Sify Technologies (SIFY) AI Stock Analysis

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Sify Technologies

(NASDAQ:SIFY)

65Neutral

Sify Technologies' stock is supported by strong technical momentum and robust revenue growth. However, declining profitability and the absence of valuation benchmarks pose challenges. The earnings call provided a balanced outlook, with strategic growth initiatives being offset by current financial losses. Overall, the stock reflects potential amidst operational and financial challenges.

Sify Technologies (SIFY) vs. S&P 500 (SPY)

Market Cap

$320.67M

Dividend YieldN/A

Average Volume (3M)47.66K

Price to Earnings (P/E)―

Beta (1Y)0.43

Revenue Growth9.62%

EPS GrowthN/A

CountryUS

Employees4,319

SectorCommunication Services

Sector Strength84

IndustryTelecommunications Services

Share Statistics

EPS (TTM)-0.02

Shares Outstanding72,221,900

10 Day Avg. Volume40,233

30 Day Avg. Volume47,665

Financial Highlights & Ratios

PEG Ratio<0.01

Price to Book (P/B)0.56

Price to Sales (P/S)0.00

P/FCF Ratio158.38

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Sify Technologies Business Overview & Revenue Model

Company DescriptionSify Technologies (SIFY) is a premier IT service provider based in India, focusing on offering end-to-end solutions in the domains of network services, data center services, cloud and managed services, digital services, and technology integration. As a leader in digital transformation, Sify caters to a diverse client base, including enterprises, public sector organizations, and small and medium businesses across various industries.

How the Company Makes MoneySify Technologies generates revenue through multiple streams that leverage its comprehensive IT service offerings. The primary revenue sources include network services, where Sify provides managed network and security services to businesses; data center services, offering colocation, hosting, and storage solutions; and cloud and managed services, which involve cloud infrastructure and platform services. Additionally, Sify earns from digital services like application modernization, IoT, and analytics, as well as technology integration services, which encompass system integration and IT consulting. The company's earnings are bolstered by strategic partnerships with global technology firms and a robust customer base seeking reliable digital transformation solutions.

Sify Technologies Financial Statement Overview

Summary

Sify Technologies shows strong revenue growth but faces challenges with declining profit margins and profitability metrics. The balance sheet indicates stable leverage, though asset utilization could improve. Cash flow analysis reveals solid operational cash generation, but negative free cash flow suggests the need for better capital management.

Income Statement

Positive

Sify Technologies has shown a consistent increase in total revenue over the years, with a robust revenue growth rate of 6.66% from 2023 to 2024. However, net profit margins have been under pressure, declining to 0.14% in 2024 from 2.02% in 2023. The gross profit margin is healthy at 37.2%, but the decline in both EBIT and EBITDA margins from previous years indicates rising costs or operational inefficiencies.

Balance Sheet

Positive

The company maintains a reasonable debt-to-equity ratio of 1.15, indicating a balanced leverage. However, the equity ratio has seen a slight decrease to 33.85% in 2024. Return on equity has significantly dropped to 0.20%, suggesting reduced profitability relative to equity. The financial position appears stable but could benefit from improved efficiency in asset utilization.

Cash Flow

Neutral

Sify Technologies exhibits a concerning trend in cash flow, with a negative free cash flow in 2024. The operating cash flow to net income ratio is strong at 101.82, indicating good cash generation capability. However, the free cash flow growth rate is negative, signaling potential issues in managing capital expenditures effectively.

TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Breakdown
Income Statement		Total Revenue
36.51B	35.63B	33.40B	27.03B	24.32B	22.95B
	Gross Profit
13.54B	13.26B	12.03B	10.98B	9.62B	8.59B
	EBIT
2.00B	2.17B	2.45B	2.87B	2.39B	1.88B
	EBITDA
6.00B	5.75B	6.50B	6.18B	5.22B	4.25B
	Net Income Common Stockholders
-66.00M	48.94M	674.52M	1.26B	1.53B	705.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.39B	5.39B	3.65B	3.78B	5.10B	2.32B
	Total Assets
70.98B	70.98B	57.40B	47.07B	36.66B	34.26B
	Total Debt
27.59B	27.59B	22.93B	17.46B	11.74B	11.16B
	Net Debt
23.48B	23.48B	19.28B	13.68B	6.63B	8.85B
	Total Liabilities
46.95B	46.95B	40.26B	32.59B	23.50B	22.90B
	Stockholders Equity
24.03B	24.03B	17.15B	14.48B	13.17B	11.35B
Cash Flow		Free Cash Flow
57.76M	-7.39B	-4.87B	-5.13B	3.21B	541.25M
	Operating Cash Flow
57.76M	4.98B	8.34B	2.24B	6.97B	5.04B
	Investing Cash Flow
0.00	-12.26B	-13.59B	-7.59B	-3.62B	-4.33B
	Financing Cash Flow
0.00	7.44B	4.94B	4.17B	618.37M	3.92M

