Why is Netweb Technologies India Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.30%
- Healthy long term growth as Net Sales has grown by an annual rate of 63.44% and Operating profit at 61.43%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
The company has declared Positive results for the last 9 consecutive quarters
- PAT(9M) At Rs 104.52 cr has Grown at 47.05%
- DPS(Y) Highest at Rs 2.50
- NET SALES(9M) Higher at Rs 1,019.58 cr
3
With ROE of 23.3, it has a Very Expensive valuation with a 31.3 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 11.66%, its profits have risen by 38.9% ; the PEG ratio of the company is 3.5
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -2.23% over the previous quarter and collectively hold 13.77% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
How much should you hold?
- Overall Portfolio exposure to Netweb Technol. 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 Netweb Technol. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Netweb Technol.
9.71%
0.19
62.90%
Sensex
4.51%
0.45
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
63.44%
EBIT Growth (5y)
61.43%
EBIT to Interest (avg)
25.91
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.43
Sales to Capital Employed (avg)
1.88
Tax Ratio
25.89%
Dividend Payout Ratio
12.37%
Pledged Shares
0
Institutional Holding
13.77%
ROCE (avg)
42.65%
ROE (avg)
22.30%
Valuation Key Factors 
Factor
Value
P/E Ratio
134
Industry P/E
28
Price to Book Value
31.33
EV to EBIT
99.09
EV to EBITDA
92.41
EV to Capital Employed
54.20
EV to Sales
13.21
PEG Ratio
3.52
Dividend Yield
0.08%
ROCE (Latest)
54.70%
ROE (Latest)
23.30%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
16What is working for the Company
PAT(9M)
At Rs 104.52 cr has Grown at 47.05%
DPS(Y)
Highest at Rs 2.50
NET SALES(9M)
Higher at Rs 1,019.58 cr
OPERATING PROFIT TO NET SALES(Q)
Highest at 14.97%
-6What is not working for the Company
OPERATING CF(Y)
Lowest at Rs -13.21 Cr
NET SALES(Q)
At Rs 303.72 cr has Fallen at -6.6% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for Netweb Technol.
Profit After Tax (PAT) - Latest six months
At Rs 61.91 cr has Grown at 49.47%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 14.97%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Dividend per Share (DPS) - Annually
Highest at Rs 2.50
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Here's what is not working for Netweb Technol.
Operating Cash Flow - Annually
Lowest at Rs -13.21 Cr and Fallen
each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
At Rs 303.72 cr has Fallen at -6.6% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 325.23 CrMOJO Watch
Near term sales trend is negative
Net Sales (Rs Cr)






