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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#388
Positioning
Market Dominance
Services
Computer Software
$785M
Ananta Koti Raju Vegesna
Sify Technologies Limited provides integrated ICT solutions and services in India and internationally. It operates through five segments: Network Centric Services, Data Center Services, Cloud and Managed Services, Technology Integration Services, and Applications Integration Services.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = SIFY ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | 21.3% | 18.6% | 64.5% | 35.7% | 39.5% | 6.5% | 0.0% | 0.0x | $644M | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | 15.4% | 12.6% | 38.7% | 17.1% | 17.0% | -39.7% | 0.0% | 0.0x | $439M | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 28.1% | 16.8% | 48.1% | 23.8% | 18.5% | 78.6% | 0.0% | 37.0x | $220M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | 12.4% | 2.9% | 100.0% | 28.2% | 26.2% | 5.5% | 0.8% | 264.0x | $19.4B | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.6% | 7.8% | 43.8% | 7.4% | 5.9% | 31.2% | 0.0% | 0.0x | $857M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 18.0% | 4.6% | 97.3% | 52.2% | 32.7% | -3.4% | 0.0% | 271.0x | $8.0B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | 9.4% | 4.9% | 55.5% | 8.7% | 7.7% | 13.6% | 1.3% | 7.0x | $78.0B | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | 22.1% | 15.6% | 62.5% | 28.1% | 28.7% | -1.0% | 2.8% | 9.0x | $56.6B | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 21.4% | 8.0% | 100.0% | 10.0% | 7.5% | 14.1% | 0.0% | 27.0x | $1.8B | VS | |
$SIFY SIFY TECHNOLOGIES LTD | 64 | 64 | 69 | 94 | - | 4.2x | 17.1% | 4.2% | 37.5% | 5.7% | 2.2% | 9.2% | 0.0% | 195.0x | $785M | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.3% | 1.9% | 59.6% | 3.5% | 2.3% | 7.8% | 0.0% | 0.3x | - | REF |
SIFY TECHNOLOGIES LTD (SIFY) receives a "Hold" rating with a composite score of 63.5/100. It ranks #388 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Ananta Koti Raju Vegesna
Chief Executive Officer
Labor Force
3,640
64
39
48
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for SIFY
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for SIFY.
View All RatingsMaterial decline in asset turnover efficiency detected
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 64 | 80 | -16DRAG |
| MOMENTUM | 94 | 98 | -4NEUTRAL |
| VALUATION | 69 | 79 | -10DRAG |
| INVESTMENT | 39 | 66 | -27DRAG |
| STABILITY | 48 | 48 | 0NEUTRAL |
| SHORT INT | 27 | 12 | +15ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 5.2% vs WACC 8.5% (spread -3.3%)
GM 38% vs sector 60%, OM 6% vs sector 4%
Capital turnover 1.16x
Rev growth 9%, 8yr history
Interest coverage 0.8x, Net debt/EBITDA 4.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our model assigns SIFY TECHNOLOGIES LTD a Hold rating, with a composite score of 63.5/100 and 3 out of 5 stars. Ranked #388 of 7,333 stocks, SIFY presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 64/100, SIFY shows adequate but unremarkable business quality. The company reports a return on equity of 17.1% (sector avg: 5.3%), gross margins of 37.5% (sector avg: 59.6%), net margins of 2.2% (sector avg: 2.3%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
SIFY's value score of 69/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include an EV/EBITDA of 4.15x, a P/B ratio of 4.81x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
SIFY TECHNOLOGIES LTD's investment score of 39/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 9.2% vs. a sector average of 7.8% and a return on assets of 4.2% (sector: 1.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
SIFY TECHNOLOGIES LTD (SIFY) is exhibiting exceptional momentum with a score of 94/100, placing it among the strongest trending stocks in the market. Revenue growth stands at 9.2% year-over-year, while a beta of 0.92 reflects its sensitivity to broader market moves. Stocks with momentum scores this high have historically outperformed over the following 3–12 months, suggesting SIFY may continue to benefit from strong institutional interest and positive price trends.
With a stability score of 48/100, SIFY exhibits average financial resilience. Key stability metrics include a beta of 0.92 and a debt-to-equity ratio of 195.00x (sector avg: 0.3x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
SIFY TECHNOLOGIES LTD's short interest score of 27/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 195.00x), small-cap liquidity risk. At $785M (small-cap), SIFY carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
SIFY TECHNOLOGIES LTD is a small-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #388 of 7,333 overall (95th percentile). Key comparisons include ROE of 17.1% exceeding the 5.3% sector median and operating margins of 5.7% above the 3.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While SIFY currently exhibits a HOLD profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
Key factor gap
Momentum (94) vs Short Int. (27) — closing this gap could shift the rating.
EV/EBITDA 65% BELOW SECTOR MEDIAN (FAVORABLE)
ROE 223% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 37% BELOW SECTOR MEDIAN
AUDIT DATA AS OF MAR 31, 2025 (Q4 FY2024)
We rate SIFY TECHNOLOGIES LTD (SIFY) as a Hold with a composite score of 63.5/100 at a current price of $16.38. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.
The rating is primarily driven by strength in momentum (94th percentile) and value (69th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (39th percentile) and stability (48th percentile) tempers our overall conviction. We assign a No Moat rating (31/100), High uncertainty, and Poor capital allocation.
Key items to watch: balance sheet deleveraging progress. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
SIFY TECHNOLOGIES LTD holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 63.5/100 places it at rank #388 in our full 7,333-stock universe. At $785M in market capitalization, SIFY TECHNOLOGIES LTD is a small-cap player in the Services space, which limits certain scale advantages but may allow for more agile strategic execution.