Sify Technologies Technical Analysis

Technical Analysis Sentiment

Positive

Last Price4.44

Price Trends

50DMA

4.40

Positive

100DMA

3.98

Positive

200DMA

3.39

Positive

Market Momentum

MACD

0.04

Negative

RSI

53.32

Neutral

STOCH

58.23

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIFY, the sentiment is Positive. The current price of 4.44 is above the 20-day moving average (MA) of 4.34, above the 50-day MA of 4.40, and above the 200-day MA of 3.39, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 58.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIFY.

Sify Technologies Risk Analysis

Sify Technologies disclosed 78 risk factors in its most recent earnings report. Sify Technologies reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Sify Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDCM	76 Outperform	$198.44M	29.92	9.35%	―	18.23%	81.31%
OOMA	66 Neutral	$369.04M	―	-8.45%	―	8.50%	-743.51%
SIFY	65 Neutral	$320.67M	―	0.20%	―	9.62%	―
Sector *	60 Neutral	$13.88B	7.03	-2.76%	3.71%	2.20%	-43.04%
ATNI	52 Neutral	$225.97M	―	-5.79%	6.46%	-5.46%	-76.33%
SHEN	52 Neutral	$657.74M	―	-4.30%	0.83%	21.68%	-1010.29%
ATEX	42 Neutral	$539.20M	―	-18.92%	―	66.77%	-293.79%

* Communication Services Sector Average

Performance Comparison

SIFY

Sify Technologies

4.44

-3.06

-40.80%

ATNI

ATN International

14.45

-10.85

-42.89%

RDCM

Radcom

13.49

4.13

44.12%

SHEN

Shenandoah Telecommunications Co

11.77

-6.26

-34.72%

ATEX

Anterix

28.06

-4.95

-15.00%

OOMA

Ooma

13.49

5.92

78.20%

Sify Technologies Earnings Call Summary

Earnings Call Date:Apr 18, 2025

(Q3-2025)

% Change Since: 39.62%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong revenue and network infrastructure growth, along with significant data center expansion, indicating positive business developments. However, these were weighed down by losses before and after tax, increased SG&A costs, and a loss in Digital Services due to strategic investments. The sentiment reflects a balanced outlook with substantial growth efforts impacted by current financial losses.

Q3-2025 Updates

Positive Updates

Revenue Growth

Revenue was INR 10,491 million, an increase of 21% over the same quarter last year.

Data Center Expansion

Commissioned 5-megawatt of additional data center capacity during the quarter. Currently, there is a total installed capacity of 120-megawatt, with 110-megawatt contracted.

Network Infrastructure Expansion

Sify provides network infrastructure services via 1,109 fiber nodes, a 14% increase over the same quarter last year. Growth driven by investment in fiber network across 17 cities.

Sustained EBITDA Growth

EBITDA was INR 1,914 million, an increase of 13% over the same quarter last year.

Negative Updates

Loss Before and After Tax

Loss before tax was INR 119 million, and loss after tax was INR 258 million.

Increased SG&A Costs

Significant growth in SG&A costs due to strengthening of leadership team across businesses.

Digital Services Loss

Digital Services posted a loss due to revenue mix change and investment in leadership and upskilling.

Increased Capital Expenditure

Capital expenditure during the quarter was INR 3,343 million.

Company Guidance

During the Sify Technologies earnings call for the third quarter of fiscal year 2024-2025, several key financial metrics and strategic initiatives were discussed. The company's revenue for the quarter was reported at INR 10,491 million, marking a 21% increase from the same quarter last year. EBITDA rose by 13% year-over-year to INR 1,914 million. However, Sify reported a loss before tax of INR 119 million and a loss after tax of INR 258 million. Capital expenditure during the quarter amounted to INR 3,343 million, and the cash balance at the end of the quarter was INR 5,327 million. The revenue distribution for the quarter was 41% from Network Infrastructure Services, 36% from Data Center Colocation Services, and 23% from Digital Services. Notably, Sify commissioned an additional 5-megawatt of data center capacity. The company also highlighted its adoption of IFRS 18 for financial reporting and its investment in AI capabilities, with strategic plans to expand its data center and network infrastructure to support future growth.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.