Why is NIIT Learning Systems Ltd ?
1
Poor long term growth as Net Sales has grown by an annual rate of 12.75% and Operating profit at 5.89% over the last 5 years
2
Flat results in Mar 26
- ROCE(HY) Lowest at 17.56%
- INTEREST(Q) At Rs 5.78 cr has Grown at 58.79%
- DEBT-EQUITY RATIO(HY) Highest at 0.21 times
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 11-May-26 and has generated -26.99% returns since then
- Multiple factors for the stock are Bearish like MACD, Bollinger Band, DOW and OBV
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 0.10% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -37.76% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Consumer Services)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is NIIT Learning for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
NIIT Learning
-38.73%
-0.99
38.17%
Sensex
-11.8%
-0.49
12.94%
Quality 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
18.10%
Pledged Shares
0
Institutional Holding
39.83%
ROCE (avg)
53.16%
ROE (avg)
18.74%
Valuation Key Factors 
Factor
Value
P/E Ratio
12
Industry P/E
16
Price to Book Value
1.80
EV to EBIT
7.63
EV to EBITDA
5.99
EV to Capital Employed
2.27
EV to Sales
1.07
PEG Ratio
NA
Dividend Yield
1.60%
ROCE (Latest)
29.89%
ROE (Latest)
14.52%
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Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bullish
Dow Theory
Bearish
Bearish
OBV
Mildly Bearish
No Trend
Technical Movement
9What 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