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Check Before You Invest : TeamLease Services Ltd

BSE: 539658 NSE: TEAMLEASE ISIN: INE985S01024
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does TeamLease Services Ltd belong to?
TeamLease Services Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is TeamLease Services Ltd a good quality company?
TeamLease Services Ltd is a good quality company, based on a consistently good 10-year financial track record.
Q.3 Is TeamLease Services Ltd undervalued or overvalued?
TeamLease Services Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is TeamLease Services Ltd a good buy now?
TeamLease Services Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of TeamLease Services Ltd?
TeamLease Services Ltd revenue growth is 19.7% for FY-2025, which is above its 5-year CAGR of 16.49%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of TeamLease Services Ltd?
TeamLease Services Ltd Return on capital employed is 14.52% for FY-2025, which is in line with its 5-year historical median of 14.68%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.
Q.3 Return on Asset of TeamLease Services Ltd?
TeamLease Services Ltd Return on Asset is 5.43%, which is below its 5-year historical median of 6.11%, indicating deteriorated asset utilization efficiency.
Q.4 Return on Equity (ROE) of TeamLease Services Ltd?
TeamLease Services Ltd Return on equity is 13.01% for FY-2025, which is in line with its 5-year historical median of 13.01%, indicating the business is making similar use of its shareholders capital.
Q.5 Cash conversion cycle of TeamLease Services Ltd?
TeamLease Services Ltd Cash conversion cycle is 13 days, below its 5-year historical median of 15 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 5.49 4.77
ROE 13.01 13.01
ROCE 14.52 14.68
Cash Conversion Cycle 13 days 15 days
Q.6 Gross Profit margin of TeamLease Services Ltd?
TeamLease Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 1.5% for FY-2025, which is below its 5-year median of 2%, indicating decreasing margins.
Q.7 Operating Profit Margin of TeamLease Services Ltd?
TeamLease Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 1.24% for FY-2025, which is below its 5-year median of 1.49% indicating decreasing margins.
Q.8 Net Profit Margin of TeamLease Services Ltd?
TeamLease Services Ltd Net Profit Margin is 0.99% for FY-2025, is below with its 5-year median of 1.21%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin 1.5 2
Operating Profit Margin 1.24 1.49
Net Profit Margin 0.99 1.21
Q.9 Debt to Equity ratio of TeamLease Services Ltd?
TeamLease Services Ltd Debt-to-Equity ratio is 0.05, which is lower with the industry average of 0.21, indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of TeamLease Services Ltd?
TeamLease Services Ltd Debt to cash flow from operations is 0.43, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of TeamLease Services Ltd?
Promoters hold 31.11% of the TeamLease Services Ltd, with 1.61% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of TeamLease Services Ltd vs industry peers?
TeamLease Services Ltd revenue CAGR is 16.49%, compared to the industry median CAGR of 12.21%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth 19.7 12.2
Gross Profit Growth 0.6 14.9
Operating Profit Growth 7 9.1
Net Profit Growth -2.7 14.9
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 5.49 1.39
ROE 13.01 13.01
ROCE 14.52 12.98
Cash Conversion Cycle (days) 13.21 61

Valuation & price assessment

Q.1 Stock return of TeamLease Services Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 3.1% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
3.1% -17.4% -15.7% -33.1%
Q.3 Valuation ratios of TeamLease Services 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 15.83 43.79 29.19
Price to Book 2.07 5.52 2.44
Price to Sales 0.18 0.49 1.70
EV to EBITDA 8.54 23.28 15.37

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