BSE:539658

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

₹60.4b

Last Updated

2021/06/21 16:13 UTC

Data Sources

Company Financials +

Executive Summary

TeamLease Services Limited provides human resource services to various industries in India. More Details

Rewards

Earnings are forecast to grow 28.92% per year

Earnings grew by 121.6% over the past year

Risk Analysis

No risks detected for 539658 from our risk checks.


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

How has TeamLease Services's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 539658 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 539658's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-2.4%

539658

-2.0%

IN Professional Services

-1.5%

IN Market


1 Year Return

103.4%

539658

99.0%

IN Professional Services

60.8%

IN Market

Return vs Industry: 539658 exceeded the Indian Professional Services industry which returned 98.5% over the past year.

Return vs Market: 539658 exceeded the Indian Market which returned 60.9% over the past year.


Shareholder returns

539658IndustryMarket
7 Day-2.4%-2.0%-1.5%
30 Day7.5%8.9%4.3%
90 Day-0.6%10.6%10.8%
1 Year103.4%103.4%103.2%99.0%63.3%60.8%
3 Year18.9%18.9%37.5%34.7%40.4%33.5%
5 Year289.6%289.6%284.3%284.1%96.5%81.7%

Long-Term Price Volatility Vs. Market

How volatile is TeamLease Services's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is TeamLease Services undervalued compared to its fair value and its price relative to the market?

77.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 539658 (₹3516.4) is trading above our estimate of fair value (₹1891.82)

Significantly Below Fair Value: 539658 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 539658 is poor value based on its PE Ratio (77.6x) compared to the Indian Professional Services industry average (21.8x).

PE vs Market: 539658 is poor value based on its PE Ratio (77.6x) compared to the Indian market (21.6x).


Price to Earnings Growth Ratio

PEG Ratio: 539658 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 539658 is overvalued based on its PB Ratio (9.2x) compared to the IN Professional Services industry average (1.7x).


Future Growth

How is TeamLease Services forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

28.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 539658's forecast earnings growth (28.9% per year) is above the savings rate (6.8%).

Earnings vs Market: 539658's earnings (28.9% per year) are forecast to grow faster than the Indian market (21.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 539658's revenue (16.8% per year) is forecast to grow faster than the Indian market (12.7% per year).

High Growth Revenue: 539658's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 539658's Return on Equity is forecast to be high in 3 years time (21.9%)


Past Performance

How has TeamLease Services performed over the past 5 years?

4.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 539658 has high quality earnings.

Growing Profit Margin: 539658's current net profit margins (1.6%) are higher than last year (0.7%).


Past Earnings Growth Analysis

Earnings Trend: 539658's earnings have grown by 4.5% per year over the past 5 years.

Accelerating Growth: 539658's earnings growth over the past year (121.6%) exceeds its 5-year average (4.5% per year).

Earnings vs Industry: 539658 earnings growth over the past year (121.6%) exceeded the Professional Services industry 35.7%.


Return on Equity

High ROE: 539658's Return on Equity (12%) is considered low.


Financial Health

How is TeamLease Services's financial position?


Financial Position Analysis

Short Term Liabilities: 539658's short term assets (₹8.3B) exceed its short term liabilities (₹5.5B).

Long Term Liabilities: 539658's short term assets (₹8.3B) exceed its long term liabilities (₹1.1B).


Debt to Equity History and Analysis

Debt Level: 539658's debt to equity ratio (0%) is considered satisfactory.

Reducing Debt: 539658's debt to equity ratio has reduced from 8.5% to 0% over the past 5 years.

Debt Coverage: 539658's debt is well covered by operating cash flow (2198024.6%).

Interest Coverage: 539658's interest payments on its debt are well covered by EBIT (9.4x coverage).


Balance Sheet


Dividend

What is TeamLease Services's current dividend yield, its reliability and sustainability?

0.15%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 539658's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 539658's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 539658's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 539658's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 539658's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.7yrs

Average management tenure


CEO

Ashok Kumar Nedurumalli (50 yo)

no data

Tenure

₹11,044,000

Compensation

Mr. Ashok Kumar Reddy Nedurumalli is Co-Founder of TeamLease Services Limited. Mr. Nedurumalli has been the Managing Director of TeamLease Services Limited since September 3, 2015 and serves as its Chief E...


CEO Compensation Analysis

Compensation vs Market: Ashok Kumar's total compensation ($USD148.92K) is below average for companies of similar size in the Indian market ($USD388.19K).

Compensation vs Earnings: Ashok Kumar's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 539658's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: 539658's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

TeamLease Services Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: TeamLease Services Limited
  • Ticker: 539658
  • Exchange: BSE
  • Founded: 2000
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: ₹60.385b
  • Shares outstanding: 17.10m
  • Website: https://www.teamlease.com

Number of Employees


Location

  • TeamLease Services Limited
  • BMTC Commercial Complex
  • 6th Floor
  • Bengaluru
  • Karnataka
  • 560095
  • India

Listings


Biography

TeamLease Services Limited provides human resource services to various industries in India. The company offers temporary staffing, permanent recruitment, payroll process outsourcing, regulatory compliance,...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 16:13
End of Day Share Price2021/06/21 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.