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 (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
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
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
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 Holding||Foreign Institution|
|Other Domestic Institutions||Retail & Others|
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.
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