NINtec Systems (NSE:NINSYS) Ticks All The Boxes When It Comes To Earnings Growth
The excitement of investing in a company that can reverse its fortunes is a big draw for some speculators, so even companies that have no revenue, no profit, and a record of falling short, can manage to find investors. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.
If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in NINtec Systems (NSE:NINSYS). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it.
How Fast Is NINtec Systems Growing Its Earnings Per Share?
Over the last three years, NINtec Systems has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. As a result, we'll zoom in on growth over the last year, instead. It's good to see that NINtec Systems' EPS has grown from ₹15.20 to ₹18.06 over twelve months. This amounts to a 19% gain; a figure that shareholders will be pleased to see.
One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. The music to the ears of NINtec Systems shareholders is that EBIT margins have grown from 22% to 25% in the last 12 months and revenues are on an upwards trend as well. Both of which are great metrics to check off for potential growth.
You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.
View our latest analysis for NINtec Systems
Since NINtec Systems is no giant, with a market capitalisation of ₹15b, you should definitely check its cash and debt before getting too excited about its prospects.
Are NINtec Systems Insiders Aligned With All Shareholders?
It's said that there's no smoke without fire. For investors, insider buying is often the smoke that indicates which stocks could set the market alight. Because often, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.
We note that NINtec Systems insiders spent ₹9.2m on stock, over the last year; in contrast, we didn't see any selling. That's nice to see, because it suggests insiders are optimistic. We also note that it was the MD & Director, Niraj Gemawat, who made the biggest single acquisition, paying ₹5.3m for shares at about ₹828 each.
These recent buys aren't the only encouraging sign for shareholders, as a look at the shareholder registry for NINtec Systems will reveal that insiders own a significant piece of the pie. In fact, they own 51% of the company, so they will share in the same delights and challenges experienced by the ordinary shareholders. This makes it apparent they will be incentivised to plan for the long term - a positive for shareholders with a sit and hold strategy. To give you an idea, the value of insiders' holdings in the business are valued at ₹7.6b at the current share price. That's nothing to sneeze at!
Shareholders have more to smile about than just insiders adding more shares to their already sizeable holdings. The cherry on top is that the CEO, Niraj Gemawat is paid comparatively modestly to CEOs at similar sized companies. For companies with market capitalisations between ₹9.6b and ₹38b, like NINtec Systems, the median CEO pay is around ₹18m.
The NINtec Systems CEO received total compensation of only ₹1.2m in the year to March 2026. This could be considered a token amount, and indicates that the company does not need to use payment to motivate the CEO - that is often a good sign. CEO remuneration levels are not the most important metric for investors, but when the pay is modest, that does support enhanced alignment between the CEO and the ordinary shareholders. It can also be a sign of a culture of integrity, in a broader sense.
Should You Add NINtec Systems To Your Watchlist?
One important encouraging feature of NINtec Systems is that it is growing profits. Better yet, insiders are significant shareholders, and have been buying more shares. That makes the company a prime candidate for your watchlist - and arguably a research priority. Now, you could try to make up your mind on NINtec Systems by focusing on just these factors, or you could also consider how its price-to-earnings ratio compares to other companies in its industry.
The good news is that NINtec Systems is not the only stock with insider buying. Here's a list of small cap, undervalued companies in IN with insider buying in the last three months!
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.