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SIS Ltd

NSE: SIS BSE: 540673

305.30

(1.13%)

Tue, 03 Mar 2026, 00:16 pm

SIS Analysis

dividend

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Pros

  • Dividends paid are thoroughly covered by earnings (8.8x coverage).
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7x coverage).
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Cons

  • Security and Intelligence Services (India) has only been paying a dividend for 2 years, and since then there has been no growth.
  • Security and Intelligence Services (India) has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Security and Intelligence Services (India)'s pays a lower dividend yield than the bottom 25% of dividend payers in India (0.76%).
  • Security and Intelligence Services (India)'s dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Cash flow for Security and Intelligence Services (India) is expected to increase by more than 50% in 2 years time.
  • Security and Intelligence Services (India)'s earnings are expected to grow significantly at over 20% yearly.
  • Security and Intelligence Services (India)'s earnings growth is expected to exceed the India market average.
  • Security and Intelligence Services (India)'s earnings growth is expected to exceed the low risk savings rate of 7.2%.
  • Security and Intelligence Services (India)'s earnings are expected to increase by more than the low risk growth rate in 3 years time.
  • Performance (ROE) is expected to be above the current IN Commercial Services industry average.
  • An improvement in Security and Intelligence Services (India)'s performance (ROE) is expected over the next 3 years.
  • Security and Intelligence Services (India)'s revenue growth is expected to exceed the India market average.
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Cons

  • Security and Intelligence Services (India)'s earnings are expected to decrease over the next year.
  • Security and Intelligence Services (India)'s net income is expected to increase but not above the 50% threshold in 2 years time.
  • Security and Intelligence Services (India) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • Security and Intelligence Services (India)'s revenue is expected to increase but not above the 50% threshold in 2 years time.
  • Security and Intelligence Services (India)'s revenue is expected to grow by 9.1% yearly, however this is not considered high growth (20% yearly).

health

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Pros

  • Security and Intelligence Services (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Security and Intelligence Services (India) is profitable, therefore cash runway is not a concern.
  • Security and Intelligence Services (India) is profitable, therefore cash runway is not a concern.
  • Debt is covered by short term assets, assets are 2x debt.
  • Security and Intelligence Services (India)'s cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (84.8% vs 84.4% today).
  • Low level of unsold assets.
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Cons

  • Debt is not well covered by operating cash flow (17.2%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.6x annual interest expense, ideally 3x coverage).
  • Security and Intelligence Services (India)'s level of debt (84.4%) compared to net worth is high (greater than 40%).

management

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Pros

  • The tenure for the Security and Intelligence Services (India) board of directors is about average.
  • Rituraj's remuneration is lower than average for companies of similar size in India.
  • Rituraj's compensation has been consistent with company performance over the past year, both up more than 20%.
  • The tenure for the Security and Intelligence Services (India) management team is about average.
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Cons

    misc

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    Pros

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      Cons

      • Security and Intelligence Services (India) has significant price volatility in the past 3 months.

      past

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      Pros

      • Security and Intelligence Services (India) has delivered over 20% year on year earnings growth in the past 5 years.
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      Cons

      • Security and Intelligence Services (India)'s 1-year earnings growth is less than its 5-year average (4.3% vs 28.9%)
      • Security and Intelligence Services (India) used its assets less efficiently than the IN Commercial Services industry average last year based on Return on Assets.
      • Security and Intelligence Services (India)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
      • Security and Intelligence Services (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
      • Security and Intelligence Services (India)'s earnings growth has not exceeded the IN Commercial Services industry average in the past year (4.3% vs 35.9%).

      value

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      Pros

      • 540673 outperformed the Commercial Services industry which returned -31.6% over the past year.
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      Cons

      • Security and Intelligence Services (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
      • Security and Intelligence Services (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
      • Security and Intelligence Services (India) is overvalued based on assets compared to the IN Commercial Services industry average.
      • Security and Intelligence Services (India) is poor value based on expected growth next year.
      • Security and Intelligence Services (India) is overvalued based on earnings compared to the IN Commercial Services industry average.
      • Security and Intelligence Services (India) is overvalued based on earnings compared to the India market.
      • 540673 underperformed the Market in India which returned -14.5% over the past year.
      • BSE:540673 is down -1.9% underperforming the Commercial Services industry which returned 5.9% over the past month.
      • BSE:540673 is down -1.9% underperforming the market in India which returned 8% over the past month.

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      Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800