Check Before You Invest : Birlasoft Ltd

BSE: 532400 NSE: BSOFT ISIN: INE836A01035

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Birlasoft Ltd belong to?

Birlasoft Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Birlasoft Ltd a good quality company?

Birlasoft Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Birlasoft Ltd undervalued or overvalued?

Birlasoft Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Birlasoft Ltd a good buy now?

Birlasoft 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 Birlasoft Ltd?

Birlasoft Ltd revenue growth is 1.8% for FY-2025, which is below its 5-year CAGR of 10.31%, indicating slower growth.

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

Birlasoft Ltd Return on capital employed is 22.05% for FY-2025, which is in line with its 5-year historical median of 22.98%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Birlasoft Ltd?

Birlasoft Ltd Return on Asset is 12.63%, which is in line with its 5-year historical median of 12.63%, indicating stable asset utilization efficiency.

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

Birlasoft Ltd Return on equity is 16.33% for FY-2025, which is in line with its 5-year historical median of 16.33%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of Birlasoft Ltd?

Birlasoft Ltd Cash conversion cycle is 48 days, in line with its 5-year historical median of 46 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	1.31	1.33
ROE	16.33	16.33
ROCE	22.05	22.98
Cash Conversion Cycle	48 days	46 days

Q.6 Gross Profit margin of Birlasoft Ltd?

Birlasoft Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.6% for FY-2025, which is in line with its 5-year median of 15.1%, indicating stable margins.

Q.7 Operating Profit Margin of Birlasoft Ltd?

Birlasoft Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.84% for FY-2025, which is in line with its 5-year median of 13.36% indicating stable margins.

Q.8 Net Profit Margin of Birlasoft Ltd?

Birlasoft Ltd Net Profit Margin is 9.61% for FY-2025, is in line with with its 5-year median of 9.61%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.6	15.1
Operating Profit Margin	12.84	13.36
Net Profit Margin	9.61	9.61

Q.9 Debt to Equity ratio of Birlasoft Ltd?

Birlasoft Ltd Debt-to-Equity ratio is 0.00, which is lower with the industry average of 0.11, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Birlasoft Ltd?

Birlasoft Ltd Debt to cash flow from operations is 0.02, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Birlasoft Ltd?

Promoters hold 40.39% of the Birlasoft Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Birlasoft Ltd vs industry peers?

Birlasoft Ltd revenue CAGR is 10.31%, compared to the industry median CAGR of 10.86%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	1.8	10.9
Gross Profit Growth	-14.9	19
Operating Profit Growth	-3.7	NAN
Net Profit Growth	-17.2	22

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.31	0.5
ROE	16.33	5.83
ROCE	22.05	6.79
Cash Conversion Cycle (days)	47.61	47

Valuation & price assessment

Q.1 Stock return of Birlasoft Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 8.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	8.8%	8.7%	8.5%	-7.1%

Q.3 Valuation ratios of Birlasoft 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	22.22	26.13	47.37
Price to Book	2.7	3.86	2.63
Price to Sales	1.96	2.32	4.79
EV to EBITDA	11.25	15.04	16.48

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