Why is BLS E-Services Ltd ?
1
Company has a low Debt to Equity ratio (avg) at 0 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 75.10% and Operating profit at 107.16%
3
The company has declared Positive results for the last 7 consecutive quarters
- NET SALES(Q) At Rs 269.75 cr has Grown at 56.8% (vs previous 4Q average)
- PBDIT(Q) Highest at Rs 19.99 cr.
- PBT LESS OI(Q) Highest at Rs 18.30 cr.
4
With ROE of 11.2, it has a Fair valuation with a 3.9 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -5.78%, its profits have risen by 67% ; the PEG ratio of the company is 0.5
5
Despite the size of the company, domestic mutual funds hold only 0% of the company
- Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -5.78% returns in the last 1 year, the stock has also underperformed BSE500 in each of the last 3 annual periods
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is BLS E-Services for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
BLS E-Services
3.57%
-0.12
47.71%
Sensex
-4.3%
0.44
11.83%
Quality key factors
Factor
Value
Sales Growth (5y)
85.45%
EBIT Growth (5y)
30.16%
EBIT to Interest (avg)
51.22
Debt to EBITDA (avg)
0.13
Net Debt to Equity (avg)
-0.71
Sales to Capital Employed (avg)
1.03
Tax Ratio
25.91%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
1.10%
ROCE (avg)
33.65%
ROE (avg)
11.17%
Valuation Key Factors 
Factor
Value
P/E Ratio
26
Industry P/E
21
Price to Book Value
2.87
EV to EBIT
16.20
EV to EBITDA
14.81
EV to Capital Employed
7.40
EV to Sales
1.06
PEG Ratio
2.05
Dividend Yield
0.94%
ROCE (Latest)
44.82%
ROE (Latest)
11.17%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Dow Theory
Mildly Bullish
Bearish
OBV
No Trend
No Trend
Technical Movement
12What is working for the Company
NET SALES(Q)
Highest at Rs 280.68 cr
-4What is not working for the Company
PAT(Q)
At Rs 12.65 cr has Fallen at -10.3% (vs previous 4Q average
PBT LESS OI(Q)
At Rs 14.93 cr has Fallen at -8.8% (vs previous 4Q average
EPS(Q)
Lowest at Rs 1.39
Loading Valuation Snapshot...
Here's what is working for BLS E-Services
Net Sales - Quarterly
Highest at Rs 280.68 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 280.68 cr has Grown at 27.5% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 220.15 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Here's what is not working for BLS E-Services
Profit After Tax (PAT) - Quarterly
At Rs 12.65 cr has Fallen at -10.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 14.10 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 14.93 cr has Fallen at -8.8% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 16.37 CrMOJO Watch
Near term PBT trend is negative
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs 1.39
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)