₹22.4
+2.52% today
· 30d -12.23%
as of 2026-09-04
Price · Daily Candles
“3i Infotech: Q4 Profit Plummets 73% as Rights Issue Sets New Course”
3i Infotech faces significant headwinds, with Q4 net profit dropping by 72.97% YoY to ₹7 Cr and annual revenue declining 4.46% to ₹693 Cr. Despite a low TTM PE of 9.53 and a 13% ROCE, the company's negative free cash flow of ₹-45 Cr, representing -12.46% of its market cap, raises sustainability concerns.
BULL CASE
+The company's TTM PE ratio of 9.53 is significantly lower than some sector peers like TCS (16.74) and TechM (26.86), indicating a potentially cheaper valuation.
+The Return on Capital Employed (ROCE) stands at 13.0%, suggesting efficient use of capital.
+Despite recent profit dips, the 3-year Net Profit CAGR is an impressive 194.83%, showing historical profitability ramp-up from a low base.
+The stock is trading 36.61% below its 52-week high of ₹27.45, potentially offering an entry point for value-oriented investors.
BEAR CASE
−Net profit in Q4 2026 fell by 72.97% YoY to ₹7 Cr, reflecting a sharp decline in profitability.
−Quarterly revenue saw a 6.0% YoY decline to ₹176 Cr, while annual revenue for 2026 was down 4.46% to ₹693 Cr.
−The company is free cash flow negative, with a current FCF of -₹45 Cr, equivalent to -12.46% of its market capitalization.
−The 5-year Net Profit CAGR is deeply negative at -38.25%, indicating a sustained period of declining earnings.
⟳ What Changed
₹ Latest Earnings · Q ending 2026-06-30
REVENUE
₹178 Cr
+4.33% YoY
NET PROFIT
₹7 Cr
-13.64% YoY
OPM
6.22%
-3.19pp YoY
EPS
₹0.31
PE 9.53
Intrinsic value · DCF: N/A — Company is currently free-cash-flow negative (-9.7% of mktcap). DCF assumes a going concern generating positive cash flow; a meaningful intrinsic value can only be computed once FCF turns positive. Use the Strategy Fit and ML sections instead.
◇ Sector Position
3i Infotech trades at a TTM PE of 9.53 and a ROCE of 13.0%, significantly lower than sector leaders like TCS (PE: 16.74, ROCE: 60.1%) and Infosys (PE: 16.05, ROCE: 44.44%).
PEERPEROCE %
3IINFOLTD9.5313.0
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ML Forward Growth Predictions 🔒
64
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
POSITIVE
55
Valuation
CHEAP
90
Growth
STEADY
56
Profitability
AVERAGE
45
Technicals
NEUTRAL
60
Risk
LOW
80
Key Stats
TTM PE
9.53
P/B
0.97
52W HIGH
₹27.8
OFF HIGH
-19.42%
MKT CAP
₹463 Cr
◉ Active Signals
MACDBearish-0.4657
RSI(14)Neutral45.35
⧉ Strategy Fit 🔒