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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zaggle Prepaid

Cigniti Tech.

Seshaasai Tech.

R Systems Intl.

eMudhra

Network People

Datamatics Glob.

ASM Technologies

GHV Infra

Protean eGov

63 Moons 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 5 consecutive quarters

NET SALES(Q) Highest at Rs 579.40 cr
PBT LESS OI(Q) Highest at Rs 97.40 cr.
PBDIT(Q) Highest at Rs 103.90 cr.

With ROE of 25.3, it has a Very Attractive valuation with a 2.6 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -21.83%, its profits have risen by 76.7% ; the PEG ratio of the company is 0.1

Reducing Promoter Confidence

Promoters have decreased their stake in the company by -1.04% over the previous quarter and currently hold 54% of the company
Promoters decreasing their stake may signify reduced confidence in the future of the business

Below par performance in long term as well as near term

Along with generating -21.83% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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, Low Return

Absolute

Risk Adjusted

Volatility

Cigniti Tech.

-21.46%

-0.62

34.64%

Sensex

2.56%

0.21

12.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.79%

EBIT Growth (5y)

21.76%

EBIT to Interest (avg)

53.32

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

-0.19

Sales to Capital Employed (avg)

2.27

Tax Ratio

25.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

20.90%

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

2.57

EV to EBIT

7.62

EV to EBITDA

7.09

EV to Capital Employed

2.93

EV to Sales

1.21

PEG Ratio

0.13

Dividend Yield

ROCE (Latest)

35.96%

ROE (Latest)

25.29%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

14What is working for the Company

NET SALES(Q)

Highest at Rs 579.40 cr

PBT LESS OI(Q)

Highest at Rs 97.40 cr.

PBDIT(Q)

Highest at Rs 103.90 cr.

OPERATING PROFIT TO NET SALES(Q)

Highest at 17.93%

PAT(Q)

Highest at Rs 83.88 cr.

-1What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.39 times

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Here's what is working for Cigniti Tech.

Net Sales - Quarterly

Highest at Rs 579.40 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 97.40 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 Profit (PBDIT) - Quarterly

Highest at Rs 103.90 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 17.93%

in the last five quarters

MOJO Watch

Company's efficiency has improved

Operating Profit to Sales

Profit After Tax (PAT) - Quarterly

Highest at Rs 83.88 cr.

in the last five quarters

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Cigniti Tech.

Debtors Turnover Ratio- Half Yearly

Lowest at 4.39 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio