Why is Cigniti Technologies Ltd ?
1
High Management Efficiency with a high ROE of 24.05%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
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.
4
With ROE of 25.3, it has a Attractive valuation with a 3.9 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 8.21%, its profits have risen by 76.7% ; the PEG ratio of the company is 0.2
5
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
6
Consistent Returns over the last 3 years
- Along with generating 8.21% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods
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, Medium Return
Absolute
Risk Adjusted
Volatility
Cigniti Tech.
8.59%
0.25
34.31%
Sensex
7.18%
0.64
11.21%
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
0
Pledged Shares
0
Institutional Holding
20.90%
ROCE (avg)
47.00%
ROE (avg)
24.05%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
27
Price to Book Value
3.94
EV to EBIT
12.01
EV to EBITDA
11.17
EV to Capital Employed
4.61
EV to Sales
1.91
PEG Ratio
0.19
Dividend Yield
NA
ROCE (Latest)
35.96%
ROE (Latest)
25.29%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Movement
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
Loading Valuation Snapshot...
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 quartersMOJO 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 quartersMOJO 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 quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 17.93%
in the last five quartersMOJO 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 quartersMOJO 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 periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






