Nuvama Assigns Target Price Of Rs 637 To BLS International Services; BUY/SELL/HOLD?

BLS International Services Limited (BSE: 540073, NSE: BLS) is an Indian multinational corporation and trusted global provider of information technology and other service solutions for governments and citizens. The company Nuvama has placed a buy recommendation on BLS, the target price being INR 637.

Nuvama said, "The operational performance met our projections. It achieved the highest quarterly revenue in the company's history. As the sole listed Indian business in the global outsourcing of visa issuing and G2C services, IN BLSIN is operating under a capital-light and cash-generating business model with tremendous growth opportunities. Profits can be further bolstered through new visa contracts and expansion of the digital services network. Its strong acquisition history continues to strengthen the company's market position and widen the scope of its services further. Taking into consideration the company achieving targets in Q3FY25 and providing more margin than estimated, we have increased our FY25/FY26 EBITDA forecast by 6% each. Therefore, we increased out СОПP TP from INR 604 to INR 637. Maintain 'BUY'."

Earlier, BLS International announced its unaudited consolidated financial statements for the three-month and nine-month period ending December 31, 2024.

The company had an increase in Revenue from Operations as it grew 17.1 percent year on year to reach Rs. 512.8 Crores in Q3FY25, compared to Rs. 437.9 Crore in Q3FY24. During this quarter, the company's EBITDA increased to Rs. 158.1 Crores, which is 78.5 percent higher than the same quarter in the previous fiscal year where it was Rs. 88.6 Crores. EBITDA Margin reached Rs. 158.1 Crores in Q3FY25 as compared to 20.2% in Q3FY24. The margin expansion was facilitated by the self-managed model previously in transition from the partner-run model along with the other businesses that were acquired. Profit after Tax (PAT) for the quarter grew by 46.7 percent in comparison to the 87.2 Crores reported in Q3FY24 to reach Rs. 127.9 Crores. Following the acquisitions in FY25, the company's cash balance at the end of the quarter on December 31, 2024 stood at Rs. 690 Crores.

In 9MFY25, the company generated revenue of Rs. 1,500.5 Crores as opposed to 1,229.1 Crores in 9MFY24. This represents a growth of 22.1% YoY. The company's EBITDA grew from Rs. 255.4 Crores to Rs. 455.2 Crores in 9MFY25, registering a YoY growth of 78.3%. Along with this, the EBITDA Margin also increased from 20.8% in 9MFY24 to 30.3% in 9MFY25. NET profit stands at Rs. 394.4 Crores, which is an increase of 64.2% YoY compared to PAT of Rs. 240.2 Crores in 9MFY24. The company is now well above the profits of Rs 325.6 in FY24.

BLS International Services Ltd, a reputable global technology-enabled services partner, was founded in 2005. The company has established an impeccable reputation for being a benchmark-setting company in the range of visa, passport, consular, citizen, and e-governance services. This firm offers services for attestation, biometrics, e-visa, and even retail services.

BLS International Services Ltd is recognized by Business Today magazine as "India's Most Valuable Companies". In addition, the firm is known as the "Best Under a Billion" by Forbes Asia and is ranked in "Fortune India's Next 500 Companies". The second largest International Visa and consular service provider, BLS International works with more than 46 client governments, which include diplomatic missions and embassies. The firm implements processes and systems that ensure the security of data while maintaining an international relationship with their clients.

BLS International is certified with CMMI DEV L5 V2.0 and SVC L5 V2.0, ISO 9001:2015, ISO 27001:2013, and ISO 14001:2015, among others. Being the first international company listed in this sector, BLS International boasts an impressive operational presence in over 70 countries.