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Check Before You Invest : BITS Ltd

BSE: 526709 NSE: ISIN: INE839A01021
  |   Sector:  IT & ITES   |   Industry:  IT - Education

Snapshot

Q.1 Which industry/sub-sector does BITS Ltd belong to?
BITS Ltd belongs to the IT & ITES sector, operating specifically within the IT - Education segment.
Q.2 Is BITS Ltd a good quality company?
BITS Ltd is a weak quality company, based on a inconsistent 10 year financial track record.
Q.3 Is BITS Ltd undervalued or overvalued?
BITS Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is BITS Ltd a good buy now?
BITS Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of BITS Ltd?
BITS Ltd revenue growth is 27% for FY-2025 , which is above its 5 year CAGR of 9.1% , indicating faster growth.
Q.2 Gross Profit margin of BITS Ltd?
BITS Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.6% for FY-2025 , which is above its 5 year median of 21.5% , indicating increasing margins.
Q.3 Operating Profit Margin of BITS Ltd?
BITS Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.16% for FY-2025 , which is above its 5 year median of 7.35% indicating increasing margins.
Q.4 Net Profit Margin of BITS Ltd?
BITS Ltd Net Profit Margin is 18.76% for FY-2025 , is above with its 5 year median of 15.29%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 32.6 21.5
Operating Profit Margin 29.16 7.35
Net Profit Margin 18.76 15.29
Q.5 Return on Asset of BITS Ltd?
BITS Ltd Return on Asset is 1.15%, which is above its 5 year historical median of 0.75%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of BITS Ltd?
BITS Ltd Return on equity is 1.19% for FY-2025 , which is above its historical median of 0.77%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of BITS Ltd?
BITS Ltd Return on capital employed is 1.19% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of BITS Ltd?
BITS Ltd Cash conversion cycle is 20 days, above its historical median of 6 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.06 0.04
ROE 1.19 0.77
ROCE 1.19 0.8
Cash Conversion Cycle 20 days 6 days
Q.9 Debt to Equity ratio of BITS Ltd?
BITS Ltd Debt-to-Equity ratio is 0.00 , which is in line with the industry average of 0 , indicating similar to debt levels in the industry.
Q.10 Debt to cash flow from operations of BITS Ltd?
BITS Ltd Debt to cash flow from operations is 0 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of BITS Ltd?
Promoters hold 65.07% of the BITS Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of BITS Ltd vs industry peers?
BITS Ltd revenue CAGR is 9.13% , compared to the industry median CAGR of 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1.1 3.6
Gross Profit 0.3 0.1
Operating Profit - -0.8
Net Profit - -
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.06 0.04
ROE 1.19 0.02
ROCE 1.19 0.29
Cash Conversion Cycle (days) 20 26

Valuation & price assessment

Q.1 Stock return of BITS Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 33.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 33.7% 116.3% 261.7% -24.4%
Q.3 Valuation ratios of BITS Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 198.94 482.46 28.40
Price to Book 5.76 0.44 1.17
Price to Sales 79.16 9.50 6.52
EV to EBITDA 141.94 141.30 9.62

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