Birlasoft Limited Fundamental Analysis (BSE: BSOFT.BO)
Birlasoft Limited Fundamental Analysis (BSE: BSOFT.BO)
Birlasoft Limited (BSE: BSOFT.BO) shows moderate financial fundamentals with a PE ratio of 20.81, profit margin of 10.60%, and ROE of 15.04%. The company generates $54.0B 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 54.5/100 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
ExcellentBSOFT.BO demonstrates superior asset utilization.
Valuation Score
ExcellentBSOFT.BO trades at attractive valuation levels.
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 20.81 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BSOFT.BO's PEG of -1.56 indicates potential undervaluation.
Price to Book
The market values Birlasoft Limited at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.36 times EBITDA. This is generally considered low.
How Well Does BSOFT.BO Make Money?
Net Profit Margin
For every $100 in sales, Birlasoft Limited keeps $10.60 as profit after all expenses.
Operating Margin
Core operations generate 15.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.04 in profit for every $100 of shareholder equity.
ROA
Birlasoft Limited generates $10.88 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Birlasoft Limited generates limited operating cash flow of $5.24B, signaling weaker underlying cash strength.
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
20.81
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.29
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How BSOFT.BO Stacks Against Its Sector Peers
| Metric | BSOFT.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.81 | 35.05 | Better (Cheaper) |
| ROE | 15.04% | 699.00% | Weak |
| Net Margin | 10.60% | -137495.00% (disorted) | Strong |
| Debt/Equity | 0.03 | 0.26 | Strong (Low Leverage) |
| Current Ratio | 4.29 | 3.42 | Strong Liquidity |
| ROA | 10.88% | 249.00% | Weak |
BSOFT.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, 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