NIIT Learning (NIITMTS)
Slow GrowerFairStock Score: 42/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹240.96 |
| Market Cap | ₹3,320.78 Cr |
| P/E Ratio | 13.21 |
| ROCE | 28.18% |
| ROE | 17.85% |
| Dividend Yield | 1.35% |
| Profit Growth | 39.94% |
| Debt/Equity | 0.21 |
| Sales Growth | 7.4% |
| Promoter Holding | 34.19% |
| 52-Week Range | ₹203.3 — ₹443.9 |
| Sector | Other Consumer Services |
| Book Value | ₹112.25 |
Strengths
- Return on equity of 17.85% and return on capital employed of 28.18% show strong capital efficiency
- Low debt/equity of 0.19 provides financial stability and downside protection
- Piotroski F-Score of 7/9 indicates healthy fundamentals and operational soundness
- Sales growth of 19.29% demonstrates business expansion and demand
- Latest quarter net profit margin of 14.8% (₹74 Cr on ₹500 Cr sales) is respectable
Concerns
- Profit growth of only 1.97% lags sales growth significantly, pointing to margin pressure or heavy reinvestment
- P/B of 6.79 means investors are paying a steep premium over book value of ₹47.20
- Dividend yield of 0.89% is minimal, limiting income return while waiting for capital gains
- Promoter holding at 34.19% is moderate and not a strong insider alignment signal
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer