3i Infotech Ltd (3IINFOLTD) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Trejhara Solutio

Inspirisys Sol.

Softsol India

3i Infotech

Bartronics India

Aion-Tech Soluti

FCS Software

Adcounty Media.

CapitalNumbers

Pelatro

Virtual Galaxy

Why is 3i Infotech Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.88
The company has been able to generate a Return on Equity (avg) of 6.25% signifying low profitability per unit of shareholders funds

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 -39.03%, its profits have risen by 174.6% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.03% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

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 Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is 3i Infotech for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

3i Infotech

-39.03%

-0.84

46.42%

Sensex

4.83%

0.41

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.53%

EBIT Growth (5y)

-130.83%

EBIT to Interest (avg)

-1.88

Debt to EBITDA (avg)

3.14

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

1.40

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

14.72%

ROCE (avg)

-5.06%

ROE (avg)

6.25%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.05

EV to EBIT

-333.74

EV to EBITDA

14.69

EV to Capital Employed

1.06

EV to Sales

0.47

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

-0.10%

ROE (Latest)

21.50%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

16What is working for the Company

PAT(9M)

At Rs 52.95 cr has Grown at 179.14%

ROCE(HY)

Highest at 18.53%

-9What is not working for the Company

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 45.54 cr

PBDIT(Q)

Lowest at Rs -5.29 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at -3.02%

PBT LESS OI(Q)

Lowest at Rs -10.78 cr.

NON-OPERATING INCOME(Q)

is 143.05 % of Profit Before Tax (PBT

Loading Valuation Snapshot...

Here's what is working for 3i Infotech

Profit After Tax (PAT) - Quarterly

At Rs 18.43 cr has Grown at 76.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 10.45 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Here's what is not working for 3i Infotech

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -10.78 cr has Fallen at -1104.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -0.90 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -5.29 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at -3.02%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -10.78 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Non Operating Income - Quarterly

is 143.05 % 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 45.54 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Non Operating Income - Quarterly

Highest at Rs 35.82 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income