BSE:540073

Stock Analysis Report

BLS International Services

Executive Summary

BLS International Services Limited provides outsourcing and administrative services for governments and their diplomatic missions worldwide.

Rewards

PE ratio (11.8x) is below the Indian market (13.8x)

Risk Analysis

Unstable dividend track record

Profit margins (7.1%) are lower than last year (13.5%)

Does not have a meaningful market cap (₹7B)



Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 540073 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.4%

540073

-0.2%

IN IT

-0.3%

IN Market


1 Year Return

-40.2%

540073

10.5%

IN IT

9.9%

IN Market

Return vs Industry: 540073 underperformed the Indian IT industry which returned 13.6% over the past year.

Return vs Market: 540073 underperformed the Indian Market which returned 6.7% over the past year.


Shareholder returns

540073IndustryMarket
7 Day-3.4%-0.2%-0.3%
30 Day4.0%2.3%2.6%
90 Day-6.3%7.2%5.9%
1 Year-39.5%-40.2%13.5%10.5%11.9%9.9%
3 Year-61.9%-62.6%77.8%67.3%30.2%23.3%
5 Yearn/a66.9%51.5%37.1%24.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

11.53x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 540073 (₹70.3) is trading above our estimate of fair value (₹12.49)

Significantly Below Fair Value: 540073 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 540073 is good value based on its PE Ratio (11.8x) compared to the IT industry average (13x).

PE vs Market: 540073 is good value based on its PE Ratio (11.8x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 540073's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 540073 is overvalued based on its PB Ratio (1.4x) compared to the IN IT industry average (0.8x).


Next Steps

Future Growth

How is BLS International Services forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.1%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as BLS International Services has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has BLS International Services performed over the past 5 years?

28.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 540073 has high quality earnings.

Growing Profit Margin: 540073's current net profit margins (7.1%) are lower than last year (13.5%).


Past Earnings Growth Analysis

Earnings Trend: 540073's earnings have grown significantly by 28.5% per year over the past 5 years.

Accelerating Growth: 540073's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 540073 had negative earnings growth (-43.5%) over the past year, making it difficult to compare to the IT industry average (6.6%).


Return on Equity

High ROE: 540073's Return on Equity (15.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BLS International Services's financial position?


Financial Position Analysis

Short Term Liabilities: 540073's short term assets (₹3.7B) exceed its short term liabilities (₹647.8M).

Long Term Liabilities: 540073's short term assets (₹3.7B) exceed its long term liabilities (₹23.1M).


Debt to Equity History and Analysis

Debt Level: 540073's debt to equity ratio (1.3%) is considered satisfactory.

Reducing Debt: 540073's debt to equity ratio has reduced from 5% to 1.3% over the past 5 years.

Debt Coverage: 540073's debt is well covered by operating cash flow (1149.2%).

Interest Coverage: 540073's interest payments on its debt are well covered by EBIT (47.2x coverage).


Balance Sheet

Inventory Level: 540073 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 540073's debt is covered by short term assets (assets are 70.8x debt).


Next Steps

Dividend

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

1.45%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%0.5%markettop25%2.3%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 540073's dividend (1.42%) is higher than the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 540073's dividend (1.42%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 540073 has been paying a dividend for less than 10 years.

Growing Dividend: 540073's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.8%), 540073'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

What is the CEO of BLS International Services's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Shikhar Aggarwal (28yo)

3.6yrs

Tenure

₹6,000,000

Compensation

Mr. Shikhar Aggarwal has been Joint Managing Director and Executive Director of BLS International Services Limited since June 17, 2016. Mr. Aggarwal has been associated with BLS International Services sinc ...


CEO Compensation Analysis

Compensation vs Market: Shikhar's total compensation ($USD84.67K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Shikhar's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: 540073's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

1.8yrs

Average Tenure

50yo

Average Age

Experienced Board: 540073's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Rakesh Amol

    MD & Additional Director

    • Tenure: 0.4yrs
  • Charu Khosla

    Chief Operating Officer of Strategic Markets

    • Tenure: 17.7yrs
  • Jitendra Sahu

    Chief Operating Officer of Visa & Consular Line of Business

    • Tenure: 4.4yrs
  • Shikhar Aggarwal (28yo)

    Joint MD & Executive Director

    • Tenure: 3.6yrs
    • Compensation: ₹6.00m
  • Abhishek Gupta

    Vice President Finance & Accounts and General Manager of Finance

    • Karan Aggarwal (33yo)

      Executive Director

      • Tenure: 2.6yrs
      • Compensation: ₹2.10m
    • Gautam Aggarwal

      Chief Human Resource Officer

      • Tenure: 2.3yrs
    • Amit Sudhakar

      Chief Financial Officer

      • Tenure: 0.4yrs
    • Neha Sinha

      Manager of Public Relations

      • Archana Maini

        Head of Legal & Company Secretary

        • Tenure: 0.8yrs
        • Compensation: ₹2.94m

      Board Members

      • Sarthak Behuria (67yo)

        Independent Non-Executive Director

        • Tenure: 3.2yrs
        • Compensation: ₹140.00k
      • Rakesh Amol

        MD & Additional Director

        • Tenure: 0.4yrs
      • Ravi Dhingra (70yo)

        Member of the Advisory Board

        • Tenure: 1yrs
      • Vinod Duggal

        Chairman of the Advisory Board

        • Tenure: 1yrs
      • Ram Bajpai (75yo)

        Independent Non-Executive Director

        • Tenure: 4.6yrs
        • Compensation: ₹150.00k
      • Shivani Mishra (30yo)

        Independent Non-Executive Director

        • Tenure: 4.6yrs
        • Compensation: ₹120.00k
      • Shikhar Aggarwal (28yo)

        Joint MD & Executive Director

        • Tenure: 3.6yrs
        • Compensation: ₹6.00m
      • Karan Aggarwal (33yo)

        Executive Director

        • Tenure: 2.6yrs
        • Compensation: ₹2.10m
      • Anil Wadhwa

        Member of the Advisory Board

        • Tenure: 1yrs
      • Rajiv Kumar

        Member of the Advisory Board

        • Tenure: 1yrs

      Company Information

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


      Key Information

      • Name: BLS International Services Limited
      • Ticker: 540073
      • Exchange: BSE
      • Founded: 1983
      • Industry: Data Processing and Outsourced Services
      • Sector: Software
      • Market Cap: ₹7.043b
      • Shares outstanding: 102.45m
      • Website: https://www.blsinternational.com

      Number of Employees


      Location

      • BLS International Services Limited
      • 912, Indra Prakash Building
      • 21 Barakhamba Road
      • New Delhi
      • Delhi
      • 110001
      • India

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      BLSNSEI (National Stock Exchange of India)YesShare CapitalININRJun 2016
      540073BSE (Mumbai Stock Exchange)YesShare CapitalININRJun 2016

      Biography

      BLS International Services Limited provides outsourcing and administrative services for governments and their diplomatic missions worldwide. The company provides outsourced visa and passport services, front end and citizen support, consular, passport verification, e-visa, biometrics and identity management, and verification and attestation services, B2C, as well as value added services. It also manages visa and passport-issuance related administrative and non-judgmental tasks for its client governments, which enables diplomatic missions to focus singularly on the judgemental part of the visa issuance process. BLS International Services Limited was incorporated in 1983 and is headquartered in New Delhi, India. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/26 13:15
      End of Day Share Price2020/01/24 00:00
      Earnings2019/09/30
      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.