⚠ 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.
BSOFT - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | BSOFT | Market Cap | 10,191 Cr. | Current Price | 364 ₹ | High / Low | 474 ₹ |
| Stock P/E | 32.5 | Book Value | 60.2 ₹ | Dividend Yield | 1.78 % | ROCE | 23.5 % |
| ROE | 18.6 % | Face Value | 2.00 ₹ | DMA 50 | 395 ₹ | DMA 200 | 413 ₹ |
| Chg in FII Hold | -0.34 % | Chg in DII Hold | 2.19 % | PAT Qtr | 96.0 Cr. | PAT Prev Qtr | 101 Cr. |
| RSI | 41.6 | MACD | -12.5 | Volume | 17,61,642 | Avg Vol 1Wk | 13,79,934 |
| Low price | 320 ₹ | High price | 474 ₹ | PEG Ratio | -105 | Debt to equity | 0.07 |
| 52w Index | 28.5 % | Qtr Profit Var | 65.8 % | EPS | 10.2 ₹ | Industry PE | 20.9 |
📊 Financials
- Revenue Growth: Stable, but PAT declined slightly from 101 Cr. to 96 Cr. QoQ
- Profit Margins: EPS at 10.2 ₹, consistent
- Debt Ratios: Debt-to-Equity 0.07, very low leverage
- Cash Flows: Healthy, supported by IT services demand
- Return Metrics: ROE 18.6%, ROCE 23.5% — strong efficiency
💹 Valuation
- P/E Ratio: 32.5 (premium vs Industry PE 20.9)
- P/B Ratio: ~6.0 (high, reflects market optimism)
- PEG Ratio: -105 (negative, indicates weak growth outlook)
- Intrinsic Value: Current price (364 ₹) below DMA 50 (395 ₹) & DMA 200 (413 ₹), showing technical weakness
🏢 Business Model & Competitive Advantage
- IT services and consulting company with global delivery capabilities
- Strong presence in digital transformation and enterprise solutions
- Competitive advantage in niche IT segments and client relationships
- Low debt ensures financial resilience
📈 Entry Zone Recommendation
- Entry Zone: 350–370 ₹ (near support levels, RSI at 41.6)
- Long-Term Holding: Attractive for investors seeking IT sector exposure, but growth outlook is muted
✅ Positive
- Strong ROCE (23.5%) and ROE (18.6%)
- Low debt-to-equity ratio (0.07)
- DII holding increased (+2.19%)
- Dividend yield at 1.78% adds investor appeal
⚠️ Limitation
- High P/E ratio compared to industry
- Negative PEG ratio (-105), weak growth outlook
- Stock trading below DMA 50 & 200, showing weakness
📉 Company Negative News
- FII holding decreased (-0.34%)
- Quarterly PAT declined slightly
📈 Company Positive News
- DII holding increased (+2.19%)
- Strong return ratios (ROE & ROCE)
- Dividend yield supports investor confidence
🏭 Industry
- IT services industry remains strong with digital transformation demand
- Industry PE at 20.9, BSOFT trades at a premium
🔎 Conclusion
BSOFT is a solid IT services company with strong return ratios and low debt. However, valuations are stretched with a P/E of 32.5 and negative PEG ratio, indicating muted growth prospects. Entry around 350–370 ₹ is favorable for long-term investors seeking IT exposure, but caution is advised due to weak technicals and limited earnings growth momentum.