The outlook is moderately positive, with revenue expanding at 9% and favorable momentum (94th percentile) reflecting constructive market sentiment. The business shows steady execution, though the growth rate is below the levels typically associated with high-conviction growth stories. Momentum confirmation provides support for the current price level.
The margin cascade tells an important story: gross margins of 38% (-22.1pp vs sector) narrow to operating margins of 6% (+2.2pp vs sector) and net margins of 2.2%, yielding a gross-to-net conversion rate of 6%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.
At a current price of $16.38, SIFY TECHNOLOGIES LTD is trading near fair value based on current fundamentals. Our value factor score of 69/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at EV/EBITDA of 4.2x (discounted to peers), P/B of 4.8x, P/S of 0.6x. We evaluate these multiples in the context of both absolute levels and sector-relative positioning to form our valuation view.
Returns on equity of 17.1% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
A value factor score of 69/100 suggests the market is underpricing these fundamentals, creating a potential margin of safety for new investors.
Positive momentum (94th percentile) indicates institutional accumulation and favorable technical dynamics that tend to persist in the intermediate term.
Elevated leverage (195% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
Thin net margins of 2.2% provide limited cushion against cost pressures, competitive pricing, or macroeconomic headwinds — even small changes in costs could swing the company to a loss.
We assign a High uncertainty rating to SIFY TECHNOLOGIES LTD. Key risk factors include significant leverage (195% debt-to-equity), the combination of leverage (195% D/E) and thin margins (2.2% net) amplifies downside risk. The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: significant leverage (195% debt-to-equity); the combination of leverage (195% D/E) and thin margins (2.2% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 48th percentile and quality factor at the 64th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our high uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate SIFY TECHNOLOGIES LTD's capital allocation as Poor. Key concerns include elevated leverage (195% D/E). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — SIFY TECHNOLOGIES LTD significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, SIFY TECHNOLOGIES LTD receives a Hold rating with a composite score of 63.5/100 (rank #388 of 7,333). Our quantitative framework assigns a No Moat (31/100, trend: stable), High uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 63/100.
Our analysis supports a neutral stance on SIFY TECHNOLOGIES LTD. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign SIFY TECHNOLOGIES LTD a meaningful economic moat, scoring 31/100 on our composite assessment. The ROIC-WACC spread of -3.3% is the primary signal of economic value creation. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, growth durability, reached only 11.4/20.
The strongest moat sources are growth durability (11.4/20) and margin superiority (10.1/20). Rev growth 9%, 8yr history. GM 38% vs sector 60%, OM 6% vs sector 4%. These pillars form the core of SIFY TECHNOLOGIES LTD's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include economic value creation (2.5/20) and financial resilience (3.7/20). ROIC 5.2% vs WACC 8.5% (spread -3.3%). Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect SIFY TECHNOLOGIES LTD's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 38% providing a solid profitability foundation, moderate revenue growth of 9%, returns on equity of 17.1% driving shareholder value creation. The margin cascade from 38% gross to 6% operating to 2.2% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 64th percentile.
The margin profile shows gross margins of 38%, operating margins of 6%, net margins of 2.2%. Return metrics include ROE of 17.1% and ROA of 4.2%. Relative to the Services sector, gross margins are 22.1 percentage points below the sector median of 60%, and ROE of 17.1% compares to a sector median of 5.3%.
The balance sheet reflects high leverage with D/E of 195%, which may limit financial flexibility, revenue growth of 9%. The sector median D/E is 0%, putting SIFY TECHNOLOGIES LTD at higher leverage than the typical peer. Elevated leverage in combination with the current margin profile warrants close monitoring for any deterioration in debt-servicing capacity.
Above 50MA
37.18%
Net New Highs
+51081
Sify Technologies (SIFY) is drawing fresh attention after its data center arm, Sify Infinit Spaces, converted Kotak held compulsorily convertible debentures into equity and reshaped investor agreements ahead of a planned Indian IPO. See our latest analysis for Sify Technologies. At a share price of $15.05, Sify Technologies has seen a 24.79% 90 day share price return and a very large 1 year total shareholder return of 242.82%, suggesting momentum has recently been building. If this data...
Sify Technologies (SIFY) has drawn attention after recent trading moves left the stock with a 1 day return of around an 8% decline and a 7 day return near a 10% decline, despite strong longer term figures. See our latest analysis for Sify Technologies. Despite the recent 1 day and 7 day share price declines, Sify Technologies still sits at a share price of US$13.34, with a 30 day share price return of 6.29% and a very large 1 year total shareholder return, hinting that short term volatility...
Sify Technologies (NasdaqCM:SIFY) is pursuing an IPO for its data center subsidiary to fund expansion and refinance debt. The IPO plan is linked to strong demand in AI focused data center capacity. The company is preparing to inaugurate a new data centre facility in Karnataka as part of its digital infrastructure build out. Sify Technologies, trading at $14.63, has recorded a 1 year share price return of 350.2%, alongside a 23.0% return over the past 30 days and 19.1% year to date. These...
Sify Technologies experienced a stock decline after reporting Q2 financial results, with modest revenue growth of 3% and significant investments in data center infrastructure for AI services.
Sify Technologies has converted all Kotak-held compulsorily convertible debentures in Sify Infinit Spaces into equity, leaving Sify with an 88.45% controlling stake and simplifying the data center unit’s capital structure ahead of a planned SISL IPO on the BSE and NSE. By waiving certain investor rights and formalizing an SISL IPO of up to ₹25.00 billion plus a secondary sale, Sify has clarified ownership, aligned investor exit options, and preserved control over its core data center...