Why NIIT Share Price is Rising

Skill development has emerged as a cornerstone of success in today's rapidly evolving business landscape.

The relentless pace of technological advancement and industry disruption has necessitated a workforce equipped with a diverse skill set. Organisations across sectors are prioritising upskilling and reskilling initiatives to stay competitive.

NIIT, a pioneer in the education and training sector, has positioned itself at the forefront of this skills revolution. With a strong foothold in the education and corporate training space, NIIT has been instrumental in developing skilled talent for the industry.

While the company has benefited from the growing demand for skill development, its share price has exhibited a range-bound behavior in 2024, rising by a modest 7.7%.

However, a recent surge of 17.3% in the past month has piqued investor interest.

Let's delve deeper to understand the factors driving this renewed enthusiasm.

#1 Anticipation of Upcoming Quarterly Results

NIIT's share price is on the rise due to anticipation of its upcoming quarterly results.

The company is likely to declare these results on 2 August 2024. Investors are optimistic about the company's financial performance for several reasons.

NIIT's strategic initiatives are contributing to investor optimism. The company is expanding its digital offerings, and forming strategic partnerships. These efforts are expected to drive revenue growth and profitability.

Favorable economic conditions and positive trends in the education and training industry add to the optimistic outlook. As companies and individuals invest more in upskilling and reskilling, NIIT stands to benefit, creating a positive outlook for its financial performance.

Investors expect strong growth from the company. This is driving the current upward trend.

#2 Change in Leadership

NIIT recently appointed Pankaj Jathar as its new Chief Executive Officer (CEO). The appointment is made effective from 1 July 2024.

Pankaj Jathar has taken over from Sapnesh Lalla, who continues as a non-executive director at NIIT Ltd while remaining CEO of NIIT Learning Systems (NIIT MTS).

Jathar brings extensive experience in consumer-focused businesses, spanning e-commerce, startups, and D2C ventures. Under his leadership, NIIT aims to strengthen its position in the market, leveraging new opportunities through GenAI for innovation and growth.

Investors are optimistic about the change in leadership. This confidence is reflected in the rising share price, as the market anticipates significant advancements in NIIT's business.

What Next?

NIIT is focused on accelerating its growth through new products and strategic initiatives. In FY25 the company aims to achieve revenue between Rs 3.8-4 billion (bn). This target is dependent on the recovery of recruitment in Tier 1 Global System Integrators (GSIs).

While the company anticipates that margins will remain thin due to ongoing investments, it sees significant long-term opportunities. It plans to leverage its strong brand and proven skilling methodologies through scalable delivery platforms.

With over 200 corporate partnerships and 30 original equipment manufacturer (OEM) relationships, the company is well-positioned to invest in innovation and growth. These partnerships provide a solid foundation for expanding reach and enhancing their offerings.

NIIT is also exploring both organic and inorganic growth opportunities to achieve its long-term revenue target of Rs 1,200 bn by FY28.

Organic growth will come from expanding its existing product lines and entering new markets. Inorganic growth will involve strategic acquisitions and partnerships that complement its existing strengths and provide new avenues for expansion.

By investing in new technologies and enhancing their delivery platforms, NIIT aims to stay ahead of the competition and meet the evolving needs of their customers.

In summary, NIIT's future growth strategies focus on leveraging a strong brand name, investing in innovation, building partnerships, and exploring new growth opportunities.

How NIIT Share Price has Performed Recently

In the past five days, NIIT share price has rallied 7.3%. In the last month, it is up 17.3%.

In 2024, so far its share price is up 7.7% and it has rallied 54.1% in the last one year.

The stock touched its 52-week high of Rs 154.6 on 14 September 2023 and a 52-week low of Rs 77.1 on 14 August 2023.

About NIIT

NIIT is a leading global talent development organisation that is engaged in building skilled human capital and enhancing workforce talent worldwide.

The company, was set up in 1981 to help the nascent IT industry overcome its human resource challenges. Today it ranks among the world's leading training companies owing to its vast, and comprehensive array of talent development programs.

With a footprint across 30 nations, NIIT offers training and development solutions to individuals, enterprises, and institutions.

NIIT's corporate learning business has been transferred to NIIT MTS via a composite scheme of arrangement in May 2023.

The reorganisation helps NIIT create a sharper focus on its skills and careers business. This business delivers a diverse range of learning and talent development programs.

These programs are designed for early career and working professionals. They aim to accelerate career success across futuristic domains. These domains include technology and banking.

For more details about the company, you can have a look at NIIT factsheet and quarterly results on our website.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...