BLS - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.3

Let’s explore BLS’s fundamentals, valuation, strategic positioning, and long-term investment outlook

📊 Core Financials & Performance

Profitability

EPS: ₹12.3 — consistent earnings base.

PAT Growth: ₹135 Cr up from ₹121 Cr (+67.3% variation) — solid trend signaling rising margins or revenue gains.

Efficiency

ROE: 34.6%, ROCE: 32.9% — very high, indicating excellent capital utilization and operational leverage.

Debt Profile

Debt-to-equity: 0.21 — relatively low, which adds financial safety and flexibility.

Dividend Yield: 0.27% — modest; reinvestment may be prioritized over payouts.

💸 Valuation Metrics

P/E Ratio: 30.1 — slightly below industry average (36.5), suggesting fair or mild undervaluation.

P/B Ratio: ~8.9 (₹373 ÷ ₹42) — high premium, justified only if growth sustains.

PEG Ratio: 0.46 — excellent; shows undervaluation when adjusted for growth.

Intrinsic Value: Likely slightly higher than current price if earnings and ROE sustain; appears reasonably priced.

🧠 Business Model & Competitive Edge

Industry: Business services and logistics — dependent on process efficiency, scale, and regulatory partnerships.

Strengths

High capital efficiency and scalable operations.

Strong quarterly profit acceleration suggests operational improvements.

Challenges

Decline in FII holding (–1.40%) — potential short-term caution from foreign investors.

Thin dividend and a high P/B may cause hesitation for value-driven investors.

📉 Technical Picture

RSI: 48.7 — neutral zone, room for upward momentum.

MACD: –2.13 — mild bearish crossover; watch for stabilization.

Volume: Slightly below average — consolidation phase underway.

🎯 Suggested Entry Zone

₹355 – ₹370: Attractive range given proximity to 50 DMA and MACD dip.

Ideal for accumulation during technical cooldown with eyes on long-term growth.

📈 Long-Term Holding Guidance

Hold with a 3–5 year horizon

Strong ROE/ROCE indicate potential for compounding returns.

Watch for sustained earnings growth and FII/DII trends.

PEG under 0.5 signals undervaluation relative to growth — a positive for long-term portfolios.

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