Why is BITS Ltd ?
1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 3.87%
- Poor long term growth as Net Sales has grown by an annual rate of 12.99% and Operating profit at 8.58% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.03
2
With ROE of 1.9, it has a Very Expensive valuation with a 5.2 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 -37.09%, its profits have risen by 37% ; the PEG ratio of the company is 1
3
Below par performance in long term as well as near term
- Along with generating -37.09% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
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
-37.09%
-0.64
57.74%
Sensex
7.18%
0.64
11.21%
Quality key factors
Factor
Value
Sales Growth (5y)
12.99%
EBIT Growth (5y)
8.58%
EBIT to Interest (avg)
0.03
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.02
Sales to Capital Employed (avg)
0.04
Tax Ratio
0
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0.07%
ROCE (avg)
-0.09%
ROE (avg)
3.87%
Valuation Key Factors 
Factor
Value
P/E Ratio
190
Industry P/E
27
Price to Book Value
5.19
EV to EBIT
105.80
EV to EBITDA
105.80
EV to Capital Employed
5.27
EV to Sales
78.95
PEG Ratio
0.97
Dividend Yield
NA
ROCE (Latest)
1.54%
ROE (Latest)
1.86%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bearish
Technical Movement
7What is working for the Company
PBDIT(Q)
Highest at Rs 0.15 cr.
PBT LESS OI(Q)
Highest at Rs 0.09 cr.
PAT(Q)
Highest at Rs 0.28 cr.
EPS(Q)
Highest at Rs 0.03
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 7.41 times
Loading Valuation Snapshot...
Here's what is working for BITS
Operating Profit (PBDIT) - Quarterly
Highest at Rs 0.15 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 0.09 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 0.28 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 0.03
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Here's what is not working for BITS
Debtors Turnover Ratio- Half Yearly
Lowest at 7.41 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio






