BLS International Services Share Price Target: Buy The Stock After Correcting From Record High Levels?

BLS International Services Ltd operates in the consumer discretionary category and is a BSE 500 firm. The shares of BLS International Services saw a fall from the record high today after hitting a new 52-week high of Rs 449 on Wednesday. BLS International Services shares fell 1.43% during the intraday session today; this week, the stock saw a breakout.

Religare Broking Ltd has initiated a buy call on the shares of BLS International Services and recommended accumulating the stock in Rs 420-426 range, keeping stop-loss at Rs 394 for a target price of Rs 485.

"After a vertical upward rally, BLS witnessed a correction from record high levels. The consolidation resulted in the formation of a rounding bottom pattern with relatively lower volumes, which denotes a lack of selling pressure. This week, the stock has registered a breakout from the mentioned pattern with supportive momentum suggesting resumption of the prior up trend," said the brokerage firm in a note.

"We hereby inform you that the Register of Members and Share Transfer Books of the Company will remain closed from Friday, September 06, 2024 to Thursday, September 12, 2024 (both days inclusive) for the purpose of Final Dividend and 40" AGM of the Company. Dividend shall be payable to those shareholders, whose names appear in the Register of Members / list of Beneficial Owners with the NSDL, CDSL and RTA of the Company at the end of business hours on September 05, 2024 (Thursday)," BLS International Services recently informed stock exchanges.

"Pursuant to Finance Act, 2020, dividend income will be taxable in the hands of the shareholders with effect from April 1, 2020. Hence, the Final dividend shall be paid after deducting tax at source ('TDS') in accordance with the provisions of the Income Tax Act, 1961. Members are requested to submit all requisite documents on or before the end of business hours of September 05, 2024, to enable the Company to determine the appropriate TDS rates, as applicable," the company further said in a stock exchange filing.

"During the financial year under review, the Company has given strong financial performance, considering the performance of the company, the Board declared an interim dividend of 50% (Rs. 0.50/- per equity share) on February 12, 2024. Based on the Company's performance, further, your Directors are pleased to recommend for approval of the members, a final dividend of 50% (Rs. 0.50/- per equity share) for the Financial Year ended March 31, 2024. The Final Dividend shall be payable post Shareholders' approval at the 40th Annual General Meeting," BLS International Services in a statement.

The firm had an excellent beginning to the year and performed well during the quarter ended June 2024, with consolidated revenue and EBITDA boosts of 28.5% and 66.3% YoY, respectively. The Visa and Consular business, which had revenue growth of 35.9% YoY and EBITDA jumped by 70.9% YoY in Q1FY25, was the main driver of the growth. The Visa & Consular business had a hike in its EBITDA margin of 600 bps YoY and 850 bps QoQ, reaching 29.3% from 23.3% in Q1FY24 and 20.8% in Q4FY24.

From Rs. 383.5 Crores in Q1FY24 to Rs. 492.7 Crores in Q1FY25, the company's revenue from operations jumped by 28.5% YoY. The company's EBITDA surged by 66.3% YoY to Rs. 133.2 crores during the quarter from Rs. 80.1 crores in Q1FY24. PAT jumped by 70.1% YoY to Rs. 120.8 Crores for the quarter from Rs. 71.0 Crores in Q1FY24.

Disclaimer

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