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NIIT Ltd

NSE: NIITLTD BSE: 500304

75.75

(-1.28%)

Sat, 14 Feb 2026, 01:13 pm

NIIT Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are thoroughly covered by earnings (8.5x coverage).
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
  • NIIT's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • NIIT's dividend is above the markets top 25% of dividend payers in India (3.08%).
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Cons

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

future

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Pros

  • Cash flow for NIIT is expected to increase by more than 50% in 2 years time.
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Cons

  • NIIT's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • NIIT's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • NIIT's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.2%.
  • NIIT's earnings are expected to decrease over the next year.
  • NIIT's net income is expected to decrease over the next 2 years.
  • NIIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Performance (ROE) is not expected to exceed the current IN IT industry average.
  • A decline in NIIT's performance (ROE) is expected over the next 3 years.
  • NIIT's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • NIIT's revenue is expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
  • NIIT's revenue growth is positive but not above the India market average.

health

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Pros

  • NIIT is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • NIIT is profitable, therefore cash runway is not a concern.
  • NIIT is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (87.5%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 28.3x debt.
  • NIIT's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (21.3% vs 3.5% today).
  • NIIT's level of debt (3.5%) compared to net worth is satisfactory (less than 40%).
  • Low level of unsold assets.
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Cons

  • Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).

management

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Pros

  • The tenure for the NIIT board of directors is about average.
  • Sapnesh's remuneration is lower than average for companies of similar size in India.
  • Sapnesh's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the NIIT management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • NIIT is covered by less than 3 analysts.
      • NIIT has significant price volatility in the past 3 months.

      past

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      Pros

      • NIIT's 1-year earnings growth exceeds its 5-year average (1282.6% vs 81.7%)
      • NIIT has delivered over 20% year on year earnings growth in the past 5 years.
      • NIIT used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
      • NIIT made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
      • NIIT's earnings growth has exceeded the IN IT industry average in the past year (1282.6% vs 6%).
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      Cons

      • NIIT's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).

      value

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      Pros

      • NIIT is good value based on earnings compared to the IN IT industry average.
      • NIIT is good value based on earnings compared to the India market.
      • NIITLTD outperformed the Market in India which returned -14.5% over the past year.
      • NSEI:NIITLTD is up 7.5% along with the India market (8%) over the past month.
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      Cons

      • NIIT's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • NIIT's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • NIIT is overvalued based on assets compared to the IN IT industry average.
      • NIIT earnings are not expected to grow next year, we can't assess if its growth is good value.
      • NIITLTD underperformed the IT industry which returned -10.1% over the past year.
      • NSEI:NIITLTD is up 7.5% underperforming the IT industry which returned 8.5% over the past month.

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