Birlasoft Limited
Birlasoft Limited Fundamental Analysis
Birlasoft Limited (BSOFT.BO) shows weak financial fundamentals with a PE ratio of 21.87, profit margin of 8.80%, and ROE of 12.73%. The company generates $52.7B in annual revenue with weak year-over-year growth of 1.84%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BSOFT.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakBSOFT.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateBSOFT.BO shows balanced valuation metrics.
Growth Score
WeakBSOFT.BO faces weak or negative growth trends.
Financial Health Score
ExcellentBSOFT.BO maintains a strong and stable balance sheet.
Profitability Score
WeakBSOFT.BO struggles to sustain strong margins.
Key Financial Metrics
Is BSOFT.BO Expensive or Cheap?
P/E Ratio
BSOFT.BO trades at 21.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BSOFT.BO's PEG of 45.30 indicates potential overvaluation.
Price to Book
The market values Birlasoft Limited at 2.67 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.31 times EBITDA. This signals the market has high growth expectations.
How Well Does BSOFT.BO Make Money?
Net Profit Margin
For every $100 in sales, Birlasoft Limited keeps $8.80 as profit after all expenses.
Operating Margin
Core operations generate 13.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.73 in profit for every $100 of shareholder equity.
ROA
Birlasoft Limited generates $9.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Birlasoft Limited produces operating cash flow of $5.55B, showing steady but balanced cash generation.
Free Cash Flow
Birlasoft Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
BSOFT.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
45.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.67
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How BSOFT.BO Stacks Against Its Sector Peers
| Metric | BSOFT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.87 | 34.49 | Better (Cheaper) |
| ROE | 12.73% | 1124.00% | Weak |
| Net Margin | 8.80% | -133673.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 7.86 | Strong (Low Leverage) |
| Current Ratio | 4.01 | 5.81 | Strong Liquidity |
| ROA | 9.42% | -308769.00% (disorted) | Weak |
BSOFT.BO outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Birlasoft Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
62.29%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
128.86%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
97.73%
Industry Style: Growth, Innovation, High Beta
High Growth