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Birlasoft Ltd logo

Birlasoft Ltd

NSE: BSOFT BSE: 532400

381.90

(-0.82%)

Thu, 12 Mar 2026, 06:14 am

Birlasoft Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (4.1x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Birlasoft's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Birlasoft's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Birlasoft's earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Performance (ROE) is expected to be above the current IN Software industry average.
  • An improvement in Birlasoft's performance (ROE) is expected over the next 3 years.
  • Birlasoft's revenue growth is expected to exceed the India market average.
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Cons

  • Cash flow for Birlasoft is expected to increase but not above the 50% threshold in 2 years time.
  • Birlasoft's earnings are expected to grow by 11% yearly, however this is not considered high growth (20% yearly).
  • Birlasoft's earnings growth is positive but not above the India market average.
  • Birlasoft's earnings are expected to increase but not above the low risk growth rate next year.
  • Birlasoft's net income is expected to increase but not above the 50% threshold in 2 years time.
  • Birlasoft is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Birlasoft's revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Birlasoft's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Birlasoft is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Birlasoft is profitable, therefore cash runway is not a concern.
  • Birlasoft is profitable, therefore cash runway is not a concern.
  • Birlasoft has no debt, it does not need to be covered by operating cash flow.
  • Birlasoft has no debt, it does not need to be covered by short term assets.
  • Birlasoft's cash and other short term assets cover its long term commitments.
  • Birlasoft has no debt compared to 5 years ago when it was 38.6%.
  • Birlasoft has no debt, therefore coverage of interest payments is not a concern.
  • Birlasoft has no debt.
  • Low level of unsold assets.
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Cons

    management

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    Pros

    • The tenure for the Birlasoft management team is about average.
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    Cons

    • The average tenure for the Birlasoft board of directors is less than 3 years, this suggests a new board.

    misc

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    Pros

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      Cons

      • Birlasoft is covered by less than 3 analysts.
      • Birlasoft has significant price volatility in the past 3 months.

      past

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      Pros

      • Birlasoft used its assets more efficiently than the IN Software industry average last year based on Return on Assets.
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      Cons

      • Birlasoft's 1-year earnings growth is negative, it can't be compared to the 5-year average.
      • Birlasoft's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
      • Birlasoft's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Birlasoft has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Birlasoft's 1-year earnings growth is negative, it can't be compared to the IN Software industry average.

      value

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      Pros

      • Birlasoft's share price is below the future cash flow value, and at a moderate discount (> 20%).
      • Birlasoft is good value based on expected growth next year.
      • Birlasoft is good value based on earnings compared to the India market.
      • 532400 outperformed the Software industry which returned -27.7% over the past year.
      • 532400 outperformed the Market in India which returned -14.5% over the past year.
      • BSE:532400 is up 14.3% outperforming the Software industry which returned 11.5% over the past month.
      • BSE:532400 is up 14.3% outperforming the market in India which returned 8% over the past month.
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      Cons

      • Birlasoft's share price is below the future cash flow value, but not at a substantial discount (< 40%).
      • Birlasoft is overvalued based on assets compared to the IN Software industry average.
      • Birlasoft is overvalued based on earnings compared to the IN Software industry average.

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