scorecardresearchOver 1000% returns in 3 years! This small-cap stock has delivered gains for 10 out of 11 months in 2022

Over 1000% returns in 3 years! This small-cap stock has delivered gains for 10 out of 11 months in 2022

Updated: 21 Dec 2022, 01:08 PM IST
TL;DR.
BLS International Services is a small-cap stock with a market cap of 8,080 crore. In the last three years, the stock has risen from 16.4 per share to the current level of 199, generating an extraordinary return of 1,113 percent.
In the recent September quarter, the company posted an 83.27% rise in its consolidated net profit to  <span class='webrupee'>₹</span>50.4 crore, compared to a net profit of  <span class='webrupee'>₹</span>27.5 crore in the corresponding quarter of the last fiscal.

In the recent September quarter, the company posted an 83.27% rise in its consolidated net profit to 50.4 crore, compared to a net profit of 27.5 crore in the corresponding quarter of the last fiscal.

Amid the rally in the Indian market, many stocks have delivered multi-bagger returns in 2022. BLS International Services, a provider of technology-enabled services, is one such stock. 

The stock began its journey around Rs. 47.23 apiece in 2022 and surged 342 percent to hit an all-time high of Rs. 208.90 on December 14. YTD, the stock has risen 314 percent.

Out of the last eleven months, the stock recorded 10 months with positive gains, with April being the best month with a rally of 53.67 percent, followed by July with 25.38 percent returns.

On December 15, the stock surpassed the $1 billion market capitalisation threshold.

In the last three years, the stock has risen from 16.4 per share to the current level of 199, generating an extraordinary return of 1,113 percent, while in the last five years, it has rewarded shareholders with a return of nearly 300 percent.

The company has given 2 bonuses since May 13, 2022. The last Bonus that BLS International Services Ltd. announced was in the ratio 1:1 with an ex-date of Dec. 8, 2022.

BLS International Services has a market cap of 8,080 crore. The company is engaged in the business of providing outsourcing and administrative tasks of visa, passport, and consular services to various diplomatic missions across the world. 

It also provides citizen services to state and provincial governments across Asia, Africa, Europe, South America, North America, and the Middle East.

The company partners with 46 client governments in the provision of outsourced visa and passport, front end and citizen, consular and passport, verification and attestation, and e-visa services, its website shows.

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Stock price chart of BLS International Services.

The net profit of the company has been growing consistently for the last eight quarters. 

In the recent September quarter, the company posted an 83.27 percent rise in its consolidated net profit to 50.4 crore, compared to a net profit of 27.5 crore in the corresponding quarter of the last fiscal.

Revenue from operations increased by 87.36 percent YoY to 356.84 crore in Q2 from 190.46 crore in the previous quarter, driven by the continued strong recovery in visa and consular business.

The operating profit surged to 56.8 crore from 27.6 crore in Q2 FY22. The company reported its best EBITDA margin of 15.92 percent, up 145 basis points (bps) year on year.

On the expense front, the company reported a nearly 84 percent YoY increase in total expenditure of 300 crore, primarily due to an increase in employee costs as a result of the addition of the ZMPL workforce and increments granted during the period.

For FY22, the company posted a consolidated net profit of 114 crore, a growth of 137.5 percent when compared to a net profit of 48.4 crore in FY21.

According to Trendlyne data, the company has zero debt. It has an RoE and RoCE of 19.52 percent and 19.79 percent, respectively, for the financial year ending 2022.

The promoters own 74.4 percent of the shares in the company, while foreign portfolio investors and domestic institutional investors each own 6.7 percent and 0.1 percent, respectively. Regular shareholders own 18.6 percent.

1 analyst polled by MintGenie has a ‘hold’ call on the stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 21 Dec 2022, 01:08 PM IST