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Check Before You Invest : BLS International Services Ltd

BSE: 540073 NSE: BLS ISIN: INE153T01027
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does BLS International Services Ltd belong to?
BLS International Services Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is BLS International Services Ltd a good quality company?
BLS International Services Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is BLS International Services Ltd undervalued or overvalued?
BLS International Services Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 366.39 385.65
Price to Book 118.37 119.66
Price to Sales 71.64 104.66
EV to EBITDA 210.35 308.85
Q.4 Is BLS International Services Ltd a good buy now?
BLS International Services Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of BLS International Services Ltd?
BLS International Services Ltd revenue growth is 16.7% for FY-2025, which is below its 5-year CAGR of 21.12%, indicating slower growth.

Q.2 Gross Profit margin of BLS International Services Ltd?
BLS International Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.3% for FY-2025, which is below its 5-year median of 47.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of BLS International Services Ltd?
BLS International Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.18% for FY-2025, which is below its 5-year median of 7.13% indicating decreasing margins.

Q.4 Net Profit Margin of BLS International Services Ltd?
BLS International Services Ltd Net Profit Margin is 15.86% for FY-2025, is below its 5-year median of 40.02%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 26.3 47.9
Operating Profit Margin (%) -4.18 7.13
Net Profit Margin (%) 15.86 40.02

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of BLS International Services Ltd?
BLS International Services Ltd Return on Asset is 12.77%, which is below its 5-year historical median of 32%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of BLS International Services Ltd?
BLS International Services Ltd Return on capital employed is 27.99% for FY-2025, which is below its 5-year historical median of 50.39%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of BLS International Services Ltd?
BLS International Services Ltd Return on equity is 24.7% for FY-2025, which is below its 5-year historical median of 42.77%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of BLS International Services Ltd?
BLS International Services Ltd Cash conversion cycle is 6 days, below its 5-year historical median of 13 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.81 0.81
ROE (%) 24.7 42.77
ROCE (%) 27.99 50.39
Cash Conversion Cycle 6 days 13 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of BLS International Services Ltd?
BLS International Services Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.08, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of BLS International Services Ltd?
BLS International Services Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of BLS International Services Ltd?

Q.1 Promoter shareholding and pledge status of BLS International Services Ltd?
Promoters hold 70.39% of the BLS International Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does BLS International Services Ltd performance compare with that of its Peers?

Q.1 Revenue growth of BLS International Services Ltd vs industry peers?
BLS International Services Ltd revenue CAGR is 21.12%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 16.7 -
Gross Profit Growth (%) -23.4 14.9
Operating Profit Growth (%) -146.2 9.3
Net Profit Growth (%) -40.5 16.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.81 1.38
ROE (%) 24.7 12.58
ROCE (%) 27.99 12.8
Cash Conversion Cycle (days) 5.65 54

Valuation & price assessment

Q.1 Stock return of BLS International Services Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 65.43% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 65.4% 16.9% -15.5%
Q.2 Valuation ratios of BLS International Services Ltd vs historical?
The current P/E ratio of 366.39 is in line with than its historical median of 385.65, indicating that the stock is trading near its historical average valuation.
Q.3 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 366.39 385.65 26.54
Price to Book 118.37 119.66 2.42
Price to Sales 71.64 104.66 1.70
EV to EBITDA 210.35 308.85 15.30

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