Why is NIIT Learning Systems Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 8.32% and Operating profit at 0.34% over the last 5 years
2
Negative results in Sep 25
- INTEREST(Latest six months) At Rs 13.38 cr has Grown at 105.85%
- PAT(Q) At Rs 51.05 cr has Fallen at -10.1% (vs previous 4Q average)
- DEBT-EQUITY RATIO(HY) Highest at 0.60 times
3
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -9.47% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
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 Learning for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
NIIT Learning
-9.47%
-0.27
34.50%
Sensex
7.21%
0.61
11.73%
Quality key factors
Factor
Value
Sales Growth (5y)
8.32%
EBIT Growth (5y)
0.34%
EBIT to Interest (avg)
11.47
Debt to EBITDA (avg)
0.42
Net Debt to Equity (avg)
-0.37
Sales to Capital Employed (avg)
1.35
Tax Ratio
29.42%
Dividend Payout Ratio
33.33%
Pledged Shares
0
Institutional Holding
41.18%
ROCE (avg)
57.04%
ROE (avg)
18.94%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
28
Price to Book Value
4.30
EV to EBIT
18.36
EV to EBITDA
14.79
EV to Capital Employed
6.28
EV to Sales
2.96
PEG Ratio
NA
Dividend Yield
0.72%
ROCE (Latest)
34.21%
ROE (Latest)
16.38%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
Mildly Bullish
Mildly Bullish
Technical Movement
5What is working for the Company
NET SALES(Q)
Highest at Rs 475.72 cr
PBDIT(Q)
Highest at Rs 92.71 cr.
-16What is not working for the Company
INTEREST(Latest six months)
At Rs 13.38 cr has Grown at 105.85%
PAT(Q)
At Rs 51.05 cr has Fallen at -10.1% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Highest at 0.60 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 0.53 times
EPS(Q)
Lowest at Rs 3.43
Loading Valuation Snapshot...
Here's what is working for NIIT Learning
Net Sales - Quarterly
Highest at Rs 475.72 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 92.71 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Here's what is not working for NIIT Learning
Profit After Tax (PAT) - Quarterly
At Rs 51.05 cr has Fallen at -10.1% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 56.81 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Quarterly
Highest at Rs 7.31 cr
in the last five quarters and Increased by 20.43 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 3.43
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 0.60 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 0.53 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






