NIIT Learning (NIITMTS)

FairStock Score: 42/100 — MIXED

Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

NIIT Learning presents a classic tension between quality and price. On the quality side, the numbers are encouraging: a 17.85% return on equity, a 28.18% return on capital employed, and a lean balance sheet with debt at just 0.19 times equity. This is the kind of discipline I admire. The latest quarter's sales of ₹500 Cr with net profit of ₹74 Cr implies a respectable 14.8% margin. However, my friend Graham would remind us to look at the growth rate. Sales have grown 19.29%, but profit has barely moved at 1.97%. That tells me the business is investing heavily or facing margin compression. A P/E of 21.07 might be fair if earnings accelerate, but at a PEG of 1.41 relative to expected growth, there's no margin of safety. Book value is ₹47.20, yet the market price is ₹320.35 - seven times book. That is a high price to pay for a business with so-so near-term profit growth. The Piotroski score of 7/9 suggests a fundamentally sound company, but the FairStock score of 41/100 warns me to be cautious. Promoter holding is only 34.19%, not a red flag, but not a strong insider vote either. Dividend yield of 0.89% is negligible. This is a decent business, but a fair price is different from a wonderful price. I would wait for a better price or clearer evidence that profit growth has caught up with sales momentum.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer