⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BLS - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | BLS | Market Cap | 10,615 Cr. | Current Price | 258 ₹ | High / Low | 458 ₹ |
| Stock P/E | 1,415 | Book Value | 1.83 ₹ | Dividend Yield | 0.39 % | ROCE | 19.0 % |
| ROE | 22.0 % | Face Value | 1.00 ₹ | DMA 50 | 301 ₹ | DMA 200 | 339 ₹ |
| Chg in FII Hold | -0.45 % | Chg in DII Hold | 0.02 % | PAT Qtr | 4.90 Cr. | PAT Prev Qtr | 0.75 Cr. |
| RSI | 24.3 | MACD | -15.4 | Volume | 13,16,768 | Avg Vol 1Wk | 21,90,264 |
| Low price | 246 ₹ | High price | 458 ₹ | PEG Ratio | 138 | Debt to equity | 0.09 |
| 52w Index | 5.59 % | Qtr Profit Var | -73.8 % | EPS | 0.18 ₹ | Industry PE | 42.4 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at 4.90 Cr. vs. 0.75 Cr. previous quarter shows improvement, but EPS remains extremely low at 0.18 ₹.
- Margins: ROCE at 19% and ROE at 22% indicate strong efficiency, though earnings base is weak.
- Debt: Debt-to-equity ratio of 0.09 reflects low leverage, enhancing financial stability.
- Cash Flow: Profitability is inconsistent, with sharp quarterly variations impacting cash flow predictability.
💹 Valuation Indicators
- P/E Ratio: 1,415, massively higher than industry average of 42.4, suggesting extreme overvaluation.
- P/B Ratio: Current price (258 ₹) vs. book value (1.83 ₹) shows speculative premium.
- PEG Ratio: 138, indicating growth prospects do not justify valuation multiples.
- Intrinsic Value: Current market price appears highly inflated compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in outsourcing and visa services, with global presence and established contracts.
- Strong ROE and ROCE highlight operational efficiency despite weak EPS.
- Business model relies on service contracts, making earnings sensitive to demand cycles.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Safer accumulation range lies between 200–220 ₹, given speculative valuations.
- Long-Term Holding: Suitable only for high-risk investors; long-term sustainability depends on consistent earnings growth.
✅ Positive
- ROE at 22% and ROCE at 19% show strong efficiency.
- Quarterly PAT improved from 0.75 Cr. to 4.90 Cr., showing operational recovery.
- Low debt-to-equity ratio (0.09) enhances financial resilience.
⚠️ Limitation
- EPS at 0.18 ₹ is extremely weak.
- P/E ratio (1,415) and PEG ratio (138) highlight unsustainable valuations.
- Quarterly profit variation (-73.8%) shows high volatility.
📉 Company Negative News
- FII holding decreased by -0.45%, showing foreign investor caution.
- RSI at 24.3 indicates oversold condition, reflecting weak momentum.
- MACD negative (-15.4), suggesting bearish short-term trend.
📈 Company Positive News
- DII holding increased slightly by 0.02%, showing minor domestic support.
- Quarterly PAT recovery highlights operational improvement.
🏭 Industry
- Outsourcing and visa services sector benefits from global demand but faces cyclical risks.
- Industry P/E at 42.4 highlights moderate valuation compared to BLS’s extreme premium.
🔎 Conclusion
BLS International (BLS) demonstrates strong return ratios (ROE, ROCE) but trades at unsustainable valuations with extremely weak EPS and volatile earnings. The stock appears speculative, with fundamentals not supporting current price levels. Investors should only consider entry closer to 200–220 ₹ and treat it as a high-risk investment. Long-term holding requires caution, as sustainability depends on consistent earnings growth and valuation correction.