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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Team Lease Services Ltd

About the Company - Team Lease Services Ltd

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

TeamLease Services Ltd. Share Price Update

Share PriceValue
Today₹3,036.80
Previous Day₹3,049.65

Basic Stock Data of Team Lease Services Ltd

Market Cap 5,315 Cr.
Current Price 3,170
High / Low3,600/2,007
Stock P/E49.8
Book Value 442
Dividend Yield0.00 %
ROCE13.9 %
ROE14.4 %
Face Value 10.0

Data Source: screener.in

Competitors of Team Lease Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
NESCO Ltd 6,223 Cr. 883934/50518.2 2980.51 %21.8 %16.7 % 2.00
SIS Ltd 6,390 Cr. 438565/31821.7 1700.00 %10.6 %15.6 % 5.00
Ace Integrated Solutions Ltd 39.3 Cr. 38.657.8/30.6 17.90.00 %3.88 %2.80 % 10.0
SecUR Credentials Ltd 84.6 Cr. 20.633.8/15.617.6 12.00.00 %21.2 %18.8 % 10.0
Quess Corp Ltd 7,857 Cr. 529582/33733.7 1821.51 %9.39 %7.37 % 10.0
Industry Average28.58 Cr381.8418.24135.980.4%13.37%12.25%7.4

Team Lease Services Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,2751,3411,3771,5241,7621,8171,8791,9552,0082,0272,1722,2732,445
Expenses1,2511,3151,3471,4891,7241,7761,8541,9231,9771,9942,1452,2412,409
Operating Profit24263034384125323234263236
OPM %2%2%2%2%2%2%1%2%2%2%1%1%1%
Other Income1097-70551212108141314
Interest1111111122223
Depreciation8991110119101113121314
Profit before tax252527-48323528322926262933
Tax %6%23%-1%-3%5%10%5%2%-1%8%0%6%6%
Net Profit232027-49303227322924262831
EPS in Rs13.3811.0615.83-28.9417.5318.0515.5218.6716.9414.0015.7416.2618.49

Team Lease Services Ltd Quarterly Chart

Touchwood Entertainment Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales9261,2511,5302,0072,5053,0413,6244,4485,2014,8816,4807,8708,917
Expenses9441,2561,5181,9832,4793,0043,5564,3545,1084,7846,3377,7488,789
Operating Profit-19-51224263769949397142122128
OPM %-2%-0%1%1%1%1%2%2%2%2%2%2%1%
Other Income65811152216183132-524148
Interest010011251274610
Depreciation4423369112934414352
Profit before tax-16-4183338527396838946115115
Tax %-0%-0%-0%6%34%-12%-1%-2%58%11%13%3%
Net Profit-16-4183125587398357839112109
EPS in Rs-32.29-7.2434.9560.2314.5133.6742.9757.3420.4645.3322.4865.1264.49
Dividend Payout %-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%-0%

Team Lease Services Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)75.00%550.00%72.22%-19.35%132.00%25.86%34.25%-64.29%122.86%-50.00%187.18%
Change in YoY Net Profit Growth (%)0.00%475.00%-477.78%-91.58%151.35%-106.14%8.38%-98.53%187.14%-172.86%237.18%

Team Lease Services Ltd 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:0%
3 Years:1%
1 Year:23%
Return on Equity
10 Years:14%
5 Years:14%
3 Years:14%
Last Year:14%

Touchwood Entertainment Ltd 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

Team Lease Services Ltd 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

Touchwood Entertainment Ltd 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%

Team Lease Services Ltd 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

Team Lease Services Ltd Shareholding Pattern Chart

No. of Team Lease Services Ltd Shareholders

Team Lease Services Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Mirae Asset ELSS Tax Saver Fund4385430.69140.25
Mirae Asset Midcap Fund4106650.95131.33
Aditya Birla Sun Life Small Cap Fund3895502.37124.58
Franklin India Smaller Companies Fund3788871.06121.17
ICICI Prudential Multicap Fund3486801.08111.51
Franklin India Flexi Cap Fund3000000.795.94
HDFC ELSS Tax Saver Fund3000000.7395.94
ICICI Prudential Technology Fund2609980.783.47
UTI Mid Cap Fund2573160.8482.29
Invesco India Contra Fund2529480.6280.89

