NSB BPO Solutions Limited

Industrials — Specialty Business Services · BSE

₹35.77+₹3.25 (+9.99%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

NSB BPO Solutions Limited engages in the business of providing Business Process Outsourcing (BPO) services specializing support services solutions in India.

IndustrySpecialty Business Services

SectorIndustrials

Employees1,785

Annual revenue₹160 Cr

How does it make money?

Turns over ₹160 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 1,785 employees supports ₹9.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin12.2%

Net margin8.0%

Revenue / employee₹9.0 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?Little sign of one

Returns on capital of 7.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE7.2%

ROE7.3%

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -44% while net margin moved +931% 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-44%

Margin effect+931%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

88/ 100

Cheap

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

5.6x

1.2Y Median

13.2x

14 monthly readings · mean 13.0x · range 6.5x–20.0x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 58% below its 1.2y median of 13.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 94% below the peer median of 88.8x.

vs. its own history

Cheap

13.2x median over 14 months · -58%

vs. sector peers

Cheap

88.8x median of 3 peers · -94%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

5.6x

P/B

0.33x

EV/EBITDA

3.7x

PEG

0.07

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 4.0% to 12.2% over 3 years.
Debt is being paid down
Total debt is down 77% over 3 years.
Return on equity is rising
ROE has improved from 1.8% to 6.0%.
Return on capital is rising
ROCE has improved from 3.4% to 7.2%.
Valuation below its historical average
At 5.6x the stock trades 58% below its own median of 13.2x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 110% against revenue growth of -44% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 4.55x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 110% against revenue up -44% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹37 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 4.0% to 12.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 77% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 58% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 94% 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?

Leverage amplifies any setback
Debt/Equity of 4.55x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 110% against revenue up -44%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹37 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✗ 7.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 6.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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 · 2 neutral · 5 weak

Market Cap

₹71 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.6x

Cheap

Cheap against the generic band

P/B Ratio

0.33x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.41

Profitable

Profitable on a per-share basis

ROE

7.3%

Weak

Weak capital efficiency

ROCE

7.2%

Weak

Low return on total capital employed

Debt/Equity

4.55x

High

High leverage

Revenue Growth (YoY)

29.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-39.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹44 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹35.77

ROA

4.7%

Average

Average asset productivity

Operating Margin

8.9%

Average

Average margins

Net Margin

8.0%

Average

Average bottom-line conversion

Current Ratio

7.61

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

54.6 / 60.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

10.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹285 Cr	₹128 Cr	₹138 Cr	₹160 Cr	-17.5%
EBITDA	₹12 Cr	₹13 Cr	₹19 Cr	₹20 Cr	+19.2%
EBITDA Margin	4.0%	10.0%	13.6%	12.2%	—
PAT (Net Profit)	₹2 Cr	₹7 Cr	₹11 Cr	₹13 Cr	+79.6%
EPS	₹1.11	₹3.37	₹5.53	—	—
ROE	1.8%	6.4%	7.9%	6.0%	—
ROCE	3.4%	8.4%	10.3%	7.2%	—
Total Debt	₹41 Cr	₹28 Cr	₹24 Cr	₹10 Cr	-38.4%
Free Cash Flow	₹12 Cr	₹5 Cr	-₹16 Cr	-₹37 Cr	—

🔴 Revenue has shrunk at 17.5% a year over 3 years.

🟢 EBITDA has grown at 19.2% a year over 3 years.

🟢 EBITDA Margin has risen from 4.0% to 12.2% over 3 years (+8.1 pts).

🟢 PAT (Net Profit) has grown at 79.6% a year over 3 years.

🟢 ROE has risen from 1.8% to 6.0% over 3 years (+4.2 pts).

🟢 ROCE has risen from 3.4% to 7.2% over 3 years (+3.7 pts).

🟢 Total Debt has shrunk at 38.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹12 Cr to -₹37 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹232 Cr

Total Liabilities

₹19 Cr

Total Debt

₹10 Cr

Cash & Equivalents

₹9 Cr

Operating Cash Flow

-₹23 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

55.6%

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

6 general

NSB BPO Solutions passes all AGM resolutions including ₹150 crore borrowing cap

scanx.trade, 02 Oct

NSB BPO Solutions Limited Share Price

Upstox, 05 May

TRANSCOR Stock Price and Chart — NSE:TRANSCOR

TradingView, 17 Aug

NSB BPO Solutions appoints Dr. Abhiraj Singh Rana as independent director

scanx.trade, 17 Aug

NSB BPO Solutions Ltd. Share Price Live Today

CNBC TV18, 10 Oct

NSB BPO Solutions (BSE:544571) - Stock Analysis

Simply Wall Street, 10 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🟡Financial HealthAdequate11.9/20

🟡GrowthModest10.5/20

🟡ProfitabilityModerate8.3/15

🟢ValuationAttractive13.2/15

🔴RiskHigh2.5/10

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

✓EBITDA margin holds above 10%12.2%
✗Free cash flow remains positive-₹37 Cr
✓Debt / EBITDA stays below 2x0.5x
✗ROCE stays above 8%7.2%
✓Interest cover stays above 4x6.2x