Cigniti Technologies Limited (CIGNITITEC) AI Stock Analysis

• Market Cap: ₹45.85B
• Dividend Yield: N/A
• Average Volume (3M): 1.48K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.13
• Revenue Growth: 13.58%
• EPS Growth: 104.94%
• Country: IN
• Employees: 3,891
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 30.04
• Shares Outstanding: 27,546,959
• 10 Day Avg. Volume: 1,209
• 30 Day Avg. Volume: 1,477
• PEG Ratio: 0.97
• Price to Book (P/B): 4.00
• Price to Sales (P/S): 1.91
• P/FCF Ratio: 26.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 7,611.06
• Revenue Forecast (FY): ₹1.93T

• Rating: 80 Outperform
• Price Target: ₹2,056.00 ▲(26.97% Upside)

Cigniti Technologies' strong financial performance is the most significant factor, supported by robust revenue growth, effective profitability management, and impressive cash flow generation. Technical analysis indicates a bullish trend, though caution is advised as momentum indicators approach overbought levels. The valuation is reasonable, though the lack of a dividend yield may deter some investors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust business expansion and effective market penetration, supporting long-term sustainability and competitiveness.

Cash Flow Generation

Strong free cash flow generation enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Balance Sheet Health

A low debt-to-equity ratio indicates conservative leverage, providing stability and reducing financial risk, which is crucial for long-term growth.

Negative Factors

Net Income Pressure

Decreasing net income could signal challenges in maintaining profitability, potentially impacting future earnings and investor confidence.

Profitability Concerns

Fluctuations in net income suggest potential issues in cost management or revenue realization, which could affect long-term profitability.

Debt Monitoring

While current leverage is low, vigilance is needed to prevent debt levels from rising, which could strain financial resources and flexibility.

Cigniti Technologies Limited Business Overview & Revenue Model

Company Description

Cigniti Technologies Limited provides software testing services worldwide. The company offers digital assurance services, such as artificial intelligence, Internet of Things, blockchain, big data and analytics, and mobile testing services, as well as digital assurance and testing, robotic process automation, cloud migration assurance, and 5G assurance services. It also provides quality engineering services, including DevOps testing, compatibility testing, functional testing, performance testing, security testing, regression testing, test automation, and crowdsourced testing. In addition, the company offers enterprise application assurance services comprising medical device testing, ERP testing, and salesforce testing; and test management services, such as agile testing, service virtualization, and test data management; and test advisory and transformation services. It serves the airlines, banking, communications, energy and utilities, financial services, healthcare and life sciences, insurance, logistics, manufacturing, media and entertainment, retail and ecommerce, and travel and hospitality industries. The company was formerly known as Chakkilam Infotech Limited. Cigniti Technologies Limited was incorporated in 1998 and is headquartered in Hyderabad, India.

How the Company Makes Money

Cigniti Technologies Limited generates revenue primarily through its software testing and quality engineering services. The company's revenue model is based on service contracts with clients across various industries, including banking, healthcare, retail, and telecommunications. Key revenue streams include consultancy fees for quality assurance and testing services, subscription-based models for ongoing testing support, and project-based fees for specific testing assignments. Significant partnerships with technology providers and client agreements contribute to its earnings by expanding its service offerings and providing access to a broader client base. The company's emphasis on leveraging emerging technologies like AI and automation also plays a crucial role in enhancing service efficiency and, consequently, its profitability.

Cigniti Technologies Limited Financial Statement Overview

Summary

Cigniti Technologies exhibits strong financial health with robust revenue growth, effective profitability management, and impressive cash flow generation. The balance sheet is solid with low leverage and increasing equity. However, recent net income trends require monitoring.

Income Statement

Cigniti Technologies has demonstrated strong revenue growth with a consistent upward trajectory in total revenue from 2020 to 2025, indicating robust business expansion. The company's gross profit margin and net profit margin have also shown an improvement, reflecting effective cost management and profitability. The EBIT and EBITDA margins underscore solid operational performance. However, attention should be given to the decrease in net income in the latest year, which might indicate some pressure on bottom-line profitability.

Balance Sheet

The company's balance sheet highlights a healthy financial position with a low debt-to-equity ratio, suggesting conservative leverage and financial stability. The increase in stockholders' equity over the years indicates strong shareholder value growth. Additionally, the equity ratio demonstrates effective asset management. Despite these strengths, monitoring the total debt levels is crucial to ensure continued financial health.

