🟡 At a Glance
Once a midcap IT darling that fell from grace harder than a crypto influencer post-ED raid, 3i Infotech is now a microcap phoenix trying to rise with “cloud-first, future-ready” buzzwords. But can they turn buzzwords into billing? Or is this just another tech comeback story written in C++ and prayed on Excel?
1. 🚀 Introduction with Hook
You know those guys who peak in college, disappear for a decade, and then show up at a reunion saying “I’m into AI now”?
Yeah, that’s 3i Infotech.
Once a ₹1,000+ Cr revenue player, this IT firm got buried under debt, impairment losses, and restructuring woes.
But now, the company has wiped debt, cut losses, and is flaunting “cloud solutions” like a startup with a Canva-designed pitch deck.
Price down 40% in 1 year.
FII holding down.
Retail holding up.
The real question: is there infotech in 3i Infotech, or just info-doubt?
2. 🧠 WTF Do They Even Do? (Business Model)
Here’s what 3i Infotech says it does. We’ll just pretend to believe it:
🔹 IT Services:
‣ Application development, digital transformation consulting, AI-based automation.
‣ Basically, PowerPoint as a service.
🔹 Transaction Services (BPO & KPO):
‣ Manages back-end ops for BFSI clients.
🔹 Cloud Computing & Infrastructure Management:
‣ Migration, hosting, managed services.
‣ Probably hoping to sell “cloud” to PSU banks still running COBOL.
Recent pivot: Talking about GenAI, RPA, and cyber-resilience to stay cool with CIOs.
3. 📊 Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenue | ₹726 Cr | ₹814 Cr | ₹729 Cr |
| Operating Profit | ₹31 Cr | ₹-63 Cr | ₹-37 Cr |
| Net Profit | ₹25 Cr | ₹-298 Cr | ₹1 Cr |
| EPS | ₹1.49 | ₹-17.63 | ₹0.08 |
| ROE | 8.45% | -ve | 0.2% |
| OPM | 4.3% | -8% | -5% |
📈 Turnaround vibes detected.
But the stock is already trading at a P/E of 16.2 despite years of pain.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹24.2
- Book Value: ₹18.1
- P/E: 16.2
- Market Cap: ₹410 Cr
✅ Cheap on P/B at 1.34x
❌ Expensive for the volatility it comes with
🎯 Fair Value Range (FV):
Let’s go conservative:
- If FY26 EPS = ₹2.5 (assuming growth)
- Assigning 12x–15x P/E ➜ ₹30 – ₹37.5 FV
🧮 EduCalc™ FV Range: ₹30 to ₹37.5
(Assuming actual growth sustains and tax refunds aren’t the only income source)
5. 🔥 What’s Cooking – News, Triggers, Drama
🧾 Tax Refund Season:
They got ₹4.49L back for AY21–22. Also closed FY14 dispute under Vivad Se Vishwas = ₹74L refund.
👨💼 Resignation: Business Head Navneesh Sarin quit in June 2025. Apparently not part of the “AI-first” future.
🧠 AI Buzz: Company now speaks fluent ChatGPT — saying “AI-led workflows” 3 times in every investor call.
📉 Public Shareholding up: 92.96%. Looks like only retail is buying the dream.
6. 🏦 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹170 Cr |
| Reserves | ₹137 Cr |
| Debt | ₹64 Cr |
| Cash Equivalents | ₹~20 Cr |
✅ Debt reduced drastically from ₹900 Cr+ levels (2019) to ₹64 Cr now.
But contingent liabilities = ₹202 Cr = 👻 in the closet.
7. 💵 Cash Flow – Sab Number Game Hai
| Metric | FY25 |
|---|---|
| CFO | ₹44 Cr |
| CFI | ₹1 Cr |
| CFF | ₹-26 Cr |
| Net Cash Flow | ₹19 Cr |
Cash positive. But most years this company’s CFO looks like a Sehwag innings — either 0 or 200.
8. 📐 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROE | 8.45% |
| ROCE | 5.13% |
| OPM | 4.3% |
| Debtor Days | 51 |
| Working Cap | 11 days |
| Interest Cover | ~3x |
✅ Better margins
⚠️ Still volatile.
OPM from -19% to +4% in 1 year = either genius turnaround or Excel wizardry.
9. 🧾 P&L Breakdown – Show Me the Money
| Quarter | Sales ₹ Cr | Net Profit ₹ Cr |
|---|---|---|
| Mar 2024 | ₹197 | ₹-100 |
| Jun 2024 | ₹180 | ₹-9 |
| Sep 2024 | ₹178 | ₹-4 |
| Dec 2024 | ₹181 | ₹17 |
| Mar 2025 | ₹187 | ₹27 |
💡 Q-o-Q improving trend – maybe the ghosts of impairment past are finally exorcised.
10. 🧩 Peer Comparison – Who Else in the Game?
| Company | M.Cap ₹ Cr | P/E | ROE |
|---|---|---|---|
| 3i Infotech | ₹410 | 16.2 | 8.45% |
| TCS | ₹12.3L Cr | 25.4 | 52.4% |
| Infosys | ₹6.7L Cr | 25.5 | 28.8% |
| Persistent | ₹91K Cr | 67.3 | 24.1% |
Let’s be honest — not even in the same WhatsApp group.
3i is microcap IT with a midlife-crisis rebrand. Think of it as Reverse TCS.
11. 📦 Miscellaneous – Shareholding, Promoters, Drama
| Holder Type | Jun 2022 | Mar 2025 |
|---|---|---|
| FIIs | 0.22% | 0.46% |
| DIIs | 10.8% | 6.57% |
| Public | 88.98% | 92.96% |
👎 Institutions are exiting.
👍 Retail is entering (for what reason? Nostalgia?).
Total no. of shareholders: 2.55 lakh
Clearly, every IT WhatsApp group has at least 2 uncles holding 3i Infotech from 2009.
12. ⚖️ EduInvesting Verdict™
3i Infotech is like a washed-up Bollywood actor now claiming to be a “motivational speaker.”
Yes, there’s a turnaround. Yes, debt is gone. Yes, there’s profit.
But can it scale? Can it sustain? Will FY26 profit come from operations or another Vivad refund?
🟢 Good for turnaround junkies.
🔴 Risky for logic investors.
FV Range = ₹30–₹37.5
CMP = ₹24
Return = Choose your fighter: Hope vs History™
✍️ Written by Prashant | 📅 July 8, 2025
Tags: 3i Infotech, IT Stocks, Turnaround Stocks, Penny Stocks, EduInvesting, Vivad Se Vishwas Refund, AI Buzzwords
