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INVESTMENT INSIGHTS

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 quality company, based on a 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 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

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 10.3% , indicating slower growth.
Q.2 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 below its 5 year median of 15.1% , indicating decreasing margins.
Q.3 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 below its 5 year median of 13.36% indicating decreasing margins.
Q.4 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 Historic Median
Gross Profit Margin 14.6 15.1
Operating Profit Margin 12.84 13.36
Net Profit Margin 9.61 9.61
Q.5 Return on Asset of Birlasoft Ltd?
Birlasoft Ltd Return on Asset is 12.63(x), which is in line with its 5 year historical median of 12.63(x), indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Birlasoft Ltd?
Birlasoft Ltd Return on equity is 16.33% for FY-2025 , which is in line with its historical median of 16.33%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Birlasoft Ltd?
Birlasoft Ltd Return on capital employed is 22.05% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Birlasoft Ltd?
Birlasoft Ltd Cash conversion cycle is 48 , above its historical median of 46 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.31 1.33
ROE 16.33 16.33
ROCE 22.05 22.98
Cash Conversion Cycle 48 46
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 0.01 , 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, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Birlasoft Ltd?
Promoters hold 40.51% 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 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 5,375.2 23.6
Gross Profit 784.8 1.9
Operating Profit 678 1.2
Net Profit 517 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.31 0.45
ROE 16.33 4.09
ROCE 22.05 6.4
Cash Conversion Cycle 47.61 36

Valuation & price assessment

Q.1 Stock return of Birlasoft Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 9.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 9.5% 7.3% 11.5% 1.5%
Q.3 Valuation ratios of Birlasoft Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 22.05 20.29 22.96
Price to Book 2.68 2.49 2.61
Price to Sales 1.94 1.42 4.40
EV to EBITDA 11.16 9.29 17.20

Check more companies

1. Tata Elxsi
2. Tata Technologies
3. KPIT Technologies
4. Fractal Analytics
5. Zensar Technologies
6. Birlasoft
7. Cyient
8. Nazara Technologies
9. Intellect Design
10. Amagi Media Labs
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