Stock Price Movement and Market Context
On 1 Dec 2025, NIIT’s stock price reached Rs.95.8, the lowest level recorded in the past 52 weeks. Despite this, the stock outperformed its sector by 0.83% on the day, showing a modest gain after two consecutive days of decline. However, NIIT remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure.
In contrast, the broader market displayed mixed signals. The Sensex opened 359.25 points higher but reversed to close 424.02 points lower at 85,641.90, a decline of 0.08%. The benchmark index remains close to its 52-week high of 86,055.86, trading just 0.48% below that peak. Small-cap stocks led the market with the BSE Small Cap index gaining 0.05% on the day.
Long-Term Performance and Comparison
NIIT’s one-year performance shows a return of -56.60%, a stark contrast to the Sensex’s 7.32% gain over the same period. The stock’s 52-week high was Rs.233.8, highlighting the extent of the decline. Over the last three years, NIIT has underperformed the BSE500 index, reflecting challenges in both near-term and long-term performance metrics.
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Financial Metrics Reflecting the Downtrend
NIIT’s financial data over recent years illustrates the pressures on the company’s performance. Net sales have shown a compound annual decline of 15.74% over the last five years, while operating profit has contracted at an annual rate of 214.66%. The company has reported negative results for three consecutive quarters, with profit before tax excluding other income (PBT LESS OI) at Rs. -8.60 crore, reflecting a 47.51% decline. Quarterly profit after tax (PAT) stood at Rs. 2.16 crore, down by 83.3%.
The debtors turnover ratio for the half-year period is notably low at 0.64 times, indicating slower collection cycles. Additionally, the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) have been negative, contributing to the stock’s risk profile relative to its historical valuations.
Valuation and Risk Considerations
NIIT’s stock is considered risky when compared to its average historical valuation levels. Over the past year, the stock’s return of -56.60% coincides with a 24.4% decline in profits, underscoring the challenges faced by the company. The stock’s performance has lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months.
Despite these challenges, NIIT maintains a low average debt-to-equity ratio of zero, suggesting limited leverage on its balance sheet. Institutional investors hold 22.97% of the company’s shares, indicating a significant stake by entities with resources to analyse company fundamentals.
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Sector and Industry Positioning
NIIT operates within the Other Consumer Services industry and sector, a segment that has seen varied performance across companies. The stock’s recent price action and financial indicators place it at a lower position relative to peers in the sector. The company’s market capitalisation grade is rated at 3, reflecting its size and market presence within the segment.
While the broader market indices such as the Sensex continue to trade near their highs and maintain bullish moving averages, NIIT’s stock remains below all major moving averages, signalling a divergence from general market momentum.
Summary of Key Data Points
To summarise, NIIT’s stock has reached Rs.95.8, its lowest level in 52 weeks, with a one-year return of -56.60%. The company’s net sales and operating profit have declined significantly over the past five years, and recent quarterly results have been negative. The stock trades below all major moving averages and has a low debt-to-equity ratio. Institutional holdings stand at nearly 23%, reflecting a notable presence of professional investors.
These factors collectively illustrate the current state of NIIT’s stock and financial health, providing a comprehensive view of the challenges and market conditions influencing its valuation.
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