ScoreWhy is NIIT Learning Systems Ltd ?
1
High Management Efficiency with a high ROE of 18.74%
2
The company is Net-Debt Free
3
Poor long term growth as Net Sales has grown by an annual rate of 13.00% and Operating profit at 4.61% over the last 5 years
4
Flat results in Jun 26
- ROCE(HY) Lowest at 17.56%
- OPERATING PROFIT TO INTEREST (Q) Lowest at 10.51 times
- DEBT-EQUITY RATIO(HY) Highest at 0.21 times
5
With ROE of 14.5, it has a Very Attractive valuation with a 2.2 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -24.61%, its profits have risen by 0.7%
6
High Institutional Holdings at 39.83%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Below par performance in long term as well as near term
- Along with generating -24.61% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
8
With its market cap of Rs 3,343 cr, it is the second biggest company in the sector (behind Crizac)and constitutes 32.61% of the entire sector
- Its annual Sales of Rs 2,065.72 are 45.36% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to NIIT Learning should be less than 10%
- Overall Portfolio exposure to Other Consumer Services should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Consumer Services)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is NIIT Learning for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
NIIT Learning
-24.61%
-0.59
41.71%
Sensex
-4.36%
-0.32
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.00%
EBIT Growth (5y)
4.61%
EBIT to Interest (avg)
11.94
Debt to EBITDA (avg)
0.49
Net Debt to Equity (avg)
-0.37
Sales to Capital Employed (avg)
1.31
Tax Ratio
23.92%
Dividend Payout Ratio
17.95%
Pledged Shares
0
Institutional Holding
39.83%
ROCE (avg)
53.16%
ROE (avg)
18.74%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
18
Price to Book Value
2.18
EV to EBIT
9.63
EV to EBITDA
7.56
EV to Capital Employed
2.87
EV to Sales
1.35
PEG Ratio
NA
Dividend Yield
1.22%
ROCE (Latest)
29.89%
ROE (Latest)
14.52%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bullish
Dow Theory
Mildly Bearish
Bearish
OBV
No Trend
Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
NET SALES(Q)
Highest at Rs 565.08 cr
-13What is not working for the Company
ROCE(HY)
Lowest at 17.56%
OPERATING PROFIT TO INTEREST (Q)
Lowest at 10.51 times
DEBT-EQUITY RATIO(HY)
Highest at 0.21 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 5.17 times
INTEREST(Q)
Highest at Rs 8.84 cr
PBT LESS OI(Q)
At Rs 62.66 cr has Fallen at -6.5% (vs previous 4Q average
Loading Valuation Snapshot...
Here's what is working for NIIT Learning
Net Sales - Quarterly
Highest at Rs 565.08 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Here's what is not working for NIIT Learning
Interest - Quarterly
At Rs 8.84 cr has Grown at 52.94%
Quarter on Quarter (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Operating Profit to Interest - Quarterly
Lowest at 10.51 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 8.84 cr
in the last five quarters and Increased by 52.94 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 62.66 cr has Fallen at -6.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 67.00 CrMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.21 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 5.17 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 16.56 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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