Team Lease Services Ltd ROCE Trend

Team Lease Services Ltd EPS Trend

Team Lease Services Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)65.1222.4845.3320.4657.34
Diluted EPS (Rs.)65.1222.4845.3320.4657.34
Cash EPS (Rs.)90.4946.9366.2538.4063.70
Book Value[Excl.RevalReserv]/Share (Rs.)479.90412.82383.71334.62315.33
Book Value[Incl.RevalReserv]/Share (Rs.)479.90412.82383.71334.62315.33
Revenue From Operations / Share (Rs.)4603.203790.082855.193041.932601.42
PBDIT / Share (Rs.)97.2294.8177.9273.6665.81
PBIT / Share (Rs.)71.9770.9558.2156.9459.66
PBT / Share (Rs.)67.2826.6552.4249.7556.60
Net Profit / Share (Rs.)65.2523.0846.5321.6857.55
NP After MI And SOA / Share (Rs.)65.1222.4845.3320.4657.34
PBDIT Margin (%)2.112.502.722.422.52
PBIT Margin (%)1.561.872.031.872.29
PBT Margin (%)1.460.701.831.632.17
Net Profit Margin (%)1.410.601.620.712.21
NP After MI And SOA Margin (%)1.410.591.580.672.20
Return on Networth / Equity (%)13.785.5411.886.1118.18
Return on Capital Employeed (%)12.1614.2913.0414.2816.85
Return On Assets (%)6.292.495.912.788.99
Total Debt / Equity (X)0.020.030.000.130.01
Asset Turnover Ratio (%)4.394.203.554.214.31
Current Ratio (X)1.451.431.520.981.15
Quick Ratio (X)1.451.431.520.981.15
Interest Coverage Ratio (X)29.2040.8719.3110.2521.54
Interest Coverage Ratio (Post Tax) (X)21.0129.0512.974.0219.83
Enterprise Value (Cr.)3606.167156.326149.452589.065020.13
EV / Net Operating Revenue (X)0.451.101.260.491.13
EV / EBITDA (X)21.7044.1546.1620.5644.62
MarketCap / Net Operating Revenue (X)0.481.141.320.501.15
Price / BV (X)4.7310.699.874.569.52
Price / Net Operating Revenue (X)0.481.141.320.501.15
EarningsYield0.020.010.010.010.01

Team Lease Services Ltd Profitability Ratios (%)

Team Lease Services Ltd Liquidity Ratios

Team Lease Services Ltd Liquidity Ratios (%)

Team Lease Services Ltd Interest Coverage Ratios (X)

Team Lease Services Ltd Valuation Ratios

Fair Value / Intrinsic Value of Team Lease Services Ltd

Fair Value: ₹3233.06

The stock is undervalued by 1.99% compared to the current price ₹3170

*Investments are subject to market risks

Strength and Weakness of Team Lease Services Ltd

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 (418.62 cr) compared to borrowings (35.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (74.77 cr) and profit (56.77 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 63.55 and average Dividend Yield of 1.92%.
  2. The stock has a low average ROCE of 12.58%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 19.42, which may not be favorable.

Should I Buy Team Lease Services Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Team Lease Services Ltd:
    1. Net Profit Margin: 1.41%
      • 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: 12.16% (Industry Average ROCE: 17.9%)
      • 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. Interest Coverage Ratio (Post Tax): 21.01
      • 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.
    4. Quick Ratio: 1.45
      • 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.
    5. ✗ Stock P/E: 50.0 (Industry average Stock P/E: 31.34)
      • 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.
    6. ✓ Total Debt / Equity: 0.02
      • 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 suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

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