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 quality company, based on a 10-year financial track record.

Q.3 Is BITS Ltd undervalued or overvalued?

BITS Ltd appears Fair, as its key valuation ratios are in line 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 9.13%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of BITS Ltd?

BITS Ltd Return on capital employed is 1.19% for FY-2025, which is above its 5-year historical median of 0.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 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.4 Return on Equity (ROE) of BITS Ltd?

BITS Ltd Return on equity is 1.19% for FY-2025, which is above its 5-year historical median of 0.77%, indicating the business is making better use of its shareholders capital.

Q.5 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.6 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.7 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	5-year Historic Median
Gross Profit Margin	32.6	21.5
Operating Profit Margin	29.16	7.35
Net Profit Margin	18.76	15.29

Q.8 Debt to Equity ratio of BITS Ltd?

BITS Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.05, indicating lower debt levels in the industry.

Q.9 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.

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 -0.85%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	27	-0.9
Gross Profit Growth	94.7	1.1
Operating Profit Growth	450	NAN
Net Profit Growth	50	-18.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.06	0.12
ROE	1.19	0.21
ROCE	1.19	0.55
Cash Conversion Cycle (days)	20	28

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 33.9% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	33.9%	112.7%	251.7%	-26.1%

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 compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	181.27	223.75	31.71
Price to Book	5.25	1.47	1.07
Price to Sales	72.13	31.03	6.47
EV to EBITDA	129.3	127.79	9.26

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