Cash Flow

Cigniti Technologies' cash flow statements reveal a strong free cash flow generation capability, with a significant increase in free cash flow over the years. The operating cash flow to net income ratio is healthy, indicating efficient cash conversion from earnings. The company's ability to maintain positive free cash flow despite varying capital expenditures and financing activities further underscores its strong cash management practices.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	20.80B	20.14B	18.15B	16.48B	12.42B	8.97B
Gross Profit	7.92B	7.96B	6.91B	6.83B	4.94B	3.70B
EBITDA	3.64B	2.89B	2.55B	2.52B	1.43B	1.59B
Net Income	2.56B	2.00B	1.66B	1.68B	917.44M	1.05B
Balance Sheet
Total Assets	0.00	12.39B	10.06B	8.46B	6.98B	5.32B
Cash, Cash Equivalents and Short-Term Investments	4.00B	4.00B	4.08B	2.82B	2.36B	2.08B
Total Debt	0.00	279.38M	572.35M	557.66M	800.40M	456.76M
Total Liabilities	-9.63B	2.76B	2.68B	2.57B	2.38B	1.60B
Stockholders Equity	9.63B	9.63B	7.38B	5.89B	4.60B	3.72B
Cash Flow
Free Cash Flow	0.00	1.46B	1.24B	1.44B	175.96M	1.42B
Operating Cash Flow	0.00	1.60B	1.29B	1.57B	382.14M	1.45B
Investing Cash Flow	0.00	-176.07M	-381.20M	-564.62M	-523.61M	-438.70M
Financing Cash Flow	0.00	-175.82M	-395.05M	-687.61M	-196.60M	-143.36M

Cigniti Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1619.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CIGNITITEC, the sentiment is Negative. The current price of 1619.25 is below the 20-day moving average (MA) of 1686.98, below the 50-day MA of 1748.34, and below the 200-day MA of 1626.42, indicating a neutral trend. The MACD of -29.85 indicates Negative momentum. The RSI at 44.44 is Neutral, neither overbought nor oversold. The STOCH value of 82.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CIGNITITEC.

Cigniti Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIGNITITEC	80 Outperform	₹45.85B	15.99	―	―	13.58%	104.94%
RSYSTEMS	73 Outperform	₹45.70B	24.20	―	3.06%	8.36%	36.68%
SAKSOFT	72 Outperform	₹24.38B	18.68	―	0.42%	21.17%	27.66%
DATAMATICS	72 Outperform	₹41.98B	18.03	―	0.58%	18.81%	29.35%
SASKEN	64 Neutral	₹20.64B	52.48	―	1.83%	77.13%	-39.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
RPSGVENT	54 Neutral	₹23.37B	-55.61	―	―	23.60%	72.41%

Cigniti Technologies Limited Corporate Events

Cigniti Technologies Advances Amalgamation with Coforge

Cigniti Technologies Limited announced the successful completion of a court-convened meeting with its unsecured creditors regarding the proposed Scheme of Amalgamation with Coforge Limited. The meeting, held through video conferencing as directed by the National Company Law Tribunal, saw the participation of creditors who engaged in an e-voting process. The scrutinizer’s report, detailing the voting results, marks a significant step in the amalgamation process, potentially impacting the company’s operational structure and stakeholder interests.

Cigniti Technologies Announces Amalgamation Proceedings with Coforge

Cigniti Technologies Limited has announced the proceedings of the Court Convened General Meetings held on December 06, 2025, regarding the proposed Scheme of Amalgamation with Coforge Limited. This amalgamation is significant for the company’s operations as it involves the integration of shareholders and creditors under the Companies Act, 2013, potentially impacting the company’s market positioning and stakeholder interests.

Cigniti Technologies Announces Creditors Meeting for Amalgamation Plan

Cigniti Technologies Limited has announced a court-convened meeting of its unsecured creditors scheduled for December 6, 2025, to discuss the proposed Scheme of Amalgamation with Coforge Limited. This meeting, directed by the National Company Law Tribunal, Chandigarh Bench, aims to consider and potentially approve the merger plan, which could significantly impact the company’s operational structure and stakeholder interests.

Cigniti Technologies Announces General Meeting for Amalgamation with Coforge

Cigniti Technologies Limited has announced a Court Convened General Meeting scheduled for December 6, 2025, to discuss the proposed Scheme of Amalgamation with Coforge Limited. This meeting, directed by the National Company Law Tribunal, will be held virtually, allowing shareholders to consider and approve the merger, which could significantly impact the company’s operational structure and market positioning.

Cigniti Technologies Publishes Unaudited Financial Results for September 2025

Cigniti Technologies Limited announced the publication of its unaudited financial results for the quarter and half-year ending September 30, 2025, in major newspapers. This disclosure is part of their compliance with SEBI regulations, reflecting the company’s commitment to transparency and providing stakeholders with timely financial information.

Cigniti Technologies Confirms SEBI Compliance for Q3 2025

Cigniti Technologies Limited has announced the receipt of a certificate from Aarthi Consultants Private Limited for compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ending September 30, 2025. This compliance ensures that the company’s securities are properly dematerialized and listed on the stock exchanges, reflecting Cigniti’s commitment to maintaining regulatory standards and transparency in its operations.

Cigniti Technologies Opens Special Window for Share Transfer Requests

Cigniti Technologies Limited has announced the opening of a special window for the re-lodgement of transfer requests for physical shares. This initiative, published in prominent newspapers, aims to streamline the process for shareholders, potentially enhancing shareholder relations and operational efficiency.