MoneyWorks4Me

Check Before You Invest : BLS E-Services Ltd

BSE: 544107 NSE: BLSE ISIN: INE0NLT01010
  |   Sector:  Miscellaneous   |   Industry:  Professional Services

Snapshot

Q.1 Which industry/sub-sector does BLS E-Services Ltd belong to?
BLS E-Services Ltd belongs to the Miscellaneous sector, operating specifically within the Professional Services segment.
Q.2 Is BLS E-Services Ltd a good quality company?
BLS E-Services Ltd is a good quality company, based on a consistently good 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 E-Services Ltd undervalued or overvalued?
BLS E-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 50.84 87.93
Price to Book 5.47 4.64
Price to Sales 2.51 28.43
EV to EBITDA 26.44 61.80
Q.4 Is BLS E-Services Ltd a good buy now?
BLS E-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 E-Services Ltd?
BLS E-Services Ltd revenue growth is 115.2% for FY-2026, which is above its 5-year CAGR of 76.92%, indicating faster growth.

Q.2 Gross Profit margin of BLS E-Services Ltd?
BLS E-Services Ltd Gross profit margin which is the profit after deduction of direct costs, is 8.9% for FY-2026, which is below its 5-year median of 13.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of BLS E-Services Ltd?
BLS E-Services Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.72% for FY-2026, which is below its 5-year median of 11.57% indicating decreasing margins.

Q.4 Net Profit Margin of BLS E-Services Ltd?
BLS E-Services Ltd Net Profit Margin is 6.2% for FY-2026, is below its 5-year median of 8.36%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 8.9 13.3
Operating Profit Margin (%) 6.72 11.57
Net Profit Margin (%) 6.2 8.36

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of BLS E-Services Ltd?
BLS E-Services Ltd Return on Asset is 9.19%, which is below its 5-year historical median of 9.78%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of BLS E-Services Ltd?
BLS E-Services Ltd Return on capital employed is 18.67% for FY-2026, which is in line with its 5-year historical median of 18.67%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of BLS E-Services Ltd?
BLS E-Services Ltd Return on equity is 13.8% for FY-2026, which is in line with its 5-year historical median of 13.8%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of BLS E-Services Ltd?
BLS E-Services Ltd Cash conversion cycle is 10 days, in line with its 5-year historical median of 10 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.48 1.48
ROE (%) 13.8 13.8
ROCE (%) 18.67 18.67
Cash Conversion Cycle 10 days 10 days

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

Q.9 Debt to Equity ratio of BLS E-Services Ltd?
BLS E-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 E-Services Ltd?
BLS E-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 E-Services Ltd?

Q.1 Promoter shareholding and pledge status of BLS E-Services Ltd?
Promoters hold 71.87% of the BLS E-Services Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of BLS E-Services Ltd vs industry peers?
BLS E-Services Ltd revenue CAGR is 76.92%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 115.2 0
Gross Profit Growth (%) 16.5 15.2
Operating Profit Growth (%) 25 13.8
Net Profit Growth (%) 17 18.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.48 1.22
ROE (%) 13.8 12.02
ROCE (%) 18.67 13.78
Cash Conversion Cycle (days) 10.42 53

Valuation & price assessment

Q.1 Stock return of BLS E-Services Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 76.02% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 76%
Q.2 Valuation ratios of BLS E-Services Ltd vs historical?
The current P/E ratio of 50.84 is lower than its historical median of 87.93, 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 50.84 87.93 26.54
Price to Book 5.47 4.64 2.42
Price to Sales 2.51 28.43 1.70
EV to EBITDA 26.44 61.80 15.30

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