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Last Updated on: 21 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Team Lease Services Ltd

Basic Stock Data

Last Updated: June 21, 2024, 5:11 pm

Market Cap 4,889 Cr.
Current Price 2,910
High / Low3,700/2,171
Stock P/E44.9
Book Value 476
Dividend Yield0.00 %
ROCE13.6 %
ROE13.6 %
Face Value 10.0
PEG Ratio1.68

Competitors of Team Lease Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Quess Corp Ltd 8,943 Cr. 603670/39829.8 1891.33 %11.7 %11.2 % 10.0
Kapston Services Ltd 404 Cr. 398414/13832.1 70.60.00 %12.6 %19.3 % 10.0
Affordable Robotic & Automation Ltd 666 Cr. 592851/410104 1000.00 %12.0 %10.8 % 10.0
CRISIL Ltd 30,063 Cr. 4,1115,268/3,66146.2 2991.31 %41.4 %32.3 % 1.00
SecUR Credentials Ltd 51.3 Cr. 12.525.8/12.210.7 12.00.00 %21.2 %18.8 % 10.0
Industry Average11,300.65 Cr1,096.9948.18281.530.37%14.20%12.29%8.83

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales1,3411,3771,5241,7621,8171,8791,9552,0082,0272,1722,2732,4452,432
Expenses1,3151,3471,4891,7241,7761,8541,9231,9771,9942,1452,2412,4092,395
Operating Profit26303438412532323426323637
OPM %2%2%2%2%2%1%2%2%2%1%1%1%2%
Other Income97-705512121081413149
Interest1111111222233
Depreciation99111011910111312131414
Profit before tax2527-4832352832292626293330
Tax %23%-1%-3%5%10%5%2%-1%8%0%6%6%5%
Net Profit2027-4930322732292426283128
EPS in Rs11.0615.83-28.9417.5318.0515.5218.6716.9414.0015.7416.2618.4916.39

Last Updated: June 9, 2024, 2:57 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: May 26, 2024, 9:48 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales1,2511,5302,0072,5053,0413,6244,4485,2014,8816,4807,8709,322
Expenses1,2561,5181,9832,4793,0043,5564,3545,1084,7846,3377,7489,191
Operating Profit-51224263769949397142122131
OPM %-0%1%1%1%1%2%2%2%2%2%2%1%
Other Income5811152216183132-524150
Interest10011251274610
Depreciation423369112934414353
Profit before tax-4183338527396838946115118
Tax %0%0%6%34%-12%-1%-2%58%11%13%3%4%
Net Profit-4183125587398357839112113
EPS in Rs-7.2434.9560.2314.5133.6742.9757.3420.4645.3322.4865.1266.88
Dividend Payout %0%0%0%0%0%0%0%0%0%0%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)550.00%72.22%-19.35%132.00%25.86%34.25%-64.29%122.86%-50.00%187.18%0.89%
Change in YoY Net Profit Growth (%)0.00%-477.78%-91.58%151.35%-106.14%8.38%-98.53%187.14%-172.86%237.18%-186.29%

Growth

Compounded Sales Growth
10 Years:20%
5 Years:17%
3 Years:15%
TTM:16%
Compounded Profit Growth
10 Years:46%
5 Years:8%
3 Years:46%
TTM:-9%
Stock Price CAGR
10 Years:%
5 Years:2%
3 Years:0%
1 Year:54%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:14%
Last Year:14%

Last Updated: April 13, 2024, 9:19 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1111171717171717171717
Reserves104100118148294349425522555635676791725
Borrowings8121-01917111242360100101
Other Liabilities84111124164248306437540559636785856915
Total Liabilities1972242433135796738861,0901,2551,3111,5381,7641,759
Fixed Assets191111511107138152265255262303316
CWIP-0-0-04-0-00611151817-0
Investments0000010594125705319428
Other Assets1772132333035675566898909549711,2041,2501,414
Total Assets1972242433135796738861,0901,2551,3111,5381,7641,759

