BITS

Why is BITS Ltd falling/rising?

As of 27-Jun, BITS Ltd's stock price is at 7.97, down 0.38%, with a year-to-date decline of 19.90% and a one-year drop of 22.47%. Weak fundamentals and declining investor interest suggest a bearish trend and contribute to the stock's poor performance.

As of 27-Jun, BITS Ltd's stock price is currently at 7.97, reflecting a decrease of 0.03 or 0.38%. The stock has been underperforming in the long term, with a year-to-date decline of 19.90% and a one-year drop of 22.47%. This poor performance is compounded by weak fundamental indicators, including a low return on equity (ROE) of 3.73% and a concerning EBIT to Interest ratio of 0.07, indicating difficulties in servicing debt.<BR><BR>Despite a slight outperformance against its sector today, where it gained 0.75% over the last two days, the stock is trading below all its moving averages, suggesting a bearish trend. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 31.68% compared to the five-day average. This decline in trading activity further indicates a lack of confidence among investors.<BR><BR>Overall, the combination of weak financial fundamentals, poor long-term growth prospects, and declining investor interest contributes to the stock's falling price.

Which are the latest news on BITS?

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

Should I buy, sell or hold BITS Ltd?

Are BITS Ltd latest results good or bad?

BITS Ltd's latest results show strong year-on-year growth with a 200% increase in net profit and a 43.33% rise in revenue, but a 14.29% decline in profit from the previous quarter and a high P/E ratio of 177 raise concerns about sustainability and valuation. Investors should approach with caution.

BITS Ltd's latest results present a mixed picture. On the positive side, the company reported a consolidated net profit of ₹0.24 crores for Q4 FY26, which is a remarkable 200% increase year-on-year. Additionally, revenue grew by 43.33% year-on-year to ₹0.43 crores, and the operating margin improved significantly to 62.79%, up from 40.00% in the same quarter last year. This indicates strong top-line growth and improved operational efficiency.<BR><BR>However, there are notable concerns. The net profit declined by 14.29% compared to the previous quarter, raising questions about the sustainability of earnings. Furthermore, the company's return on equity (ROE) remains low at just 1.86%, indicating inefficiencies in generating returns for shareholders. The stock is also trading at an extremely high price-to-earnings (P/E) ratio of 177, which is significantly above the industry average of 21, suggesting that it may be overvalued.<BR><BR>In summary, while BITS Ltd shows impressive year-on-year growth in revenue and profit, the sequential decline in profit and high valuation metrics present significant red flags. Investors should be cautious and consider these factors when evaluating the company's performance.

When is the next results date for BITS Ltd?

The next results date for BITS Ltd is 25 May 2026.

The next results date for BITS Ltd is scheduled for 25 May 2026.

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