Recent Price Movement and Market Context
On 9 December 2025, NIIT's stock price touched an intraday low of Rs.86.3, representing a decline of 2.49% on the day and a cumulative loss of 11.38% over the past nine trading sessions. This downward trend has positioned the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum.
In comparison, the broader Sensex index experienced a fall of 340.58 points, or 0.82%, closing at 84,402.29. Despite this decline, the Sensex remains approximately 2.08% below its 52-week high of 86,159.02 and continues to trade above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the benchmark.
Performance Relative to Sector and Benchmark
NIIT's performance has notably lagged behind its sector peers and the broader market. The stock underperformed its sector by 1.42% on the day of the new low. Over the past year, NIIT has recorded a return of -59.15%, contrasting sharply with the Sensex's positive return of 3.55% during the same period. The stock's 52-week high was Rs.222.5, highlighting the extent of the decline from its peak.
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Financial Trends Over Recent Years
NIIT's financial data over the last five years reveals a contraction in key metrics. Net sales have shown a compound annual decline of approximately 15.74%, while operating profit has recorded a significant reduction of 214.66% over the same period. These figures reflect a challenging environment for the company’s revenue generation and profitability.
More recently, the company has reported negative results for three consecutive quarters. The Profit Before Tax excluding other income for the latest quarter stood at Rs. -8.60 crore, reflecting a decline of 47.51%. The Profit After Tax for the first nine months was Rs. 21.63 crore, which represents a reduction of 32.40% compared to the previous period.
Liquidity and Efficiency Indicators
NIIT's debtor turnover ratio for the half-year period is recorded at 0.64 times, indicating slower collection of receivables relative to previous periods. This figure is among the lowest observed, suggesting potential challenges in working capital management.
On the positive side, the company maintains a low average debt-to-equity ratio, effectively at zero, which indicates minimal reliance on external debt financing. This conservative capital structure may provide some cushion amid the current financial pressures.
Stock Valuation and Risk Profile
The stock is currently trading at levels considered risky when compared to its historical average valuations. Over the past year, NIIT's share price has declined by 59.15%, while profits have fallen by 24.4%. This combination of price and earnings contraction underscores the challenges faced by the company in both market perception and financial performance.
Additionally, NIIT has underperformed the BSE500 index over multiple time frames, including the last three years, one year, and three months, further highlighting its relative weakness within the broader market.
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Institutional Holdings and Market Position
NIIT's shareholding pattern includes a significant proportion of institutional investors, accounting for 22.97% of the total holdings. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence trading dynamics and valuation considerations.
Despite the current price levels, the stock remains classified within the Other Consumer Services sector and industry, which has its own set of market dynamics and competitive pressures.
Summary of Key Price and Performance Metrics
To summarise, NIIT's stock has experienced a sustained decline culminating in a 52-week low of Rs.86.3. The stock has underperformed both its sector and the broader market indices, with a one-year return of -59.15% compared to the Sensex's 3.55%. Financial indicators over recent years show contraction in sales and profitability, alongside subdued liquidity ratios and a conservative debt profile.
The stock's current trading below all major moving averages and its recent price action reflect ongoing market pressures. While the Sensex maintains a generally bullish technical stance, NIIT's performance remains subdued in comparison.
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