BLS E-Services Limited

Industrials — Specialty Business Services · NSE

₹146.40−₹3.10 (−2.07%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

The 60-second version of BLS E-Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

BLS E-Services Limited, a technology enabled digital service company, provides assisted E-services and E-governance services in India.

IndustrySpecialty Business Services

SectorIndustrials

Employees1,900

Annual revenue₹1,118 Cr

How does it make money?

Turns over ₹1,118 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 1,900 employees supports ₹58.8 lakh of revenue a year, the signature of a people-led business.

EBITDA margin8.2%

Net margin5.1%

Revenue / employee₹58.8 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

What is its competitive advantage?Some evidence

ROCE of 16.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE16.3%

ROE11.0%

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +360% while net margin moved -34% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+360%

Margin effect-34%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 45.7x is demanding — it needs sustained high growth to justify
✗ P/E is 99% above its own historical median of 23.0x — expensive by its own standards
✗ P/B of 5.10x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

45.7x

3Y Median

23.0x

34 monthly readings · mean 28.8x · range 12.7x–88.9x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 99% above its 3y median of 23.0x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 49% below the peer median of 88.8x.

vs. its own history

Expensive

23.0x median over 34 months · +99%

vs. sector peers

Cheap

88.8x median of 3 peers · -49%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

45.7x

P/B

5.10x

EV/EBITDA

28.2x

PEG

1.02

Dividend Yield

0.34%

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 50% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 15.0% to 8.2% over 3 years.
Return on equity is falling
ROE has dropped from 17.7% to 11.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 26.6% to 16.3% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 625% against revenue growth of 360% — customers are taking longer to pay.
Valuation above its historical average
At 45.7x the stock trades 99% above its own median of 23.0x.

Red Flags

3 items require attention · 3 high

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.8 points, from 15.0% to 8.2%.
🔴Receivables growing faster than salesFinancial
Receivables up 625% against revenue up 360% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 49% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 15.0% to 8.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 625% against revenue up 360%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 99% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 17.7% to 11.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 50% a year✓ 66.3% CAGR
Latest reported year was 24.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹42 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 5 neutral · 2 weak

Market Cap

₹2,657 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

45.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.10x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹3.2

Profitable

Profitable on a per-share basis

ROE

11.0%

Moderate

Moderate capital efficiency

ROCE

16.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.08x

Moderate

Moderate leverage

Revenue Growth (YoY)

24.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.7%

Modest

Slow profit growth

Dividend Yield

0.34%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹42 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹146.4

Operating Margin

6.5%

Average

Average margins

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

2.85

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.05

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

157.2 / 158.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

30.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹243 Cr	₹301 Cr	₹519 Cr	₹1,118 Cr	+66.3%
EBITDA	₹36 Cr	₹50 Cr	₹83 Cr	₹91 Cr	+36.0%
EBITDA Margin	15.0%	16.5%	16.0%	8.2%	—
PAT (Net Profit)	₹19 Cr	₹31 Cr	₹53 Cr	₹57 Cr	+44.9%
EPS	₹2.08	₹4.44	₹5.79	₹6.33	+45.0%
ROE	17.7%	7.3%	10.9%	11.0%	—
ROCE	26.6%	10.5%	15.2%	16.3%	—
Total Debt	₹5 Cr	₹7 Cr	₹7 Cr	₹6 Cr	+5.8%
Free Cash Flow	₹28 Cr	₹15 Cr	₹54 Cr	₹42 Cr	+14.4%

🟢 Revenue has grown at 66.3% a year over 3 years.

🟢 EBITDA has grown at 36.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 15.0% to 8.2% over 3 years (-6.8 pts).

🟢 PAT (Net Profit) has grown at 44.9% a year over 3 years.

🟢 EPS has grown at 45.0% a year over 3 years.

🔴 ROE has fallen from 17.7% to 11.0% over 3 years (-6.7 pts).

🔴 ROCE has fallen from 26.6% to 16.3% over 3 years (-10.4 pts).

🔴 Total Debt has grown at 5.8% a year over 3 years.

🟢 Free Cash Flow has grown at 14.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹762 Cr

Total Liabilities

₹192 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹88 Cr

Operating Cash Flow

₹51 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.9%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

08 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

1 mixed5 general

Here's Why We Think BLS E-Services (NSE:BLSE) Might Deserve Your Attention Today

Simply Wall Street, 02 Jul

BLS International Acquires Additional Stake In Subsidiary BLS E-Services

Sahi, 20 Aug

BLS E-Services (BLSE.NS) Edges Up 1.63% to ₹162.2, Holding Above ₹154 Support - SuperTrend

siam.in, 05 Oct

BLS E-Services Share Price Near 52-Week High, Rs 327.25

Univest, 22 Sept

BLS E-Services jumps 8% to hit 52-week high on ₹157 cr Atyati acquisition

Business Standard, 03 JulM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Compare with

Equitymaster, 15 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟢Financial HealthStrong15.2/20

🟡GrowthModest12.9/20

🔴ProfitabilityWeak6/15

🔴ValuationDemanding3.3/15

🟡RiskModerate5.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 50% a year66.3% CAGR
✓EBITDA margin holds above 6%8.2%
✓Free cash flow remains positive₹42 Cr
✓Debt / EBITDA stays below 2x0.1x
✓ROCE stays above 13%16.3%