NIIT Ltd Stock Analysis

BSE: 500304 | NSE: NIITLTD | IT - Education | Mid Cap

BSE Share Price Jan 24, 18:01
406.25 -54.70 (-11.87%)

DeciZen - Make an Informed Decision on NIIT

Overall Rating

1. Quality

2. Valuation

Overvalued
P/E P/S EV/EBITDA

3. Price Trend

FAQ's

1. Is NIIT Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that NIIT Ltd is a average quality company.

2. Is NIIT Ltd undervalued or overvalued?

The key valuation ratios of NIIT Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is NIIT Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Strong which suggest that the price of NIIT Ltd is likely to Rise in the short term. However, please check the rating on Quality and Valuation before investing

10 Year X-Ray of NIIT:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
NIIT Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
ROCE % 5.2%2.5%1.3%-6.3%1.3%1.2%2.7%3.6%27.1%3.6%-
Value Creation Index -0.6-0.8-0.9-1.5-0.9-0.9-0.8-0.70.9-0.8-

Growth Parameters

Growth Parameters Colour Code Guide
Sales 738641520349381365362388406368408
YoY Gr. Rt. %--13.1%-18.9%-33%9.4%-4.4%-0.8%7.1%4.8%-9.4%-
Adj EPS 10.1-0.4-3.4-0.2-0.30.71.3243.76.2
YoY Gr. Rt. %--87%-376.9%NANANANA85.9%1717.4%-84.5%-
BVPS (₹) 29.327.425.449.149.146.747.147.6107.4108.998
Adj Net Profit 16.52.1-5.9-56.8-2.4-5.611.922.13395383
Cash Flow from Ops. 95.555.64.53651.430.917.6-16.328.584.7-
Debt/CF from Ops. 1.22.828.73.53.45.89.8-13.10.90.1-

CAGR

CAGR Colour Code Guide
9 Years 5 Years 3 Years 1 Years
Sales -7.4%-0.7%0.6%-9.4%
Adj EPS 15.7%NA73.7%-84.5%
BVPS 15.717.332.21.4
Share Price 25.5% 39.1% 67.5% 115.2%

Key Financial Parameters

Performance Ratio Colour Code Guide
Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity % 3.70.5-1.4-9.2-0.3-0.71.52.8293.46
Op. Profit Mgn % 10.16.15-2.11.50.33.11.67.9-8.15.6
Net Profit Mgn % 2.20.3-1.1-16.3-0.6-1.53.35.783.614.420.3
Debt to Equity 0.20.40.30.20.20.20.20.3000
Working Cap Days 280313350420350328233452578461883
Cash Conv. Cycle 48587687503222252826758

Recent Performance Summary

Net Profit is growing at healthy rate in last 3 years 73.68%

Sales growth is good in last 4 quarters at 14.63%

Return on Equity has declined versus last 3 years average to 6.00%

Sales growth has been subdued in last 3 years 0.58%

Latest Financials - NIIT Ltd.

Standalone Consolidated
TTM EPS (₹) 6.2 14.4
TTM Sales (₹ Cr.) 408 1,144
BVPS (₹.) 98 106.9
Reserves (₹ Cr.) 1,283 1,402
P/BV 4.70 4.31
PE 74.39 32.11
From the Market
52 Week Low / High (₹) 136.50 / 507.00
All Time Low / High (₹) 11.41 / 507.00
Market Cap (₹ Cr.) 6,162
Equity (₹ Cr.) 26.7
Face Value (₹) 2
Industry PE 69.3

Management X-Ray of NIIT :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

Analyst's Notes

News

About NIIT Ltd

NIIT is a provider of global information technology (IT) learning solutions. The company was incorporated in 1981; currently the company offers learning solutions to individuals, enterprises and institutions across 40 countries.

NIIT offers training solutions in area of IT, business process outsourcing (BPO), banking, finance and insurance, executive management education, and communication and professional life skills.

