Why is Netweb Technologies India Ltd ?
1
Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 22.30%
- Healthy long term growth as Net Sales has grown by an annual rate of 63.44% and Operating profit at 61.43%
- Company has a low Debt to Equity ratio (avg) at 0 times
2
The company has declared Positive results for the last 9 consecutive quarters
- NET SALES(Latest six months) At Rs 604.93 cr has Grown at 51.09%
- PAT(Latest six months) At Rs 61.91 cr has Grown at 49.47%
- DPS(Y) Highest at Rs 2.50
3
With ROE of 23.3, it has a Very Expensive valuation with a 31.4 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 12.20%, its profits have risen by 38.9% ; the PEG ratio of the company is 3.5
4
Falling Participation by Institutional Investors
- Institutional investors have decreased their stake by -2.23% over the previous quarter and collectively hold 13.77% of the company
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors
How much should you buy?
- Overall Portfolio exposure to Netweb Technol. should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Netweb Technol. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Netweb Technol.
190.81%
0.19
63.02%
Sensex
-5.16%
0.44
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
69.93%
EBIT Growth (5y)
60.52%
EBIT to Interest (avg)
22.09
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
-0.43
Sales to Capital Employed (avg)
1.88
Tax Ratio
25.57%
Dividend Payout Ratio
12.37%
Pledged Shares
0
Institutional Holding
13.97%
ROCE (avg)
42.55%
ROE (avg)
22.25%
Valuation Key Factors 
Factor
Value
P/E Ratio
136
Industry P/E
21
Price to Book Value
48.22
EV to EBIT
102.20
EV to EBITDA
97.10
EV to Capital Employed
83.84
EV to Sales
12.66
PEG Ratio
1.69
Dividend Yield
0.05%
ROCE (Latest)
54.46%
ROE (Latest)
35.57%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Dow Theory
Bullish
Bullish
OBV
Bullish
Bullish
Technical Movement
27What is working for the Company
NET SALES(Q)
At Rs 773.70 cr has Grown at 69.6% (vs previous 4Q average
PBT LESS OI(Q)
At Rs 84.58 cr has Grown at 48.4% (vs previous 4Q average
PAT(Q)
At Rs 70.59 cr has Grown at 58.8% (vs previous 4Q average
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Loading Valuation Snapshot...
Here's what is working for Netweb Technol.
Net Sales - Quarterly
At Rs 773.70 cr has Grown at 69.6% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 456.13 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 84.58 cr has Grown at 48.4% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 56.98 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 70.59 cr has Grown at 58.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 44.46 CrMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)