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 68.35% and Operating profit at 70.11%
4
Positive results in Mar 26
- NET SALES(Q) Highest at Rs 61.98 cr
- PAT(Q) Highest at Rs 12.26 cr.
- EPS(Q) Highest at Rs 5.88
5
With ROE of 9.3, it has a Very Expensive valuation with a 7.8 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 -22.34%, its profits have fallen by -7.5%
6
Majority shareholders : Promoters
7
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -0.51% in the last 1 year, its fall in the stock was much higher with a return of -22.34%
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
-22.34%
-0.37
60.02%
Sensex
-5.98%
-0.45
13.24%
Quality key factors
Factor
Value
Sales Growth (5y)
68.35%
EBIT Growth (5y)
70.11%
EBIT to Interest (avg)
33.97
Debt to EBITDA (avg)
0.13
Net Debt to Equity (avg)
-0.67
Sales to Capital Employed (avg)
1.31
Tax Ratio
25.89%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
10.15%
ROCE (avg)
-214.68%
ROE (avg)
31.77%
Valuation Key Factors 
Factor
Value
P/E Ratio
85
Industry P/E
20
Price to Book Value
7.85
EV to EBIT
76.14
EV to EBITDA
62.37
EV to Capital Employed
21.82
EV to Sales
16.21
PEG Ratio
NA
Dividend Yield
0.12%
ROCE (Latest)
28.65%
ROE (Latest)
9.27%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
RSI
No Signal
Bollinger Bands
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
19What is working for the Company
NET SALES(Q)
Highest at Rs 61.98 cr
PAT(Q)
Highest at Rs 12.26 cr.
EPS(Q)
Highest at Rs 5.88
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.87 times
NON-OPERATING INCOME(Q)
is 40.68 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Network People
Net Sales - Quarterly
Highest at Rs 61.98 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 61.98 cr has Grown at 55.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 39.82 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 12.26 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 5.88
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for Network People
Non Operating Income - Quarterly
is 40.68 % 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
Non Operating Income - Quarterly
Highest at Rs 6.48 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income






