Why is NIIT Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of -15.74% and Operating profit at -214.66% over the last 5 years
2
The company has declared Negative results for the last 3 consecutive quarters
- PBT LESS OI(Q) At Rs -8.60 cr has Fallen at -47.51%
- PAT(9M) At Rs 21.63 cr has Grown at -32.40%
- DEBTORS TURNOVER RATIO(HY) Lowest at 0.64 times
3
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -58.61%, its profits have fallen by -24.4%
4
Below par performance in long term as well as near term
- Along with generating -58.61% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Consumer Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is NIIT for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
NIIT
-58.62%
-1.34
43.59%
Sensex
4.83%
0.41
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
-15.74%
EBIT Growth (5y)
-214.66%
EBIT to Interest (avg)
8.09
Debt to EBITDA (avg)
0.55
Net Debt to Equity (avg)
-0.61
Sales to Capital Employed (avg)
0.44
Tax Ratio
20.58%
Dividend Payout Ratio
26.41%
Pledged Shares
0
Institutional Holding
22.97%
ROCE (avg)
11.08%
ROE (avg)
5.56%
Valuation Key Factors 
Factor
Value
P/E Ratio
35
Industry P/E
30
Price to Book Value
1.16
EV to EBIT
-18.61
EV to EBITDA
-104.63
EV to Capital Employed
1.43
EV to Sales
1.57
PEG Ratio
NA
Dividend Yield
1.09%
ROCE (Latest)
-7.66%
ROE (Latest)
3.28%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Movement
1What is working for the Company
NET SALES(Q)
Highest at Rs 104.95 cr
-18What is not working for the Company
PBT LESS OI(Q)
At Rs -8.60 cr has Fallen at -47.51%
PAT(9M)
At Rs 21.63 cr has Grown at -32.40%
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.64 times
NON-OPERATING INCOME(Q)
is 273.39 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 0.10
Loading Valuation Snapshot...
Here's what is working for NIIT
Net Sales - Quarterly
Highest at Rs 104.95 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for NIIT
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -8.60 cr has Fallen at -47.51%
Year on Year (YoY)MOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 2.16 cr has Fallen at -83.3%
Year on Year (YoY)MOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Non Operating Income - Quarterly
is 273.39 % 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
Earnings per Share (EPS) - Quarterly
Lowest at Rs 0.10
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Lowest at 0.64 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






