Check Before You Invest : N2N Technologies Ltd

BSE: 512279 NSE: ISIN: INE043F01011

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does N2N Technologies Ltd belong to?

N2N Technologies Ltd belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is N2N Technologies Ltd a good quality company?

N2N Technologies Ltd is a quality company, based on a 3-year financial track record.

Q.3 Is N2N Technologies Ltd undervalued or overvalued?

N2N Technologies Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is N2N Technologies Ltd a good buy now?

N2N Technologies Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Total Income growth of N2N Technologies Ltd?

N2N Technologies Ltd Operating Income growth is -12.42% for FY-2025, which is below its 3-year CAGR of NA%, indicating slower growth.

Q.2 Return on Assets of N2N Technologies Ltd?

N2N Technologies Ltd Return on Asset is 19.6%, which is above its 3-year historical median of 0.5%, indicating improved earnings on assets.

	Current Level	3-year Historic Median
NPM%	92.63	5.28
PPOP%	800	-125
RoA%	19.6	0.5

Q.3 Return on Equity (ROE) of N2N Technologies Ltd?

N2N Technologies Ltd Return on Equity is 23.9% for FY-2025, which is above its 3-year historical median of 0.7%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of N2N Technologies Ltd?

N2N Technologies Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 800% for FY-2025, which is above its 3-year median(-125%), indicating increasing margins.

Q.5 Net Profit Margin of N2N Technologies Ltd?

N2N Technologies Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 92.63% for FY-2025, which is above its 3-year median( 5.28%), indicating increasing margins.

Q.6 Total Asset growth of N2N Technologies Ltd?

N2N Technologies Ltd Total Asset growth is 519.81% for FY-2025, which is above its 3-year CAGR of 3.08%, indicating faster growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of N2N Technologies Ltd?

Promoters hold 50.37% of the N2N Technologies Ltd, with 24.60% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of N2N Technologies Ltd vs Industry Peers?

N2N Technologies Ltd AUM CAGR is 3.08%, compared to the 3-year industry median CAGR of 9.12%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of N2N Technologies Ltd vs industry peers

N2N Technologies Ltd profit metrics are in line with the industry median level of 3.6%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	3-year Industry Median
NPM%	92.63	14.65
PPOP%	800	-4.96
RoA%	19.6	1.1

Q.3 Operating efficiency of N2N Technologies Ltd vs industry peers?

N2N Technologies Ltd ROCE (-4) is below the industry median of (2.1); while the current ROE (0.7) are below than the 5-year average Industry ROE (1.9). This shows that the business is positioned in the bottom quartile of the industry.

Operating Efficiency

	Current Level	3-year Industry Median
NPM%	92.63	14.65
PPOP%	800	-4.96
RoA%	19.6	1.1
ROCE%	-4	2.1
ROE%	23.9	1.9

Valuation & price assessment

Q.1 Stock return of N2N Technologies Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of -4.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-4.2%	45%	40.6%	121%

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	3-year Historic Median	3-year Industry Median
Price to Earnings	7.34	50.85	33.22
Price to Book	1.83	1.44	1.01
Price to Sales	7.38	4.67	15.19
EV to EBITDA	7.65	6.86	10.00

Q.4 Valuation ratios of N2N Technologies Ltdvs historical and industry averages?

The current Price to book ratio (P/B) 1.83% is higher than its historical median of 1.44%, indicating that at the current price the stock is overvalued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

N2N Technologies Ltd return on invested capital (ROIC) is 19.59% for FY-2025, is higher than its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check more companies

1. Cholamandalam Fin.

2. TVS Holdings

3. Capri Global Capital

4. Maharashtra Scooters

9. Religare Enterprises

10. Pilani Investment

Check trending companies

1. Sai Life Sciences Ltd.

2. Adani Power Ltd.

3. HFCL Ltd.

4. Granules India Ltd.

5. Castrol India Ltd.