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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532400 | NSE: BSOFT

Fundamental Analysis of Birlasoft Ltd

Basic Stock Data

Last Updated: June 17, 2024, 8:38 pm

Market Cap 18,717 Cr.
Current Price 678
High / Low862/333
Stock P/E30.0
Book Value 110
Dividend Yield0.52 %
ROCE30.1 %
ROE22.7 %
Face Value 2.00
PEG Ratio1.50

Competitors of Birlasoft Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
KPIT Technologies Ltd 40,572 Cr. 1,4801,764/96168.5 78.30.28 %38.4 %31.2 % 10.0
Covidh Technologies Ltd 2.15 Cr. 2.032.03/1.48 0.210.00 %%% 10.0
Contil India Ltd 46.4 Cr. 150178/73.432.9 30.90.00 %23.8 %16.7 % 10.0
Melstar Information Technologies Ltd 7.00 Cr. 4.906.30/1.85 2.770.00 %177 %% 10.0
Spacenet Enterprises India Ltd 1,855 Cr. 33.839.4/15.4258 1.840.00 %10.6 %10.4 % 1.00
Industry Average37,381.56 Cr714.5164.60125.030.72%20.19%19.78%6.84

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales8819039451,0121,0721,1011,1541,1921,2221,2261,2631,3101,343
Expenses7367507948609099279851,0161,2151,0591,0701,1031,129
Operating Profit1441521511521631751701767167193207214
OPM %16%17%16%15%15%16%15%15%1%14%15%16%16%
Other Income165219132315-312-2141628
Interest3333343664466
Depreciation20181819192020212121212221
Profit before tax137137151138154174162147-7140182196215
Tax %29%28%25%25%26%23%26%22%-139%20%24%26%25%
Net Profit9699114103114133121115-16112138145161
EPS in Rs3.483.574.093.714.094.754.314.23-0.604.085.005.275.84

Last Updated: June 13, 2024, 8:23 am

Quarterly Chart

Birlasoft Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,5002,2392,6942,9903,2243,3202,2502,5513,2913,5564,1304,7955,021
Expenses1,2831,9032,3162,6662,7902,9711,9672,2442,8993,0263,4904,2734,446
Operating Profit217336378324435349283306392529640522575
OPM %14%15%14%11%13%10%13%12%12%15%16%11%11%
Other Income241045351647871004319662240
Interest714262617148111613131919
Depreciation44475485698340508380778285
Profit before tax189285343248365299322346336455617442510
Tax %23%27%27%5%23%20%21%16%33%29%25%25%
Net Profit148208249237281239254292224321464332378
EPS in Rs10.3212.8312.0514.2212.0812.8010.568.1111.5716.5912.0613.75
Dividend Payout %9%9%8%9%15%17%18%19%25%30%27%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)40.54%19.71%-4.82%18.57%-14.95%6.28%14.96%-23.29%43.30%44.55%-28.45%
Change in YoY Net Profit Growth (%)0.00%-20.83%-24.53%23.38%-33.51%21.22%8.68%-38.25%66.59%1.24%-73.00%

Growth

Compounded Sales Growth
10 Years:7%
5 Years:16%
3 Years:14%
TTM:10%
Compounded Profit Growth
10 Years:10%
5 Years:18%
3 Years:25%
TTM:92%
Stock Price CAGR
10 Years:21%
5 Years:48%
3 Years:20%
1 Year:102%
Return on Equity
10 Years:17%
5 Years:17%
3 Years:18%
Last Year:23%

Last Updated: June 17, 2024, 3:08 pm

Birlasoft Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital36393738383838555555565555
Reserves6779981,2381,2591,3481,5451,7791,6591,8372,1242,5272,3932,670
Borrowings2223634955052503873103814512812310286
Other Liabilities401384375473547559606746650686677637740
Total Liabilities1,3361,7832,1452,2742,1832,5282,7332,4982,6872,9943,3833,1873,550
Fixed Assets529619813730630671829588751698725736702
CWIP182421236138320273610
Investments5821518682127912919133571840563964
Other Assets7309251,1441,4511,5051,6411,7431,7191,9011,7191,8161,8821,874
Total Assets1,3361,7832,1452,2742,1832,5282,7332,4982,6872,9943,3833,1873,550

