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MoneyWorks4Me

Check Before You Invest : NSB BPO Solutions Ltd

BSE: 544571 NSE: ISIN: INE0SLP01017
  |   Sector:  IT & ITES   |   Industry:  BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does NSB BPO Solutions Ltd belong to?
NSB BPO Solutions Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.
Q.2 Is NSB BPO Solutions Ltd a good quality company?
NSB BPO Solutions Ltd is a weak quality company, based on a inconsistent 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 NSB BPO Solutions Ltd undervalued or overvalued?
NSB BPO Solutions Ltd appears Fair, as its key valuation ratios are in line with 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 16.63 19.56
Price to Book 0.71 0.91
Price to Sales 1.03 1.21
EV to EBITDA 8.48 9.81
Q.4 Is NSB BPO Solutions Ltd a good buy now?
NSB BPO Solutions 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

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.

Q.1 Gross Profit margin of NSB BPO Solutions Ltd?
NSB BPO Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.3% for FY-2025, which is above its 5-year median of 7.6%, indicating increasing margins.

Q.2 Operating Profit Margin of NSB BPO Solutions Ltd?
NSB BPO Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.36% for FY-2025, which is above its 5-year median of 9.95% indicating increasing margins.

Q.3 Net Profit Margin of NSB BPO Solutions Ltd?
NSB BPO Solutions Ltd Net Profit Margin is 6.18% for FY-2025, is above its 5-year median of 3.23%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 11.3 7.6
Operating Profit Margin (%) 13.36 9.95
Net Profit Margin (%) 6.18 3.23

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of NSB BPO Solutions Ltd?
NSB BPO Solutions Ltd Return on Asset is 5.46%, which is above its 5-year historical median of 3.41%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of NSB BPO Solutions Ltd?
NSB BPO Solutions Ltd Return on capital employed is 10.39% for FY-2025, which is above its 5-year historical median of 7.8%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of NSB BPO Solutions Ltd?
NSB BPO Solutions Ltd Return on equity is 7.14% for FY-2025, which is above its 5-year historical median of 5.24%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of NSB BPO Solutions Ltd?
NSB BPO Solutions Ltd Debt-to-Equity ratio is 0.17, which is above the industry average of 0.05, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of NSB BPO Solutions Ltd?
NSB BPO Solutions Ltd Debt to cash flow from operations is -2.56, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of NSB BPO Solutions Ltd?

Q.1 Promoter shareholding and pledge status of NSB BPO Solutions Ltd?
Promoters hold 33.63% of the NSB BPO Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does NSB BPO Solutions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of NSB BPO Solutions Ltd vs industry peers?
NSB BPO Solutions Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 3.91%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - 3.9
Gross Profit Growth (%) 60 10.8
Operating Profit Growth (%) 38.5 10.8
Net Profit Growth (%) 80 8.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.88 0.72
ROE (%) 7.14 10.43
ROCE (%) 10.39 15.4
Cash Conversion Cycle (days) 118.34 38

Valuation & price assessment

Q.1 Stock return of NSB BPO Solutions Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of NSB BPO Solutions Ltd vs historical?
The current P/E ratio of 16.63 is lower than its historical median of 19.56, indicating that the stock is trading below 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 16.63 19.56 29.72
Price to Book 0.71 0.91 2.75
Price to Sales 1.03 1.21 4.18
EV to EBITDA 8.48 9.81 15.58

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