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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Sify Technologies Limited (XNAS:SIFY) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SIFY
Name:
Sify Technologies Limited (XNAS:SIFY)
Sector:
3.21B
Industry:
Telecom Services
CEO:
Mr. Raju Vegesna
Total Employees:
3,641
Our Technological Advancement Rating
Our Rating:
A+
Technological advancement compared to industry is 409.93% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SIFY TECHNOLOGIES LIMITED(SIFY) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND TELECOM SERVICES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
2.08
One Month Price Target:
$2.1
Six Month Price Target :
$2.18
Likely Price in One Year's Time:
Ticker:
$2.27
Likely Trading Range Today Under (Normal Volatility)
$2.06
Price Upper limit ($) :
$2.11
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$1.83
This week:
$1.51
This month :
$.95
Other Primary facts
Market Cap:
379.58M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
182.74M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
79.25%
-25.66%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$3.26
$2.71
$0.90
$1.45
Medium risk (<10%) entry points
Buy Call
Sell Call
$2.53
Buy Put:
Sell Put:
$2.42
$1.63
$1.74
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SIFY
Sharpe Ratio:
3.68%
Comparison:
SIFY, is amongst the top 20% stocks with highest risk-adjusted returns
Sharpe ratio is 278.20% higher than the industry
& ratio is 61.33% higher than the market/S&P 500 average
Average Returns/Yield of
SIFY
Daily returns:
0.23%
Weekly returns:
1.16%
Monthly returns:
4.63%
Yearly returns:
17.77%
Comparison of returns:
Average annual returns/yield (last 3 years) is 212.29% above industry average
Classification:
SIFY, is amongst the top 20% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.39
Statistical test of Returns:
SIFY has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
6.05%
Weekly Volatility:
13.52%
Monthly Volatility:
27.05%
Yearly Volatility:
93.70%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
2.73%
Volatility in last five trading days has been -54.86% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-12.19%
Weekly VaR:
-27.26%
Monthly VaR:
-54.52%
How Much Can the price of
SIFY
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-46%
Worst case (decline):
>85%
This translates to price declining to:
$1.13
This translates to price declining to:
$0.31
Severe Crash Probability
Risk of crash in next 6/12 months: Very high (>70%)
What is Value at Risk (VaR)?
Risk Fundamentals
SIFY is a 284.79% riskier investment compared to the market/S&P 500 & is 229.65% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is 77.47% above industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SIFY
Beta in relation to market/S&P 500--1.37
Expected beta in 1 year's time:
1.042
Expected beta in 3 year's time:
1.473
Unlevered (debt free) Beta:
1.055
Beta in relation to Nasdaq (XNAS):
1.037
Beta in relation to all global stocks::
0.481
Beta Comparison & Analysis
Beta of competitors/peers::
1.78
Beta is -22.86% lower than peers
Average Industry Beta:
0.819
Beta is 67.77% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
14.99%
Sustainable growth rate is 47.44% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
0.429
Alpha is 376.35% above industry average alpha yield
Alpha is 2734% higher than market/& is unsustainably high
Analysis of Cost of Capital of
SIFY
Equity cost of capital:
0.126
Equity cost of capital is 43.39% above industry mean WACC
Unlevered (without debt) cost of capital:
9.65%
Before-tax cost of debt:
8.73%
After-tax cost of debt:
6.90%
Overall debt rating:
Non-investment grade (junk/speculative grade
Weighted average cost of capital (WACC):
6.90%
WACC is 91.84% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$147.89
Revenue growth rate per share of (3Y):
0.03
Annual revenue growth rate is -96.11% below industry average
EPS:
$0.09
Expected Annual growth rate of EPS (3Y):
-72.07%
Expected future EPS growth rate is -390.99% lower than the Telecom Services industry
Free cash flow (FCF) per share:
-
Balance sheet equity growth per share: -100.00%
Equity growth rate per share is 528.63% higher than the industry
