Recent Price Movement and Market Context
On 2 December 2025, NIIT’s stock price touched Rs.95.1, the lowest level seen in the past year. This decline comes after a four-day stretch during which the stock has recorded a cumulative return of -2.3%. The day’s performance was broadly in line with the sector’s movement, as the Other Consumer Services sector showed similar trends. NIIT’s price currently trades below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained weakness across short, medium, and long-term technical indicators.
In contrast, the broader market has shown relative resilience. The Sensex opened lower by 316.39 points but was trading at 85,316.42 by midday, down 0.38%. Notably, the Sensex remains close to its 52-week high of 86,159.02, just 0.99% away, and is supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks have led the market gains, with the BSE Mid Cap index rising by 0.07% on the day.
Long-Term Performance and Financial Trends
NIIT’s stock has underperformed significantly over the past year, delivering a return of -58.14%, while the Sensex has recorded a positive return of 6.32% over the same period. The stock’s 52-week high was Rs.233.8, highlighting the extent of the decline from its peak.
Over the last five years, the company’s net sales have shown a negative compound annual growth rate of -15.74%, while operating profit has reflected a sharper contraction at -214.66%. These figures indicate challenges in sustaining revenue growth and profitability over the medium term.
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Quarterly and Recent Financial Results
The company has reported negative results for the last three consecutive quarters. The Profit Before Tax excluding other income (PBT LESS OI) for the most recent quarter stood at Rs. -8.60 crore, reflecting a decline of 47.51% compared to the previous period. The Profit After Tax (PAT) for the nine-month period was Rs. 21.63 crore, showing a contraction of 32.40% year-on-year.
Additionally, the Debtors Turnover Ratio for the half-year period is at a low 0.64 times, indicating slower collection efficiency relative to historical levels. The company’s EBITDA remains negative, which adds to the cautious outlook on its earnings quality.
Valuation and Risk Considerations
NIIT’s stock is trading at valuations that are considered risky when compared to its historical averages. The stock’s returns over the past year have been negative at -58.14%, while profits have declined by 24.4% during the same timeframe. This combination of falling earnings and share price has contributed to the stock’s current valuation profile.
Over the longer term, NIIT has underperformed the BSE500 index across multiple time horizons, including the last three years, one year, and three months. This persistent underperformance highlights challenges in both near-term and sustained growth prospects.
Balance Sheet and Shareholding Structure
On the balance sheet front, NIIT maintains a low average debt-to-equity ratio of zero, indicating minimal reliance on debt financing. This conservative capital structure may provide some stability amid earnings volatility.
Institutional investors hold a significant stake in the company, accounting for 22.97% of the shareholding. These investors typically have greater resources and analytical capabilities to assess company fundamentals compared to retail investors.
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Summary of Key Metrics
To summarise, NIIT’s stock has reached a 52-week low of Rs.95.1 after a sustained period of decline. The stock’s performance over the past year has been notably weaker than the broader market, with a return of -58.14% compared to the Sensex’s 6.32%. Financial indicators reveal contraction in sales and operating profit over the last five years, alongside negative quarterly earnings and a low debtor turnover ratio.
The company’s low debt levels and significant institutional shareholding provide some balance to the overall picture. However, the stock remains below all major moving averages and continues to face downward momentum in the current market environment.
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