Birlasoft Ltd (BSOFT)

FairStock Score: 72/100 — STEADY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹384.70, Birlasoft is not a bargain. Graham said price is what you pay, value is what you get. Here the Graham Number is ₹216.63 and the DCF intrinsic value is ₹244.64, both meaningfully below the current market price. The indicated margin of safety is deeply negative, so I cannot justify deploying capital today. The balance sheet does have virtues: debt/equity is just 0.04, Altman Z-Score is 4.00, and ROCE is 20.95%. Promoter holding of 40.51% is reassuring, and the Piotroski F-score of 7/9 suggests the company is not financially fragile. Free cash flow of ₹150 Cr is positive, but against a ₹10,904 Cr market cap it is modest. The problem is growth: sales fell 2.63% and profit fell 19.18%. Latest quarter net profit of ₹120 Cr on sales of ₹1,348 Cr translates into only about 8.9% net margin. ROE of 13.36% is decent but not outstanding. At P/E of 22.34 and P/B of 3.09, the market is still paying a growth premium while the business shrinks. The 1.67% dividend gives some comfort, but the negative EV/EBITDA makes me want to examine earnings quality more closely. The FairStock score of 44/100 calls it mixed, and I agree. This is a cyclical software-services business at an unattractive price. Even a decent business with low debt cannot excite me without margin of safety. I will wait for a lower price or demonstrable revival in growth before acting.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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