58 %
Year on Year (YoY)MOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Net Sales - Quarterly
Highest at Rs 98.11 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.99
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for NIIT
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 0.52 cr has Fallen at -75.24 %
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Non Operating Income - Quarterly
is 97.02 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Cash and Cash Equivalents - Half Yearly
Lowest at Rs 59.78 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents