Why is BITS Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.73%
- Poor long term growth as Net Sales has grown by an annual rate of 14.69% and Operating profit at 10.30% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.07
2
Flat results in Mar 26
- DEBTORS TURNOVER RATIO(HY) Lowest at 7.00 times
3
With ROE of 3.4, it has a Very Expensive valuation with a 4.4 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -29.40%, its profits have risen by 49% ; the PEG ratio of the company is 0.6
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) generated negative returns of -2.24% in the last 1 year, its fall in the stock was much higher with a return of -29.40%
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is BITS for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
BITS
-29.4%
-0.52
56.11%
Sensex
-7.55%
-0.58
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
14.69%
EBIT Growth (5y)
10.30%
EBIT to Interest (avg)
0.07
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.04
Sales to Capital Employed (avg)
0.05
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
0.15%
ROE (avg)
3.73%
Valuation Key Factors 
Factor
Value
P/E Ratio
127
Industry P/E
20
Price to Book Value
4.37
EV to EBIT
90.77
EV to EBITDA
90.77
EV to Capital Employed
4.49
EV to Sales
61.75
PEG Ratio
0.60
Dividend Yield
NA
ROCE (Latest)
2.32%
ROE (Latest)
3.44%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
Bearish
Bearish
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
Technical Movement
5What is working for the Company
PAT(Latest six months)
Higher at Rs 0.52 cr
PBDIT(Q)
Highest at Rs 0.27 cr.
PBT LESS OI(Q)
Highest at Rs 0.22 cr.
-2What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.00 times
Loading Valuation Snapshot...
Here's what is working for BITS
Profit After Tax (PAT) - Latest six months
Higher at Rs 0.52 cr
than preceding 12 month period ended Mar 2026 of Rs 0.38 crMOJO Watch
In the half year the company has already crossed PAT of the previous twelve months
PAT (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 0.27 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 0.22 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Here's what is not working for BITS
Debtors Turnover Ratio- Half Yearly
Lowest at 7.00 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