Reserves and Borrowings Chart

Birlasoft Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 100120103289410163407-72310558281561
Cash from Investing Activity -270-350-190-102-146-150-193123-42-444-309252
Cash from Financing Activity 10827279-40-30780-128-116-180-97-147-636
Net Cash Flow-6143-8147-429386-648817-176176

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-5.00-27.00-117.00-181.00185.00-38.00-27.00268.00247.00401.00517.00420.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days107769185788613110282536056
Inventory Days
Days Payable
Cash Conversion Cycle107769185788613110282536056
Working Capital Days453657494149786149415641
ROCE %24%25%22%15%23%16%16%17%18%22%25%17%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters40.72%40.67%40.66%40.55%40.40%40.32%41.48%41.31%41.08%41.03%40.97%40.95%
FIIs17.40%17.29%17.38%17.39%15.41%15.24%12.95%12.40%11.47%11.31%17.57%21.25%
DIIs17.66%19.61%21.97%21.36%22.66%21.12%19.87%20.10%21.20%24.49%22.40%20.16%
Public23.90%22.15%19.77%20.54%21.40%23.19%25.61%26.10%26.18%23.10%19.03%17.60%
Others0.32%0.28%0.21%0.16%0.13%0.13%0.10%0.09%0.08%0.06%0.04%0.03%
No. of Shareholders1,05,3511,29,5531,80,4242,23,4382,88,9733,43,0123,71,1283,83,0173,80,1063,64,0883,18,3483,20,155

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Axis Small Cap Fund10,089,9523.99783.081,137,4602024-06-17787.06%
HSBC Small Cap Fund - Regular Plan3,292,4001.86255.521,137,4602024-06-17189.45%
HSBC Value Fund2,829,3811.9219.591,137,4602024-06-17148.75%
Nippon India Small Cap Fund2,802,7090.47217.521,137,4602024-06-17146.4%
Axis Multicap Fund2,210,1193.4171.531,137,4602024-06-1794.3%
HSBC Midcap Fund1,374,9001.1106.711,137,4602024-06-1720.87%
Kotak Equity Arbitrage Fund - Regular Plan1,375,0000.27106.711,137,4602024-06-1720.88%
Edelweiss Small Cap Fund1,280,6513.1699.391,137,4602024-06-1712.59%
Tata Digital India Fund1,137,4600.8888.281,137,4602024-06-170%
Canara Robeco Small Cap Fund1,077,9610.8783.661,137,4602024-06-17-5.23%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue2.002.002.002.002.00
Basic EPS (Rs.)11.9616.6311.538.1113.53
Diluted EPS (Rs.)11.9616.6311.298.0613.38
Cash EPS (Rs.)15.0619.3314.4711.0912.48
Book Value[Excl.RevalReserv]/Share (Rs.)89.0792.4278.6268.3962.51
Book Value[Incl.RevalReserv]/Share (Rs.)89.0792.4278.6268.3962.51
Revenue From Operations / Share (Rs.)174.44147.78128.23118.9393.04
PBDIT / Share (Rs.)19.7625.2719.7715.7212.13
PBIT / Share (Rs.)16.7722.5316.8712.7310.31
PBT / Share (Rs.)16.1022.0616.4012.1510.55
Net Profit / Share (Rs.)12.0616.5911.578.1110.66
NP After MI And SOA / Share (Rs.)12.0616.5911.578.1110.56
PBDIT Margin (%)11.3317.1015.4113.2113.03
PBIT Margin (%)9.6115.2413.1510.7011.07
PBT Margin (%)9.2214.9312.7910.2111.34
Net Profit Margin (%)6.9111.229.026.8111.45
NP After MI And SOA Margin (%)6.9111.229.026.8111.34
Return on Networth / Equity (%)13.5417.9414.7111.8516.89
Return on Capital Employeed (%)17.9823.1219.8216.9715.84
Return On Assets (%)10.4013.7010.718.3411.59
Total Debt / Equity (X)0.000.000.000.000.02
Asset Turnover Ratio (%)0.960.810.720.700.45
Current Ratio (X)3.483.693.322.762.34
Quick Ratio (X)3.483.693.322.762.34
Dividend Payout Ratio (NP) (%)37.6823.9517.2736.8215.77
Dividend Payout Ratio (CP) (%)30.1920.5613.8126.9113.45
Earning Retention Ratio (%)62.3276.0582.7363.1884.23
Cash Earning Retention Ratio (%)69.8179.4486.1973.0986.55
Interest Coverage Ratio (X)29.2354.2742.0326.9730.66
Interest Coverage Ratio (Post Tax) (X)18.8436.6325.6014.9121.09
Enterprise Value (Cr.)6620.6212323.075969.541071.662354.43
EV / Net Operating Revenue (X)1.382.981.680.320.92
EV / EBITDA (X)12.1917.4510.892.467.08
MarketCap / Net Operating Revenue (X)1.503.081.970.511.06
Retention Ratios (%)62.3176.0482.7263.1784.22
Price / BV (X)2.934.923.220.891.57
Price / Net Operating Revenue (X)1.503.081.970.511.06
EarningsYield0.040.030.040.130.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 753.00