Reserves and Borrowings Chart

Team Lease Services Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -40-91634-103679-1210303-6126
Cash from Investing Activity -317-35-24-119-19-242-47-12-88-123
Cash from Financing Activity 1044-11-1157-23-13-6-0-44-13-24
Net Cash Flow331-30928-642-17-38247-108-21

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-17.0011.0024.007.0036.0062.0083.00-31.0074.0082.0022.0026.00

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 Days211814151821232221212118
Inventory Days
Days Payable
Cash Conversion Cycle211814151821232221212118
Working Capital Days-2-01-3-0-2-8-4-1-4-0-3
ROCE %-20%3%16%24%16%15%18%20%15%14%16%14%

Financial Efficiency Indicators Chart

Touchwood Entertainment Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters34.01%34.01%32.51%32.51%31.51%31.51%31.51%31.51%31.51%31.61%31.61%31.61%
FIIs37.83%37.00%37.65%38.21%37.43%37.34%37.08%37.25%36.47%32.86%30.47%26.26%
DIIs17.02%17.60%17.98%17.88%21.19%21.14%21.24%23.81%24.85%27.81%30.41%35.33%
Public11.03%11.28%11.79%11.32%9.79%9.94%10.11%7.37%7.12%7.66%7.47%6.77%
Others0.11%0.11%0.07%0.07%0.07%0.07%0.07%0.05%0.05%0.05%0.04%0.04%
No. of Shareholders13,97212,87517,09719,82519,38320,10120,73220,87658,53724,97922,64219,908

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Mirae Asset ELSS Tax Saver Fund438,5430.69140.25260,9982024-06-2068.03%
Mirae Asset Midcap Fund410,6650.95131.33260,9982024-06-2057.34%
Aditya Birla Sun Life Small Cap Fund389,5502.37124.58260,9982024-06-2049.25%
Franklin India Smaller Companies Fund378,8871.06121.17260,9982024-06-2045.17%
ICICI Prudential Multicap Fund348,6801.08111.51260,9982024-06-2033.59%
Franklin India Flexi Cap Fund300,0000.795.94260,9982024-06-2014.94%
HDFC ELSS Tax Saver Fund300,0000.7395.94260,9982024-06-2014.94%
ICICI Prudential Technology Fund260,9980.783.47260,9982024-06-200%
UTI Mid Cap Fund257,3160.8482.29260,9982024-06-20-1.41%
Invesco India Contra Fund252,9480.6280.89260,9982024-06-20-3.08%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)66.6565.1222.4845.3320.46
Diluted EPS (Rs.)66.6565.1222.4845.3320.46
Cash EPS (Rs.)98.5090.4946.9366.2538.40
Book Value[Excl.RevalReserv]/Share (Rs.)483.75479.90412.82383.71334.62
Book Value[Incl.RevalReserv]/Share (Rs.)483.75479.90412.82383.71334.62
Revenue From Operations / Share (Rs.)5558.454603.203790.082855.193041.93
PBDIT / Share (Rs.)105.5397.2294.8177.9273.66
PBIT / Share (Rs.)74.2171.9770.9558.2156.94
PBT / Share (Rs.)70.2067.2826.6552.4249.75
Net Profit / Share (Rs.)67.1865.2523.0846.5321.68
NP After MI And SOA / Share (Rs.)66.8865.1222.4845.3320.46
PBDIT Margin (%)1.892.112.502.722.42
PBIT Margin (%)1.331.561.872.031.87
PBT Margin (%)1.261.460.701.831.63
Net Profit Margin (%)1.201.410.601.620.71
NP After MI And SOA Margin (%)1.201.410.591.580.67
Return on Networth / Equity (%)14.0513.785.5411.886.11
Return on Capital Employeed (%)12.4012.1614.2913.0414.28
Return On Assets (%)5.796.292.495.912.78
Long Term Debt / Equity (X)0.060.000.000.000.00
Total Debt / Equity (X)0.130.020.030.000.13
Asset Turnover Ratio (%)5.034.394.203.554.21
Current Ratio (X)1.311.451.431.520.98
Quick Ratio (X)1.311.451.431.520.98
Interest Coverage Ratio (X)17.3029.2040.8719.3110.25
Interest Coverage Ratio (Post Tax) (X)11.6721.0129.0512.974.02
Enterprise Value (Cr.)4293.713606.167156.326149.452589.06
EV / Net Operating Revenue (X)0.460.451.101.260.49
EV / EBITDA (X)24.2621.7044.1546.1620.56
MarketCap / Net Operating Revenue (X)0.490.481.141.320.50
Price / BV (X)5.764.7310.699.874.56
Price / Net Operating Revenue (X)0.490.481.141.320.50
EarningsYield0.020.020.010.010.01

