NIIT Limited : The shares of this small-cap company hit an upper circuit of 20 percent
NIIT Limited : Following the purchase of 8,00,000 equity shares by prominent investor Ramesh Shrichand Damani, the shares of this small-cap business saw a 20% increase to Rs 153.90 per share.
With a market valuation of Rs 2,082.67 crore, NIIT Ltd.’s shares were trading at Rs 153.90 each, up around 20% from the previous closing price of Rs 128.25 per share.
Cause of Increase
Expert investor Ramesh Shrichand Damani purchased 8,00,000 equity shares, or 0.59 percent of NIIT, at an average price of Rs 127.55 each, which resulted in positive movement in the company’s shares today. The value of this transaction is Rs 10.20 crore.
The Niit Ltd. promoters, the Pawar and Thadani families, purchased 35,38,051 equity shares from Hornbill Orchid India Fund last week, accounting for 2.62 percent of the firm.
Financial Status
Upon analyzing the company’s financial performance, sales increased by 32% from Rs 62.55 crore in Q1FY24 to Rs 82.48 crore in Q1FY25. Nevertheless, net profit had a 237 percent surge in the same period, rising from Rs 2.43 crore to Rs 8.20 crore.
Ratio analysis
According to the company’s key ratios, the return on capital employed climbed from 1.79 percent to 4.53 percent, while the return on equity improved from 0.31 percent in FY22–23 to 3.71 percent in FY23–24. For the 23rd and 24th fiscal years, the net profit margin (NPM) is 13.01 percent.
Ownership pattern
According to the business’s most current ownership pattern, retail shareholders control 35.34 percent of the company, foreign institutional investors own 17.43 percent, and the promoters own 34.66 percent.
A brief overview of the company
Solutions for skill development are offered by NIIT Limited to individuals, businesses, and organizations. The company offers managed training services that include curriculum development, custom content creation, administration, technology, learning delivery, and strategic sourcing.
