Team Lease Serv. (TEAMLEASE)

FairStock Score: 35/100 — MIXED

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

Key Financials

Strengths

• Low debt with Debt/Equity of only 0.13, indicating a conservatively financed balance sheet.
• Piotroski F-Score of 7/9 reflects solid financial health across profitability, leverage, and efficiency metrics.
• Reasonable valuation at P/E of 15.07 and PEG of 0.45, assuming the recent profit growth is sustainable.
• Attractive profit growth of 64.26% in the latest year, suggesting operating leverage or cost control is working.

Concerns

• Sales growth is weak at just 3.14%, making the 64.26% profit growth look potentially unsustainable or non-recurring.
• No dividend means shareholders rely entirely on reinvestment and future capital appreciation.
• Promoter holding of 31.11% is modest, raising questions about alignment with minority shareholders.
• P/B of 2.52 is not cheap for a slow-growing services business with moderate ROE of 11.90%.

AI Analysis

Team Lease is the kind of business I would call 'moderately good' rather than wonderful. The balance sheet is clean, with debt-equity of only 0.13, and the Piotroski F-Score of 7 out of 9 tells me the company is financially sound. That matters, because in a low-margin staffing and commercial services business, financial troubles can destroy value quickly. Return on equity of 11.90% and ROCE of 12.67% are acceptable but hardly exceptional. They do not signal a wide moat. The real red flag for me is the topline: sales grew only 3.14% over the year, while net profit jumped 64.26%. A value investor must be suspicious of profit growth that far outruns revenue growth. It could be cost discipline or a one-time gain, but it is not compounding from growing demand. At ₹1,243.70, the P/E is 15.07 and the P/B 2.52. That is not demanding if the profit growth is sustainable, and the PEG of 0.45 looks attractive, but low revenue growth makes me cautious. There is no dividend, so the investor depends entirely on management's ability to reinvest and create value. With promoter holding at just 31.11%, I have less comfort about long-term alignment than I would like. The share trades well below its 52-week high of ₹1,944.30, and near the lower end of its range; the market is clearly not enthusiastic. I would not label Team Lease a fast grower or a stalwart. It is a slow grower with a decent balance sheet, being offered at a reasonable price. But 'reasonable' is not enough — I want a margin of safety, especially when revenue growth is weak and profit growth needs proof. I would watch the next few quarters closely before making a decision.

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