In view of the large UK contract win and growth visibility in the visa business, we maintain our BUY rating with a TP of Rs 265, based on 20x FY20 EPS. BLS International posted mixed set of numbers in 1QFY19, with muted revenue growth but strong operational performance. Revenue stood at Rs 2.01bn, down 1.6% QoQ lower than our est. of Rs 2.12bn. EBITDA margin expanded 792bps QoQ (highest ever) to 24.6% (our est. was 17.0%) due to higher revenue contribution from VAS services (Spain) which is higher margin.

BLS International Se.. has an average target of 604.00 from 1 broker.

BLS International Services Ltd.

23 May 2018

308.50

-2.20%

BLS International Services (4QFY18): Back on track. Upgrade to BUY

Buy: BLS International Services...

Recommendation Target

HDFC Securities

We increase our revenue estimate by 28/54% and PAT est. by 11/30% for FY19/20E. We expect Rev/EBITDA/PAT CAGR of 15/7/13% for FY18-20E. BLS International posted muted set of numbers in 4QFY18, but the new contract win from United Kingdom Visas & Immigration (UKVI) with strategic alliance with Sopra Steria (French IT company) is a game changer. The total contract value for BLS is GBP 110mn (Rs 10bn) over three year period with margin of ~22%. The UK contract is bigger than Spain and will start contributing from Oct-18. BLS will open 60 offices (capex of GBP 1mn) in UK and process ~0.5mn visa (renewals) at average realization of GBP 80/application. We have assumed Rs 1.64/3.37bn revenue from UK in FY19/20E.

BLS International Services Ltd. has lost -22.24% in the last 3 Months

BLS International Services Ltd.

14 Feb 2018

308.50

-2.20%

BLS International Services (3QFY18): Uncertainty persist. Maintain SELL

Sell: BLS International Services...

Target

HDFC Securities

In view of the termination of Punjab e-governance contract, uncertainty regarding receivables and no near-term growth visibility, we maintain our SELL rating with a TP of Rs 170, based on 20x Dec-19E EPS. BLS International posted a mixed set of numbers in 3QFY18, with beat on revenue, but miss on margins (-450bps QoQ to 18.7% vs our est. of 22.7%). Revenue stood at Rs 2.03bn, up 8.8% QoQ, led by 9.5% QoQ rise in the Visa segment (~75% of rev). Growth in visa business was led by pick-up in Spain visa applications and contribution from newer contracts (Afghanistan). The Punjab e-governance revenue stood at Rs 0.50bn (~25% of rev).

BLS International Se.. has an average target of 604.00 from 1 broker.

BLS International Services Ltd.

31 Jan 2018

308.50

-2.20%

BLS International Services (Update): Sailing through rough weather. Downgrade to SELL

Sell: BLS International Services...

Recommendation Target

HDFC Securities

In view of the termination of Punjab e-governance contract, uncertainty regarding high receivables and no near-term growth triggers we downgrade our rating to SELL with a TP of Rs 160, based on 20x Dec-19 EPS (earlier 25x) and adjusting for one-time write-off impact of Rs 10/share. Punjab government has terminated the five year e-governance contact awarded to BLS International in Mar-16. This came in as a major negative surprise as we were expecting closure of only some financially unviable centers out of total 2,147 seva kendras operated by BLS.

BLS International Se.. has an average target of 604.00 from 1 broker.

BLS International Services Ltd.

11 Nov 2017, 08:30PM

308.50

-2.20%

BLS International Services (2QFY18): Near-term hiccups. Maintain BUY

Buy: BLS International Services...

Target

HDFC Securities

Maintain BUY with a TP of Rs 300, based on 25x Sep-19 EPS. BLS International witnessed a mixed set of numbers in 2QFY18, with a miss on revenue, but beat on margins (+105bps QoQ to 23.2% vs our est. of 20%). Margin expansion was led by a greater contribution from the higher-margin Spanish Visa (~25%) and Punjab e-governance businesses (~30%). Revenue came in Rs 1.86bn, down 4.4% QoQ, led by 6.4% drop in the Visa business (~75% of rev). Visa revenue was soft, owing to seasonality. However, it is expected to revive in 2H, led by a rise in Visa applications in Spain, higher realisations led by VAS services, and contributions from new contracts.

BLS International Services Ltd. has lost -25.32% in the last 1 Year

BLS International Services Ltd.

12 Aug 2017

308.50

-2.20%

BLS International Services (1QFY18): Strong processing capability. Maintain BUY

Buy: BLS International Services...

Target

HDFC Securities

Maintain BUY with a TP of Rs 270, based on 25x FY19E EPS. BLS International reported a strong set of numbers in 1QFY18. Strong beat on margins (+453bps QoQ to 22.2%) was led by integration of the higher-margin Spanish visa business and absence of one-time costs incurred last quarter. Revenue was Rs 1.95bn, up 0.4% QoQ and 57.1% YoY. The Spain visa revenue stood at ~Rs 270mn (considering only 50%). The company processed ~0.45mn visas, with an average realisation of Rs ~1,200/visa.

BLS International Se.. has an average target of 604.00 from 1 broker.

Is BLS International Services Ltd. worth buying?

512 Votes:

Buy 82.42%

Sell 8.59%

Hold 8.98%

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