BLS Internat. (BLS)

FairStock Score: 95/100 — HIGH CONVICTION

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 37.21% and ROCE of 33.62% indicate exceptional capital efficiency.
• Low leverage: debt/equity of only 0.21, with promoter holding at a strong 70.39%.
• Robust growth: sales up 47.64% and profits up 41.91%; latest quarter net profit ₹170 Cr on sales ₹736 Cr.
• Piotroski F-Score 8/9 and Altman Z-Score 5.01 point to solid financial health.
• PEG of 0.71 suggests the growth is not excessively priced at the current P/E of 17.82.

Concerns

• Free cash flow is negative at ₹-290 Cr, showing reported profits are not converting into cash.
• Graham Number of ₹121.74 is far below the price of ₹283.15, leaving no margin of safety.
• EV/EBITDA of -30.32 implies negative EBITDA despite positive net profit, which requires explanation.
• P/B of 6.74 and dividend yield of only 0.72% leave little room for valuation support.

AI Analysis

BLS Internat is a fundamentally strong travel-related enterprise, but the numbers force me to separate the business from the price. The high return profile stands out: ROE of 37.21% and ROCE of 33.62% are extraordinary, and with debt/equity at only 0.21 the balance sheet is not stretched. Add promoter holding of 70.39% and a Piotroski score of 8/9, and this looks like a well-run operator. The growth is real too: sales up 47.64% and profits up 41.91%, with latest quarter net profit ₹170 Cr on sales ₹736 Cr. At a P/E of 17.82 and PEG of 0.71, the market is paying a reasonable multiple for that growth. Yet I cannot ignore the contradictions. Free cash flow is minus ₹290 Cr — an outright negative number. A company can report accounting profits and still destroy value if cash doesn't follow earnings. The negative EV/EBITDA is another warning; despite positive net profit, EBITDA itself appears negative, which in a travel company could be due to one-offs or accounting classification, but the burden is on management to explain. Book value is ₹42.04 while the shares trade at ₹283.15, a P/B of 6.74. Graham's number of ₹121.74 is far below the current price, so there is no margin of safety as he would define it. Dividend yield of 0.72% is negligible. The Altman Z-score of 5.01 suggests no imminent bankruptcy risk, but valuation depends on sustained high growth. A 95/100 conviction score feels momentum-biased; my own checklist would demand a better entry price or at least clearer proof that cash conversion improves. In short, excellent business, questionable price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer