Cigniti Technologies Ltd (CIGNITITEC) 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

Cigniti Tech.

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eMudhra

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Capillary Tech.

Seshaasai Tech.

Why is Cigniti Technologies Ltd ?

High Management Efficiency with a high ROE of 24.05%

Company has a low Debt to Equity ratio (avg) at 0 times

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CF(Y) Highest at Rs 159.90 Cr
NET SALES(Q) Highest at Rs 567.30 cr
PAT(9M) Higher at Rs 221.70 Cr

With ROE of 25.3, it has a Attractive valuation with a 4.6 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 9.52%, its profits have risen by 81.3% ; the PEG ratio of the company is 0.2

Majority shareholders : Promoters

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Cigniti Tech. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Cigniti Tech. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Cigniti Tech.

10.67%

0.24

39.02%

Sensex

4.68%

0.39

11.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.29%

EBIT Growth (5y)

20.73%

EBIT to Interest (avg)

53.66

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

2.27

Tax Ratio

25.29%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

19.56%

ROCE (avg)

47.00%

ROE (avg)

24.05%

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

4.64

EV to EBIT

15.23

EV to EBITDA

13.97

EV to Capital Employed

5.48

EV to Sales

2.34

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

35.96%

ROE (Latest)

25.28%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

21What is working for the Company

OPERATING CF(Y)

Highest at Rs 159.90 Cr

NET SALES(Q)

Highest at Rs 567.30 cr

PAT(9M)

Higher at Rs 221.70 Cr

PBDIT(Q)

Highest at Rs 96.20 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 16.96%

PBT LESS OI(Q)

At Rs 89.80 cr has Grown at 23.1% (vs previous 4Q average

EPS(Q)

Highest at Rs 30.04

-2What is not working for the Company

DPR(Y)

Lowest at 0.00%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.44 times

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Here's what is working for Cigniti Tech.

Net Sales - Quarterly

Highest at Rs 567.30 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 89.80 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Cash Flow - Annually

Highest at Rs 159.90 Cr

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 96.20 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Highest at 16.96%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 89.80 cr has Grown at 23.1% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 72.95 Cr

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Highest at Rs 82.60 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 82.60 cr has Grown at 29.3% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 63.89 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Earnings per Share (EPS) - Quarterly

Highest at Rs 30.04

in the last five quarters

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (Rs)

Here's what is not working for Cigniti Tech.

Debtors Turnover Ratio- Half Yearly

Lowest at 0.44 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income - Quarterly

Highest at Rs 20.40 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income