Check Before You Invest : Cigniti Technologies Ltd

Snapshot

Q.1 Which industry/sub-sector does Cigniti Technologies Ltd belong to?

Cigniti Technologies Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Cigniti Technologies Ltd a good quality company?

Cigniti Technologies Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Cigniti Technologies Ltd undervalued or overvalued?

Cigniti Technologies Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Cigniti Technologies Ltd a good buy now?

Cigniti Technologies Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Cigniti Technologies Ltd?

Cigniti Technologies Ltd revenue growth is 27.7% for FY-2025, which is above its 5-year CAGR of 27.37%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Return on capital employed is 27.61% for FY-2025, which is above its 5-year historical median of 25.38%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Return on Asset is 16.63%, which is above its 5-year historical median of 15.21%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Return on equity is 21.17% for FY-2025, which is in line with its 5-year historical median of 20.2%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Cash conversion cycle is 49 days, in line with its 5-year historical median of 49 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.37	1.27
ROE	21.17	20.2
ROCE	27.61	25.38
Cash Conversion Cycle	49 days	49 days

Q.6 Gross Profit margin of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.8% for FY-2025, which is in line with its 5-year median of 21.8%, indicating stable margins.

Q.7 Operating Profit Margin of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.53% for FY-2025, which is in line with its 5-year median of 19.53% indicating stable margins.

Q.8 Net Profit Margin of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Net Profit Margin is 12.14% for FY-2025, is in line with with its 5-year median of 12.14%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	21.8	21.8
Operating Profit Margin	19.53	19.53
Net Profit Margin	12.14	12.14

Q.9 Debt to Equity ratio of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Cigniti Technologies Ltd?

Cigniti Technologies Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Cigniti Technologies Ltd?

Promoters hold 54.00% of the Cigniti Technologies Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Cigniti Technologies Ltd vs industry peers?

Cigniti Technologies Ltd revenue CAGR is 27.37%, compared to the industry median CAGR of 10.86%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	27.7	10.9
Gross Profit Growth	48.7	18.3
Operating Profit Growth	56.8	NAN
Net Profit Growth	28.4	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.37	0.5
ROE	21.17	5.83
ROCE	27.61	6.79
Cash Conversion Cycle (days)	49.49	47

Valuation & price assessment

Q.1 Stock return of Cigniti Technologies Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 11.1% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	11.1%	27.5%	13.5%	-9%

Q.3 Valuation ratios of Cigniti Technologies Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	17.51	30.03	47.37
Price to Book	4.37	5.26	2.63
Price to Sales	2.66	3.86	4.79
EV to EBITDA	11.37	17.21	16.48

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