BLS - Investment Analysis

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

📊 Investment Rating: 4.4

BLS International Services Ltd. shows strong fundamentals and growth potential, making it a promising long-term candidate. Here's a full breakdown

🧠 Fundamental Analysis

Valuation

Stock P/E (30.1) vs Industry P/E (36.5) → Slightly undervalued

PEG Ratio (0.46) → Excellent growth-adjusted valuation

Price to Book (≈8.9) → High, but justified by strong ROE

Profitability

ROE (34.6%) and ROCE (32.9%) → Outstanding capital efficiency

EPS (₹12.3) → Solid earnings base

Qtr Profit Var (+67.3%) → Strong YoY growth momentum

Dividend Yield (0.27%) → Low, but consistent

Debt to Equity (0.21) → Healthy balance sheet

📉 Technical & Trend Indicators

Current Price (₹373) is near DMA 50 (₹376) and DMA 200 (₹383) → Neutral trend

RSI (48.7) → Mid-range, no strong signal

MACD (-2.13) → Mild bearish momentum

Volume slightly below average → Watch for breakout confirmation

🏁 Ideal Entry Price Zone

Based on valuation and technicals

₹355–₹370 is a favorable accumulation zone

This aligns with support near 52-week low and PEG valuation comfort

🧳 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: Minimum 5–7 years to capture compounding and global expansion

Exit Strategy

Partial exit if price crosses ₹500–₹525 and valuation becomes stretched

Hold if ROE/ROCE sustain and PEG remains below 1

Reassess if price breaks below ₹340 or if earnings growth slows

🔮 Long-Term Outlook

BLS has delivered 46% profit growth YoY and 29% sales CAGR over 5 years

Analysts forecast targets of ₹575–₹625 by 2025, and ₹950+ by 2027

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Expansion into biometric services and e-governance is expected to drive future margins

🧪 Final Verdict

BLS is a high-quality mid-cap growth stock with stellar ROE, strong PEG, and global scalability. It’s a solid long-term compounder if accumulated near support zones and held with conviction.

Want to compare it with peers like IRCTC or CMS Info Systems for a broader services sector view?

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stockpricearchive.com

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tradewatch360.com

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