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

Undervalued: 11.06% compared to the current price 678

Intrinsic Value: 903.68

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 33.29% compared to the current price ₹678

Last 5 Year EPS CAGR: 20.01%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.00%, which is a positive sign.
  2. The company has higher reserves (1,696.46 cr) compared to borrowings (242.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (2.77 cr) and profit (383.00 cr) over the years.
  1. The stock has a high average Working Capital Days of 50.25, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 83.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Birlasoft Ltd:
    1. Net Profit Margin: 6.91%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.98% (Industry Average ROCE: %)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.54% (Industry Average ROE: %)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 18.84
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.48
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. ✗ Stock P/E: 30.0 (Industry average Stock P/E: )
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.00
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Birlasoft Ltd. is a Public Limited Listed company incorporated on 28/12/1990 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L72200PN1990PLC059594 and registration number is 059594. Currently Company is involved in the business activities of Writing , modifying, testing of computer program to meet the needs of a particular client excluding web-page designing. Company’s Total Operating Revenue is Rs. 2049.38 Cr. and Equity Capital is Rs. 55.90 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwarePlot No. 35 & 36, Rajiv Gandhi Infotech Park, Pune Maharashtra 411057contactus@birlasoft.com
http://www.birlasoft.com
Management
NamePosition Held
Mrs. Amita BirlaChairman
Mr. Chandrakant BirlaNon Exe.Non Ind.Director
Mr. Ashok Kumar BaratInd. Non-Executive Director
Ms. Nandita GurjarInd. Non-Executive Director
Mr. Ananth SankaranarayananInd. Non-Executive Director
Mr. Angan GuhaExecutive Director

FAQ

What is the latest fair value of Birlasoft Ltd?

The latest fair value of Birlasoft Ltd is ₹753.00.

What is the Market Cap of Birlasoft Ltd?

The Market Cap of Birlasoft Ltd is 18,717 Cr..

What is the current Stock Price of Birlasoft Ltd as on 21 June 2024?

The current stock price of Birlasoft Ltd as on 21 June 2024 is ₹678.

What is the High / Low of Birlasoft Ltd stocks in FY 2024?

In FY 2024, the High / Low of Birlasoft Ltd stocks is 862/333.

What is the Stock P/E of Birlasoft Ltd?

The Stock P/E of Birlasoft Ltd is 30.0.

What is the Book Value of Birlasoft Ltd?

The Book Value of Birlasoft Ltd is 110.

What is the Dividend Yield of Birlasoft Ltd?

The Dividend Yield of Birlasoft Ltd is 0.52 %.

What is the ROCE of Birlasoft Ltd?

The ROCE of Birlasoft Ltd is 30.1 %.

What is the ROE of Birlasoft Ltd?

The ROE of Birlasoft Ltd is 22.7 %.

What is the Face Value of Birlasoft Ltd?

The Face Value of Birlasoft Ltd is 2.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Birlasoft Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE