BITS

Why is BITS Ltd falling/rising?

As of 29-Jul, BITS Ltd's stock price is rising to 7.42, indicating a potential shift in market sentiment after a recent decline. However, the stock has significant long-term losses and is trading below key moving averages, reflecting ongoing challenges and decreased investor confidence.

As of 29-Jul, BITS Ltd's stock price is rising, currently at 7.42, with a change of 0.18 (2.49%) upward. This increase follows a trend reversal after three consecutive days of decline, indicating a potential shift in market sentiment. Additionally, the stock has outperformed its sector by 1.02%, suggesting that it is gaining traction relative to its peers in the IT - Software sector, which has seen an overall gain of 2.12%.<BR><BR>However, it is important to note that despite this recent rise, BITS Ltd has experienced significant declines over longer periods, with a year-to-date drop of 25.43% and a one-year decline of 28.65%. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a longer-term bearish trend. Furthermore, there has been a decrease in investor participation, with delivery volume falling by 14.44% compared to the 5-day average, which may suggest caution among investors.<BR><BR>In summary, while BITS Ltd is experiencing a short-term rise in stock price, the broader context reveals ongoing challenges and a lack of sustained investor confidence.

Which are the latest news on BITS?

Are BITS Ltd latest results good or bad?

BITS Ltd.'s latest results show strong year-on-year sales growth of 41.94%, but a 25% decline in net profit and sharply reduced operating margins indicate operational challenges, leading to a "STRONG SELL" rating for the stock.

BITS Ltd.'s latest results present a mixed picture. On one hand, the company reported a year-on-year increase in net sales of 41.94%, reaching ₹0.44 crores, which is a positive sign of growth. However, on a sequential basis, net sales only increased by 2.33%, indicating a slowdown compared to previous quarters.<BR><BR>The consolidated net profit for Q1 FY27 was ₹0.18 crores, which reflects a significant decline of 25% compared to the previous quarter. Despite this, the profit has doubled year-on-year from ₹0.09 crores in Q1 FY26, showcasing some operational improvement over a longer timeframe.<BR><BR>Operating margins have also compressed sharply, dropping to 47.73% from 62.79% in the previous quarter, which raises concerns about the company's operational efficiency. Additionally, the return on equity (ROE) remains low at 3.44%, indicating weak capital efficiency.<BR><BR>Overall, while there are some positive year-on-year growth metrics, the sequential declines in profit and margins, combined with high valuation multiples and bearish technical trends, suggest that the results are not favorable. Investors may view the current financial performance with skepticism, leading to a "STRONG SELL" rating for the stock.

Should I buy, sell or hold BITS Ltd?

When is the next results date for BITS Ltd?

The next results date for BITS Ltd is 24 July 2026.

The next results date for BITS Ltd is scheduled for 24 July 2026.

How big is BITS?

As of 10th June, BITS Ltd has a market capitalization of 92.00 Cr, with recent Net Sales of 1.47 Cr and a Net Profit of 0.72 Cr. The company reported Shareholder's Funds of 20.23 Cr and Total Assets of 20.83 Cr for the latest annual period ending in March 2025.

As of 10th June, BITS Ltd has a market capitalization of 92.00 Cr and is classified as a Micro Cap company.<BR><BR>In the latest 4 quarters, BITS Ltd reported Net Sales of 1.47 Cr and a Net Profit of 0.72 Cr.<BR><BR>For the latest annual period ending in March 2025, the company had Shareholder's Funds of 20.23 Cr and Total Assets amounting to 20.83 Cr.

Who are in the management team of BITS?

The management team of BITS includes Ankit Rathi (Chairman & Director), Omprakash Ramashankar Pathak (Managing Director), Harish Kumar Chauhan (Independent Director), Preeti Sharma (Independent Director), and Surendra Singh Tangar (Company Secretary & Compliance Officer).

The management team of BITS includes the following key members:<BR><BR>1. **Ankit Rathi** - Chairman & Director<BR>2. **Omprakash Ramashankar Pathak** - Managing Director<BR>3. **Harish Kumar Chauhan** - Independent Director<BR>4. **Preeti Sharma** - Independent Director<BR>5. **Surendra Singh Tangar** - Company Secretary & Compliance Officer<BR><BR>If you need more details about their roles or the company, feel free to ask!

Who are the peers of the BITS?

BITS' peers include Avance Tech, Virinchi, Ace Soft. Exp., Xelpmoc Design, Kati Patang Life, Icodex Publish, Cranes Software, Odyssey Tech, and Netlink Solns(I). In terms of returns, Avance Tech leads with 22.78% over one year, while BITS has -30.97%, better than Virinchi's -37.50%.

Peers: The peers of BITS are Avance Tech., Virinchi, Ace Soft. Exp., Xelpmoc Design, Kati patang Life, Icodex Publish., Cranes Software, Odyssey Tech., and Netlink Solns(I).<BR><BR>Quality Snapshot: Excellent management risk is observed at Icodex Publish., while Average management risk is found at Netlink Solns(I). Below Average management risk is noted for Avance Tech., Virinchi, Xelpmoc Design, Kati patang Life, Odyssey Tech., and BITS, and the rest. Growth ratings show Excellent at Icodex Publish., Good at Ace Soft. Exp. and Odyssey Tech., and Below Average for Avance Tech., Virinchi, Xelpmoc Design, Kati patang Life, BITS, and the rest. Capital Structure is rated Good for BITS and Odyssey Tech., while Below Average is seen at Avance Tech., Virinchi, Xelpmoc Design, Kati patang Life, and the rest.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Avance Tech. at 22.78%, while the lowest is Virinchi at -37.50%. BITS has a 1-year return of -30.97%, which is better than Virinchi but worse than Avance Tech. Additionally, the six-month return is negative for Avance Tech., Virinchi, Ace Soft. Exp., Xelpmoc Design, Kati patang Life, and Odyssey Tech.

What does BITS do?

BITS Ltd is a micro-cap software company focused on computer education, reporting net sales and profit of 0 Cr for March 2026, with a market cap of INR 92 Cr. The company has a P/E ratio of 126.00 and a return on equity of 3.44%.

Overview:<BR>BITS Ltd is a micro-cap company in the software products industry that imparts computer education under the Bureau of Information Technology Studies (BITS) banner.<BR><BR>History:<BR>BITS Ltd was formerly known as Bureau of Information Technology Services (I) Limited and was promoted by Pradeep Khanna as a division of Jukaso Silk Mills. The company underwent a name change and trademark rights transfer in December 1992, with the assignment to the company occurring in 1994. The latest quarterly results reported net sales and net profit of 0 Cr for March 2026.<BR><BR>Financial Snapshot:<BR>Most recent Net Sales: 0 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 0 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 92 Cr (Micro Cap)<BR><BR>Key Metrics:<BR>P/E: 126.00 <BR>Industry P/E: 20 <BR>Dividend Yield: 0.00% <BR>Debt Equity: -0.04 <BR>Return on Equity: 3.44% <BR>Price to Book: 4.40 <BR><BR>Contact Details:<BR>Address: 711 7th Flr, No 27 Barakhamba Road New Delhi New Delhi : 110001 <BR>Tel: 91-011-23243611/23243599 <BR>Email: bitsltd@gmail.com <BR>Website: http://www.bits.net.in

How has been the historical performance of BITS?

BITS has shown fluctuating historical performance, with net sales increasing from 0.55 Cr in Mar'21 to 1.13 Cr in Mar'25, and a recovery in profitability, achieving a profit before tax of 0.21 Cr in Mar'25. Improved cost management is evident as total expenditure decreased, while cash flow from operating activities significantly rose to 6.00 Cr in Mar'25.

Answer:<BR>The historical performance of BITS shows a fluctuating trend in net sales and profitability over the years.<BR><BR>Breakdown:<BR>BITS has experienced a gradual increase in net sales from 0.55 Cr in Mar'21 to 1.13 Cr in Mar'25, with a notable peak of 1.87 Cr in Mar'10 and a decline to 0.74 Cr in Mar'22. The total operating income has followed a similar trajectory, reaching 1.13 Cr in Mar'25. However, the total expenditure, excluding depreciation, has decreased from 2.23 Cr in Mar'10 to 0.80 Cr in Mar'25, indicating improved cost management. Operating profit, excluding other income, has shown a significant recovery, moving from a loss of 0.36 Cr in Mar'10 to a profit of 0.33 Cr in Mar'25. The profit before tax has also improved, reaching 0.21 Cr in Mar'25, while profit after tax has increased to 0.21 Cr from a loss of 0.07 Cr in Mar'21. The earnings per share (EPS) have fluctuated, with a rise to 0.02 in Mar'25 from 0.0 in Mar'23. The company's total assets have increased to 20.83 Cr in Mar'25, up from 18.11 Cr in Mar'23, while total liabilities have also risen to 20.83 Cr in Mar'25. Cash flow from operating activities has improved significantly, reaching 6.00 Cr in Mar'25, reflecting a positive change in working capital. Overall, BITS has shown signs of recovery and growth in recent years, particularly in sales and profitability metrics.

Who are the top shareholders of the BITS?

The top shareholder of BITS is Vizwise Commerce Private Limited, holding 65.07% of the shares, with individual investors owning 33.21%. There are no pledged promoter holdings, and no foreign institutional investors are involved.

The top shareholders of BITS are primarily its promoters, with Vizwise Commerce Private Limited holding the largest share at 65.07%. There are no pledged promoter holdings, and individual investors collectively hold 33.21% of the shares. Additionally, there are four mutual fund schemes that hold a very small percentage (0.03%), but there are no foreign institutional investors (FIIs) involved. Overall, the majority of the company's shares are held by its promoters.

Is BITS overvalued or undervalued?

As of May 31, 2024, BITS is considered very expensive and overvalued with a PE ratio of 120.04 and an EV to EBITDA of 119.91, significantly higher than its peers TCS and Infosys, despite a strong 1-year stock return of 240.18%.

As of 31 May 2024, the valuation grade for BITS has moved from does not qualify to very expensive. The company is considered overvalued based on its high valuation metrics. The PE ratio stands at 120.04, while the EV to EBITDA ratio is also at 119.91, indicating a significant premium compared to industry standards. Additionally, the Price to Book Value ratio is 5.93, further emphasizing the overvaluation.<BR><BR>In comparison to its peers, BITS' valuation metrics starkly contrast with TCS, which has a PE ratio of 25.23 and an EV to EBITDA of 17.63, and Infosys, with a PE of 24.32 and an EV to EBITDA of 15.83. The disparity in these ratios highlights that BITS is trading at a much higher valuation than its more established competitors. Despite a remarkable 1-year stock return of 240.18%, which outpaces the Sensex's 7.62%, the current valuation suggests that BITS may not sustain such high performance in the long term given its elevated price levels.

What is the technical trend for BITS?

As of June 6, 2025, BITS shows a mildly bearish trend, indicated by bearish weekly MACD, daily moving averages, and Dow Theory, despite some bullish signals on the monthly chart.

As of 6 June 2025, the technical trend for BITS has changed from bearish to mildly bearish. The weekly MACD remains bearish, while the monthly MACD shows a mildly bearish stance. The daily moving averages indicate a bearish trend. Bollinger Bands reflect a mildly bearish outlook on the weekly chart but are bullish on the monthly. The KST is mildly bullish weekly but mildly bearish monthly, and Dow Theory supports a mildly bearish view for both weekly and monthly time frames. Overall, the current technical stance is mildly bearish, with key indicators being the bearish MACD and daily moving averages.

Has BITS declared dividend?

No Dividend History Available