Best Stocks to Buy in India for Short term – Birlasoft Ltd

Our 41th company in the Series of Best Stocks to Buy in India for Short term 2023 is Birlasoft Ltd.

This company is good for investing purpose or not ?

Let’s start with the Company profile

Company Profile :

Birlasoft Limited is a technology company engaged in computer programming, consultancy and related activities.

Now Let’s check the important fundamental figures of this company. This is a mid cap company with Market Cap ₹8,018cr. We can check more fundamental details below in depth:

Company Fundamental Detail :

PE Ratio: 17.29

Sector PE Ratio: 26.06

PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.

PB Ratio : 3.10

Sector PB Ratio : 7.22

PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.

Dividend Yield :1.57%

Sector Dividend Yield : 1.86%

Dividend Yield of this company is low than Sector. Dividend of this is Average than the peers of this company.

ROE: 18.63%

ROCE: 23.72%

ROE (Return on equity) and ROCE (Return on capital equity) is Good.

According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:

Company Financial Detail

YearRevenue(cr.)Profit(cr.)
20224,196.55463.63
20213,574.70320.83
20203,333.96224.35
20192,651.09289.48

We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2022  2021 2020  2019
800.32814.50794.90784.04

Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2022 ,Company have 800.32Cr. debt.

Let’s check the Free Cash flow of the company

Free Cash flow

2022  2021 2020  2019
216.86532.97255.55-161.42

Debt Level: BSOFT is debt free.

Reducing Debt: BSOFT has no debt compared to 5 years ago when its debt to equity ratio was 18.6%.

Debt Coverage: BSOFT has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: BSOFT has no debt, therefore coverage of interest payments is not a concern.

Share Holding Pattern

Promotor HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 2022 41.48%12.95%18.22% 1.65%25.71%
Mar 2022 40.32%15.24% 18.24% 2.88%23.32%
Dec 2021 40.40%15.41%19.49%3.17% 21.53%
Sep 2021 40.55%17.39%18.30%3.06%20.70%

Above table showing there is no big change in Promotor Holding which is 41.48% in June 2022. FIIs invested in June 2022 with 12.95% and retail investor is 25.71% .

Investment Checklist for Birlasoft Ltd.

  • The company is currently profitable
  • Significant insider selling over the past 3 months
  • Earnings are forecast to grow by an average of 16.5% per year for the next 3 years
  • They are debt free
  • Share price has been stable over the past 3 months
  • The company’s earnings are high quality
  • Profit margins improved or BSOFT became profitable
  • They have sufficient analyst coverage
  • Shareholders have not been meaningfully diluted in the past year or recently listed
  • Revenue is meaningful (₹45B)
  • Market cap is meaningful (₹80B)
  • BSOFT does not have negative shareholders equity.

According to its historical performance we can predict stock target.

Entry Buying Zone : Premium members can see only

Target: Premium members can see only

Time Horizon:Premium members can see only

Risk Profile: Premium members can see only

Hope you liked Our 41th company in the Series of Best stocks to buy in India for short term 2023. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss.

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