Why is Network People Services Technologies Ltd ?
1
High Management Efficiency with a high ROE of 31.77%
2
The company is Net-Debt Free
3
Healthy long term growth as Net Sales has grown by an annual rate of 52.06% and Operating profit at 45.73%
4
The company has declared Positive results for the last 3 consecutive quarters
- NET SALES(Latest six months) At Rs 118.46 cr has Grown at 97.53%
- PAT(Latest six months) At Rs 23.29 cr has Grown at 87.67%
5
With ROE of 9.3, it has a Very Expensive valuation with a 7.6 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 -23.76%, its profits have risen by 25.1% ; the PEG ratio of the company is 4.6
6
Majority shareholders : Promoters
7
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 3.29% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -23.76% returns
How much should you hold?
- Overall Portfolio exposure to Network People 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 Network People for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Network People
-23.8%
-0.42
56.91%
Sensex
-3.95%
-0.29
13.47%
Quality key factors
Factor
Value
Sales Growth (5y)
52.06%
EBIT Growth (5y)
45.73%
EBIT to Interest (avg)
36.31
Debt to EBITDA (avg)
0.13
Net Debt to Equity (avg)
-0.67
Sales to Capital Employed (avg)
1.31
Tax Ratio
25.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
10.10%
ROCE (avg)
-214.68%
ROE (avg)
31.77%
Valuation Key Factors 
Factor
Value
P/E Ratio
75
Industry P/E
21
Price to Book Value
7.60
EV to EBIT
71.17
EV to EBITDA
55.78
EV to Capital Employed
21.06
EV to Sales
14.01
PEG Ratio
4.60
Dividend Yield
0.12%
ROCE (Latest)
28.65%
ROE (Latest)
9.26%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
18What is working for the Company
NET SALES(Latest six months)
At Rs 118.46 cr has Grown at 97.53%
PAT(Latest six months)
At Rs 23.29 cr has Grown at 87.67%
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.87 times
NON-OPERATING INCOME(Q)
is 34.09 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Network People
Net Sales - Latest six months
At Rs 118.46 cr has Grown at 97.53%
Year on Year (YoY)MOJO Watch
Sales trend is very positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Latest six months
At Rs 23.29 cr has Grown at 87.67%
Year on Year (YoY)MOJO Watch
PAT trend is very positive
PAT (Rs Cr)
Here's what is not working for Network People
Non Operating Income - Quarterly
is 34.09 % 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
Debtors Turnover Ratio- Half Yearly
Lowest at 1.87 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






