Stock Performance and Market Context
On 21 Jan 2026, 3i Infotech Ltd’s stock price reached Rs.14.5, the lowest level recorded in the past 52 weeks. This new low comes after a two-day consecutive decline, during which the stock lost 3.87% in returns. Despite this, the stock marginally outperformed its sector by 0.3% on the day. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In comparison, the Sensex index also experienced a decline, falling 212.17 points or 0.73% to 81,582.48 after a negative opening. The Sensex has been on a three-week losing streak, dropping 4.87% over this period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying market resilience despite recent weakness.
Over the last year, 3i Infotech Ltd’s stock has delivered a negative return of 44.21%, significantly underperforming the Sensex’s positive 7.53% gain. The stock’s 52-week high was Rs.29.83, highlighting the extent of the decline from its peak.
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Financial Metrics and Fundamental Assessment
3i Infotech Ltd operates within the Computers - Software & Consulting sector and currently holds a Market Capitalisation Grade of 4. The company’s financial health has been under scrutiny, reflected in its recent downgrade from a Sell to a Strong Sell rating by MarketsMOJO on 13 Nov 2025, with a current Mojo Score of 17.0.
The company’s long-term fundamental strength is considered weak, primarily due to operating losses that have persisted. Its ability to service debt is constrained, as indicated by a poor average EBIT to Interest ratio of -1.88, signalling that earnings before interest and taxes are insufficient to cover interest expenses.
Profitability metrics also remain subdued. The average Return on Equity (ROE) stands at 6.25%, which is relatively low and suggests limited profitability generated per unit of shareholders’ funds. Despite this, the company has reported positive results for the last four consecutive quarters, with a notable growth in Profit After Tax (PAT) for the nine-month period reaching Rs.52.95 crores, representing a 179.14% increase.
Return on Capital Employed (ROCE) for the half-year period peaked at 18.53%, indicating some improvement in capital efficiency. However, these gains have not translated into sustained stock price appreciation.
Valuation and Risk Considerations
The stock is currently trading at valuations considered risky relative to its historical averages. The Price/Earnings to Growth (PEG) ratio stands at zero, reflecting the disconnect between the stock’s price performance and profit growth. While profits have risen by 174.6% over the past year, the stock price has declined sharply, underscoring investor caution.
3i Infotech Ltd’s performance has been below par not only in the near term but also over the longer horizon. It has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in delivering shareholder value.
Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics.
Holding 3i Infotech Ltd from Computers - Software & Consulting? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Current Situation
3i Infotech Ltd’s stock has experienced a marked decline over the past year, culminating in a fresh 52-week low of Rs.14.5. The company’s financial indicators reveal ongoing pressures, including operating losses and weak debt servicing capacity. Although recent quarters have shown positive profit growth and improved capital returns, these have not yet been reflected in the stock’s market performance.
The broader market environment has also been challenging, with the Sensex undergoing a multi-week decline. Within this context, 3i Infotech’s underperformance relative to both the Sensex and its sector peers highlights the difficulties faced by the company in regaining investor confidence.
Investors and market participants continue to monitor the company’s financial metrics and market behaviour closely as it navigates this period of subdued valuation and performance.
Unlock special upgrade rates for a limited period. Start Saving Now →