The company operates the largest learning content development facility in the world with capacity of reaching 5 million learners every year.

The company has created brands like Edgeineers, e guru, element k, Evolv, Globalnet+, GNIIT, HiWEL, ifbi, Imperia, litmus, Swift and Uniqua.

NIIT has alliances with global leaders such as Adobe, Cisco, Citrix, EMC, Intel, Microsoft, Oracle, SAS, Sun and provides training on their platforms. For its academic alliance, the company has collaborated with 100 leading educational institutes across India, China, New Zealand, UK, Malaysia, Australia, USA, Canada and Ireland.

NIIT’s Institute of Finance Banking and Insurance (IFBI) is been launched in partnership with various leading financial institutions such as ICICI Securities, HDFC Bank, Kotak Mahindra Bank, Yes Bank, ICICI Lombard and Infosys (Finacle).

The company is also forming alliances with various Government organisations to launch training programs.

NIIT’s school learning solutions offers IT program

Milestones

2010

-MDI & NIIT Imperia sign Memorandum of Understanding (MoU) to deliver Executive Management Programs
-GNOU & NIIT bring together education and Skill Building to enhance Employable Talent Pool
-NIIT launches specialized training programs to develop human capital in Malaysia

2011

-NIIT launches 'NIIT eGuru Math Lab' at Ryan International School, Bangalore.
-Ministry of Agriculture Ties Up with NIIT to promote IT usage for Livestock Management.
-NIIT Unveils the first 'NIIT One World' Centre in Coimbatore
-NIIT offers India's first Cloud Campus.
-NIIT IFBI Launches Preparatory courses for PSU banks' Probationary Officers and Clerical Recruitment Exams
-NIIT and NSDL form joint venture to fuel growth in Skills & Employability for your across India

2012

-KPMG and NIIT Imperia launch pioneering tax training programs for corporate and aspiring professionals
-NIIT unveils 'The Turning Point’: an all-new Cloud Centric Curriculum to develop future-ready IT professionals
-NIIT and Department of Income Tax strengthen partnership to create a certified pool of - Tax Return Preparers (TRPs).
-Google introduces 'Google Web Academy' in India in alliance with NIIT
-NIIT forays into Bangladesh; launches Bangladesh's first Cloud Campus

Awards

NIIT was ranked among the ‘Top 20 Companies in the IT Training Industry’ in 2008 by TainingOutsourcing.com.

NIIT was acknowledged for its innovation in ICT in Education by UNESCO in 2008.

NIIT’s brand HiWEL received ‘Digital Opportunity Award’ by World Information Technology Services Alliance (WITSA) in 2008.

2011 - Ranked among the Top 20 Best IT Employers, in DQ-CMR’s Best Employers Survey 2011Conferred with the ‘Excellence in Training’ Award at ASIA’s Best Employer Brand Awards 2011Best IT Implementation of the year” award conferred to three projects by PC Quest in 2011

2012 - Featured in the Leaders category in ‘2012 Global Outsourcing 100 service providers’ listReceived Award for Excellence in “HR through Technology” and “Training” at ASIA's Best Employer Brand Awards 2012NIIT Technologies' “Intranet Prahari” bags Skoch Digital Inclusion Award 2012 for the ‘Best Process Automation’Recognized as a Special Category Winner, ranked No.3 in Best Companies in Career Growth category in Great Place to work study, 2012Ranked No. 6 in “DQ-CMR Best IT Employer Survey 2012 - Ranked No.1 across all industries globally in the 2012 ASTD (American Society for Training and Development) BEST Awards

2013 - Listed in the Forbes Asia's 200 Best Under a Billion companies, 2013Ranked 6th in Top Employer category at Asia's Best Employer Brand Awards, 2013Conferred with Best in HR Strategy in line with Business at Asia's Best Employer Brand Awards, 2013Recognized for Excellence in Training at Asia's Best Employer Brand Awards, 2013

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