Debt per share
$29.63
EBITDA per share
$33.68
Valuation Analysis Today of
SIFY
P/E Ratio:
-
P/E Ratio of Competitors/Peers:
13.71
-
Stock price/value with industry average P/E ratio: $2.66
SIFY is -21.68% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
0.01
Price to sales ratio is -99.78% below the industry mean
P/B (Price to book value ratio):
0.03
-
-
Net income growth rate (3Y):
62.66%
Net income growth rate is -84.60% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
41.13%
Net debt to equity ratio:
50.39%
Debt to assets ratio:
14.77%
Net debt to assets ratio:
18.10%
Debt-to-asset ratio is -80.68% below industry average
Ability to repay debt:
Interest coverage ratio:
6
Interest coverage ratio is 282.44% more than industry average
Looking forward:
Debt growth rate:
5.11%
Annual debt growth is -100% lower than industry average debt growth rate
Debt repayment rate in previous year: 4.01%
Analysis of Key Statistics
Correlation of price movement with the market:
0.282
Statistical significance of correlation:
SIFY has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.461
Stock price is -38.81% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.461
Correlation of price movement with Nasdaq (^IXIC):
0.006
Covariance of price movement with the market:
0.022
Kurtosis
51.987
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
4.506
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
SIFY
Gross Profit Margin Ratio:
161%
Operating Profit Margin Ratio:
13.46%
Operating profit margin is 330.11% higher than the industry
Net Profit Margin Ratio:
161%
Effective Tax Rate:
26.65%
Effective tax rate is -17.43% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
10.28%
Return on equity (ROE) is -367.83% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
3.69%
Return on assets (ROA) is -2126.32% lower than the industry
Financial Leverage:
1.2x
Current Ratio:
1.02
Current ratio is -37.02% below industry average
Cash Conversion Cycle (days):
-59.3
Cash conversion cycle is -183.78% below industry average
The remaining useful life of property plant & equipment is: 4.3 years
Stock based compensation to net income ratio:
2.96%
In-depth Efficiency Analysis
Revenue generated per employee:
7.4M
Each employee generates 638% more revenue than industry average revenue per employee
EBITDA generated per employee:
1.7M
Each employee generates 390% more EBITDA than industry average revenue per employee
Profit generated per employee:
371.9K
Each employee generates 257% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
881.8K
Each employee generates 1430% more free cash flow than industry average revenue per employee
Assets/Capital per employee
5.3M
Each employee generates 1430% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
SIFY
PERION NETWORK LTD (XNAS:PERI)
HEMISPHERE MEDIA GROUP, INC. (XNAS:HMTV)
CHICKEN SOUP FOR THE SOUL ENTERTAINMENT INC. (XNAS:CSSE)
Luokung Technology Corp. (XNAS:LKCO)
QUTOUTIAO INC. (XNAS:QTT)
WiMi Hologram Cloud Inc. (XNAS:WIMI)
TRUE
PT SOLUSI SINERGI DIGITAL Tbk (XIDX:WIFI)
LIBERTY TRIPADVISOR HOLDINGS, INC. (XNAS:LTRPA)
Current Analyst Ratings
Strong buy�0%
Buy�4%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
27.03B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
16.11B
10.91B
-
-
4.87B
-
3.28B
8.15B
-
1.03B
3.28B
6.15B
3.64B
1.35B
1.85B
492.00M
1.35B
Statement of Cash Flow
Date:
Period:
2.84B
Differed Income Tax :
68.41M
Stock Based Compensation :
40.05M
Change in Working Capital :
1.05B
Accounts Receivables:
1.08B
Other Working Capital:
- 118071.00K
Other Non-Cash Items:
1.44B
Net Cash Provided by Operating Activities:
6.97B
Investments in PP&E:
- 3448729.00K
Net Acquisitions:
-
Purchases of Investments:
- 5513.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/21
2021
FY
5.10B
-
5.10B
9.73B
1.41B
962.95M
17.21B
17.04B
14.60M
679.99M
212.24M
636.47M
876.40M
19.46B
-
36.66B
3.61B
6.32B
-
1.75B
5.24B
16.92B
5.42B
192.40M
6.58B
-
23.50B
1.84B
- 8724570.00K
90.4M
19.96B
March 31, 2021 at 6:00:00 AM
24.27B
13.17B
36.66B
-
11.74B
6.6B
-
- 164370.00K
- 3618612.00K
- 226155.00K
-
-
-
844.53M
618.37M
- 3372.00K
3.96B
5.38B
1.42B
6.97B
- 3756035.00K
3.21B
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
SIFY
2023
2024
2025
2026
2027
$1.65
$1.80
$1.97
$2.15
$2.34