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 2,964.78

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: 1.88% compared to the current price 2910

Intrinsic Value: 3,757.25

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: 29.12% compared to the current price ₹2910

Last 5 Year EPS CAGR: 26.73%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -2.17, which is a positive sign.
  2. The company has higher reserves (449.50 cr) compared to borrowings (38.58 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.92 cr) and profit (63.08 cr) over the years.
  1. The stock has a low average ROCE of 12.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 19.42, 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 Team Lease Services Ltd:
    1. Net Profit Margin: 1.20%
      • 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: 12.40% (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%: 14.05% (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): 11.67
      • 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: 1.31
      • 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: 44.9 (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: 0.13
      • 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

TeamLease Services Ltd. is a Public Limited Listed company incorporated on 02/02/2000 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L74140KA2000PLC118395 and registration number is 124003. Currently Company is involved in the business activities of Temporary employment agency activities. Company’s Total Operating Revenue is Rs. 5640.34 Cr. and Equity Capital is Rs. 17.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Services - Others315 Work Avenue Campus, Ascent Building, Bengaluru Karnataka 560095corporateaffairs@teamlease.com
https://group.teamlease.com
Management
NamePosition Held
Mr. Narayan RamachandranNon Executive Chairman
Mr. Manish Mahendra SabharwalVice Chairman & Whole Time Dir
Mr. Ashok ReddyManaging Director & CEO
Ms. Rituparna ChakrabortyExecutive Director
Mrs. Latika PradhanIndependent Director
Mr. Mekin MaheshwariIndependent Director
Mr. Subramaniam SomasundaramIndependent Director
Mrs. Meenakshi NevatiaIndependent Director
Dr. V RaghunathanIndependent Director
Mr. Zarir BatliwalaIndependent Director

FAQ

What is the latest fair value of Team Lease Services Ltd?

The latest fair value of Team Lease Services Ltd is ₹2964.78.

What is the Market Cap of Team Lease Services Ltd?

The Market Cap of Team Lease Services Ltd is 4,889 Cr..

What is the current Stock Price of Team Lease Services Ltd as on 21 June 2024?

The current stock price of Team Lease Services Ltd as on 21 June 2024 is ₹2,910.

What is the High / Low of Team Lease Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Team Lease Services Ltd stocks is 3,700/2,171.

What is the Stock P/E of Team Lease Services Ltd?

The Stock P/E of Team Lease Services Ltd is 44.9.

What is the Book Value of Team Lease Services Ltd?

The Book Value of Team Lease Services Ltd is 476.

What is the Dividend Yield of Team Lease Services Ltd?

The Dividend Yield of Team Lease Services Ltd is 0.00 %.

What is the ROCE of Team Lease Services Ltd?

The ROCE of Team Lease Services Ltd is 13.6 %.

What is the ROE of Team Lease Services Ltd?

The ROE of Team Lease Services Ltd is 13.6 %.

What is the Face Value of Team Lease Services Ltd?

The Face Value of Team Lease Services Ltd is 10.0.

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 Team Lease Services 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