Sify Technologies Ltd (NASDAQ: SIFY)

Sector: Communication Services Industry: Telecom Services CIK: 0001094324
Market Cap 1.00 Bn
P/B 4.55
P/E -59.32
P/S 2.14
ROIC (Qtr) 452.97
Div Yield % 0.00
Rev 1y % (Qtr) -3.40
Total Debt (Qtr) 432.83 Mn
Debt/Equity (Qtr) 1.97
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About

Sify Technologies Ltd, often recognized by its stock symbol SIFY, is a prominent player in the Indian information and communication technology (ICT) solutions and services industry. The company's operations span across the Indian and global markets, offering a broad spectrum of services and solutions to enterprise customers. Sify's primary business activities encompass Network Connectivity Services, Data Center Services, and Digital Services. The company's network extends across over 1600 cities and towns in India, supported by more than 3400 points...

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Investment thesis

Bull case

  • Operating cash flow of 151.82M provides strong 28582.56x coverage of stock compensation 5311.73, indicating sustainable incentive practices.
  • Strong operating cash flow of 151.82M provides 1.75x coverage of SG&A expenses 86.77M, showing efficient operational cost management.
  • Tangible assets of 928.57M provide exceptional 10.69x coverage of deferred revenue 86.89M, showing strong service capability backing.
  • Tangible assets of 928.57M provide robust 20.97x coverage of other current liabilities 44.27M, indicating strong asset backing.
  • Operating cash flow of 151.82M provides strong 3.41x coverage of inventory 44.52M, indicating efficient inventory management.

Bear case

  • Operating cash flow of 151.82M barely covers its investment activities of (140.45M), with a coverage ratio of -1.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 151.82M provides thin coverage of dividend payments of (172225.97) with a -881.53 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • High receivables of 183.32M relative to inventory of 44.52M (4.12 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 11.13M provides weak coverage of capital expenditures of 140.70M, with a 0.08 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of 25.73M show weak coverage of depreciation charges of 73.02M, with a 0.35 ratio indicating high capital intensity and potential reinvestment needs.

Geographical areas [axis] Breakdown of Revenue (2025)

Peer comparison

Companies in the Telecom Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TMUS T-Mobile US, Inc. 247.58 Bn 22.52 2.80 118.74 Bn
2 T At&T Inc. 210.50 Bn 12.86 1.15 155.04 Bn
3 VZ Verizon Communications Inc 202.20 Bn 11.00 1.54 181.64 Bn
4 CMCSA Comcast Corp 180.83 Bn 58.43 5.08 98.94 Bn
5 VOD Vodafone Group Public Ltd Co 44.88 Bn 3.20 0.62 60.54 Bn
6 CHT Chunghwa Telecom Co Ltd 33.41 Bn 26.87 4.32 1.20 Bn
7 SATS EchoStar CORP 32.60 Bn -2.52 2.15 30.58 Bn
8 CHTR Charter Communications, Inc. /Mo/ 32.03 Bn 6.42 0.58 96.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.03 0.87
EV to Cash from Ops. EV/CFO 0.18 7.73
EV to Debt EV to Debt 0.06 40.31
EV to EBIT EV/EBIT 1.07 2.24
EV to EBITDA EV/EBITDA 0.28 2.53
EV to Free Cash Flow [EV/FCF] EV/FCF 2.47 33.34
EV to Market Cap EV to Market Cap 0.03 1.71
EV to Revenue EV/Rev 0.06 5.12
Price to Book Value [P/B] P/B 4.55 2.16
Price to Earnings [P/E] P/E -59.32 76.35
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio -1.10 -0.17
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.05
Dividend per Basic Share Div per Share (Qtr) 0.00 0.79
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 8.04
Interest Coverage Int. cover (Qtr) 0.71 -2.53
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 5.99 19.27
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -48.38 61.85
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -2.07
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 153.88 373.65
EBITDA Growth (1y) % EBITDA Growth (1y) % 6.39 192.47
EBIT Growth (1y) % EBIT 1y % (Qtr) -22.28 814.56
EBT Growth (1y) % EBT 1y % (Qtr) -344.56 -29.03
EPS Growth (1y) % EPS 1y % (Qtr) -520.19 141.81
FCF Growth (1y) % FCF Growth (1y) % 115.28 78.17
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 6.30 -10.71
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.60
Cash Payout Ratio Cash Payout Ratio 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.14 0.68
Current Ratio Curr Ratio (Qtr) 0.88 1.56
Debt to Equity Ratio Debt/Equity (Qtr) 1.97 -0.46
Interest Cover Ratio Int Coverage (Qtr) 0.71 -2.53
Times Interest Earned Times Interest Earned (Qtr) 0.71 -2.53
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 21.20 46.49
EBIT Margin % EBIT Margin % (Qtr) 490.17 -51.60
EBT Margin % EBT Margin % (Qtr) -2.29 27.73
Gross Margin % Gross Margin % (Qtr) 38.60 55.49
Net Profit Margin % Net Margin % (Qtr) -3.60 26.33