BSE:532400

Stock Analysis Report

Executive Summary

Birlasoft Limited provides enterprise digital IT services in the United States, the United Kingdom and rest of Europe, and internationally.


Snowflake Analysis

Flawless balance sheet average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 532400's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.0%

532400

-2.8%

IN Software

-0.7%

IN Market


1 Year Return

-8.2%

532400

-16.3%

IN Software

10.0%

IN Market

Return vs Industry: 532400 exceeded the Indian Software industry which returned -16.3% over the past year.

Return vs Market: 532400 underperformed the Indian Market which returned 10% over the past year.


Shareholder returns

532400IndustryMarket
7 Day4.0%-2.8%-0.7%
30 Day33.7%-3.9%-0.3%
90 Day37.9%1.2%3.2%
1 Year-4.7%-8.2%-15.5%-16.3%12.0%10.0%
3 Year41.3%-28.3%-14.9%-21.8%23.9%17.1%
5 Year-6.9%-53.9%0.4%-14.0%38.3%25.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 532400 (₹98.95) is trading below our estimate of fair value (₹116.19)

Significantly Below Fair Value: 532400 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 532400 is poor value based on its PE Ratio (12.3x) compared to the Software industry average (12.2x).

PE vs Market: 532400 is good value based on its PE Ratio (12.3x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 532400 is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: 532400 is overvalued based on its PB Ratio (1.6x) compared to the IN Software industry average (1x).


Next Steps

Future Growth

How is Birlasoft forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532400's forecast earnings growth (18.3% per year) is above the savings rate (6.5%).

Earnings vs Market: 532400's earnings (18.3% per year) are forecast to grow slower than the Indian market (19.8% per year).

High Growth Earnings: 532400's earnings are forecast to grow, but not significantly.

Revenue vs Market: 532400's revenue (15.2% per year) is forecast to grow faster than the Indian market (9% per year).

High Growth Revenue: 532400's revenue (15.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532400's Return on Equity is forecast to be low in 3 years time (14.7%).


Next Steps

Past Performance

How has Birlasoft performed over the past 5 years?

-2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532400 has high quality earnings.

Growing Profit Margin: 532400's current net profit margins (7%) are lower than last year (7.9%).


Past Earnings Growth Analysis

Earnings Trend: 532400's earnings have declined by -2.1% per year over the past 5 years.

Accelerating Growth: 532400's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 532400 had negative earnings growth (-24.8%) over the past year, making it difficult to compare to the Software industry average (-5.4%).


Return on Equity

High ROE: 532400's Return on Equity (12.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Birlasoft's financial position?


Financial Position Analysis

Short Term Liabilities: 532400's short term assets (₹15.6B) exceed its short term liabilities (₹5.9B).

Long Term Liabilities: 532400's short term assets (₹15.6B) exceed its long term liabilities (₹2.0B).


Debt to Equity History and Analysis

Debt Level: 532400 is debt free.

Reducing Debt: 532400 has no debt compared to 5 years ago when its debt to equity ratio was 40%.

Debt Coverage: 532400 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 532400 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 532400 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 532400's debt is covered by short term assets.


Next Steps

Dividend

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

2.03%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%0.6%markettop25%2.6%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532400's dividend (2.03%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532400's dividend (2.03%) is low compared to the top 25% of dividend payers in the Indian market (2.56%).


Stability and Growth of Payments

Stable Dividend: 532400's dividends per share have been stable in the past 10 years.

Growing Dividend: 532400's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (24.9%), 532400's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

DK Kapoor (52yo)

0.7yrs

Tenure

0

Mr. Dharmender Kapoor, also known as DK, serves as Managing Director, Chief Executive Officer and Director of Birlasoft Limited since June 1, 2019 and served as its Chief Operating Officer until June 1, 20 ...


Leadership Team

NamePositionTenureCompensationOwnership
Dharmender Kapoor
MD, CEO & Director0.7yrsno datano data
Rajeev Gupta
Chief Financial Officer1.1yrsno datano data
Anup Sable
Executive VP & CTO4yrsno datano data
Samit Deb
Chief People Officer0yrsno datano data
Sourabh Jha
Head of Sales0yrsno data0.012% 3.2m
Rajesh Janwadkar
Senior VP & Global Head of Product Engineering Services Strategic Business Unit4yrsno datano data
Rohit Natekar
Head of Sales0yrsno data0.032% 8.6m
Mandar Marulkar
Chief Digital Officer & VP0yrsno datano data
Nataraj Narayan
Senior VP & Global Head of IMS Strategic Business Unit0yrsno datano data
Vikas Jadhav
Head of Investor Relations1.2yrsno datano data

1.2yrs

Average Tenure

47.5yo

Average Age

Experienced Management: 532400's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Dharmender Kapoor
MD, CEO & Director0.7yrsno datano data
Chinmay Pandit
Board Member and President of Impact Automotive Solutions Ltd0yrsno data0.014% 3.8m
Rafi Maor
Director0.3yrsno datano data
Anant Talaulicar
Independent Director2.3yrs₹2.36mno data
Ashok Barat
Additional Independent Director1.1yrs₹900.00kno data
Amita Birla
Chairman of the Board1.1yrs₹900.00kno data
Nandita Gurjar
Additional Independent Director1.1yrs₹1.00mno data
Prasad Thrikutam
Additional Independent Director1.1yrs₹700.00kno data
Alka Bharucha
Additional & Independent Director1.8yrs₹1.40mno data
Chandrakant Birla
Additional Non-Executive Director1.1yrs₹800.00kno data

1.1yrs

Average Tenure

62yo

Average Age

Experienced Board: 532400's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 42.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Birlasoft Limited
  • Ticker: 532400
  • Exchange: BSE
  • Founded: 1990
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: ₹26.727b
  • Shares outstanding: 271.07m
  • Website: https://www.birlasoft.com

Number of Employees


Location

  • Birlasoft Limited
  • Rajiv Gandhi Infotech Park
  • Plot No. 35 & 36
  • Pune
  • Maharashtra
  • 411057
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532400BSE (Mumbai Stock Exchange)YesEquity SharesININRNov 1999
BSOFTNSEI (National Stock Exchange of India)YesEquity SharesININRNov 1999

Biography

Birlasoft Limited provides enterprise digital IT services in the United States, the United Kingdom and rest of Europe, and internationally. The company combines domain, enterprise, and digital technologies to reimagine business processes for its customers and their ecosystem. It offers digital transformation services, including data analytics, connected products, intelligent automation, cloud, transformation, and blockchain services; enterprise technologies and services in the areas of Oracle and JD Edwards, SAP, Infor, Microsoft, customer relationship management, manufacturing execution systems, product lifecycle management, and supply chain management; and application and infrastructure services comprising IT transformation, applications management, testing, and infrastructure and cloud technology. It serves automotive, banking, high tech, manufacturing, insurance, media and entertainment, energy and resources, life sciences and healthcare, and utility industries, as well as capital markets. Birlasoft Limited was founded in 1990 and is based in Pune, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 12:56
End of Day Share Price2020/02/20 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.