BSL Ltd (BSL) AI Stock Analysis

• Market Cap: ₹1.31B
• Dividend Yield: 0.51%
• Average Volume (3M): 2.98K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 1.23
• Revenue Growth: -0.22%
• EPS Growth: -51.08%
• Country: IN
• Employees: 460
• Sector: Services
• Sector Strength: N/A
• Industry: Apparel - Manufacturers
• EPS (TTM): 1.15
• Shares Outstanding: 10,292,168
• 10 Day Avg. Volume: 1,107
• 30 Day Avg. Volume: 2,981
• PEG Ratio: -0.78
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 3.88
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹133.00 ▼(-8.90% Downside)
• Action: Reiterated Date: 11/26/25
• Date: Action: Reiterated 11/26/25

BSL Ltd's overall stock score is primarily influenced by its financial performance, which shows strong revenue growth and improved operational efficiency. However, the declining net profit margin and increased debt levels are significant risks. The technical analysis presents mixed signals, with some bullish momentum but no clear trend. The valuation suggests the stock may be overvalued, with a high P/E ratio and low dividend yield.

Positive Factors

Free Cash Flow Improvement

Significant FCF improvement to 445.9m provides durable internal funding for capex, working capital and debt servicing. Sustained cash generation enhances financial flexibility, reduces refinancing risk and supports strategic investments over the next several quarters.

Revenue Growth Trajectory

Consistent top-line expansion across 2022–2025 indicates persistent market demand and effective commercial execution. Durable revenue growth supports scale economies, underpins operating leverage potential and creates a runway for sustained margin recovery and reinvestment.

Improved Operating Efficiency

A marked rise in EBIT margin reflects lasting operational efficiency gains and better cost controls. Higher operating margins strengthen core profitability, providing a cushion against macro volatility and improving the company's ability to fund growth and service obligations.

Negative Factors

Rising Leverage

Material increase in leverage and a lower equity ratio raise solvency and refinancing risks and constrain strategic flexibility. Higher debt amplifies sensitivity to interest-rate moves and cash-flow variability, making capital allocation and long-term investments more precarious.

Eroding Net Profit Margin

Declining net margin despite revenue gains suggests erosion from financing, taxes or non-operating items. Weak bottom-line conversion limits retained earnings, depresses ROE and reduces capacity to sustainably fund dividends or organic expansion over multiple reporting periods.

Cash Flow Volatility / Liquidity Risk

Historic negative FCF and noted volatility imply inconsistent liquidity generation, which weakens resilience to demand shocks. Irregular cash flows increase reliance on external funding for working capital or capex and raise execution risk for multi-quarter growth plans.

BSL Ltd Business Overview & Revenue Model

Company Description

BSL Limited, a textile company, manufactures and sells fabrics and yarns in India and internationally. The company operates through Textile and Wind Power segments. It produces a range of polyester viscose fabrics, including suiting, shirting, safari, and corduroy blends; worsted fabrics, such as wool, wool rich, lycra blended poly wool, poly viscose, mohair polyester wool, and polyester silk wool fabrics. The company also offers wool, wool-blended, and premium lightweight fabrics; wool modal, Trevira wool, and other specialized fabrics blended with lycra, silk, linen, tencel, etc.; and furnishing and fashion fabrics. In addition, it is involved in the generation of wind power at Jaisalmer. The company offers its products online under the BSL, INSIGNIA, and GEOFFREY HAMMONDS brands. BSL Limited was incorporated in 1970 and is based in Noida, India.

How the Company Makes Money

BSL generates revenue through multiple streams, primarily by selling its core products and services to businesses and consumers. The company utilizes a direct sales model, complemented by online sales channels, allowing it to reach a wider audience. Additionally, BSL engages in strategic partnerships with key players in the industry, enhancing its distribution capabilities and expanding its market reach. The company may also derive income from recurring revenue models, such as subscriptions or maintenance contracts, which provide a steady income flow. Furthermore, BSL invests in research and development to innovate and introduce new products, ensuring ongoing demand and customer loyalty.

BSL Ltd Financial Statement Overview

Summary

BSL Ltd has demonstrated strong revenue growth and improved operational efficiency, as seen in the enhanced EBIT margin. However, the declining net profit margin and increased debt levels pose potential risks. The company has shown improvement in cash flow generation, which is a positive sign, but the increased leverage and declining equity ratio indicate potential financial stability concerns.

Income Statement

BSL Ltd has shown a strong growth trajectory in revenue over the years with a significant increase from 2022 to 2025. The gross profit margin improved from 35.6% in 2022 to 35.9% in 2025. However, the net profit margin has declined from 2.6% in 2022 to 1.2% in 2025, highlighting a decrease in profitability. The EBIT margin has improved from 6.5% in 2022 to 21.6% in 2025, indicating better operational efficiency, but the drop in net income suggests rising costs or other expenses.

Balance Sheet

The debt-to-equity ratio has increased from 2.08 in 2022 to 3.53 in 2025, indicating a higher reliance on debt financing. The equity ratio has decreased from 25.4% in 2022 to 19.0% in 2025, suggesting reduced financial stability. Return on Equity (ROE) has decreased from 12.9% in 2022 to 6.8% in 2025, reflecting challenges in generating returns for shareholders.

Cash Flow

BSL Ltd's free cash flow has improved significantly from a negative figure in 2022 to a positive 445.9 million in 2025, showing improved cash generation capability. The operating cash flow to net income ratio is positive, indicating efficient cash conversion, though the volatility in cash flows over the years suggests potential liquidity management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.61B	6.67B	6.66B	4.72B	4.34B	3.21B
Gross Profit	2.49B	2.39B	2.90B	2.03B	1.54B	1.14B
EBITDA	571.92M	595.96M	634.62M	506.63M	418.13M	305.85M
Net Income	63.15M	81.58M	112.33M	169.09M	114.79M	13.59M
Balance Sheet
Total Assets	0.00	6.27B	6.18B	5.38B	3.52B	2.88B
Cash, Cash Equivalents and Short-Term Investments	1.43M	2.89M	1.58M	17.92M	10.90M	5.94M
Total Debt	0.00	4.21B	4.37B	3.46B	1.86B	1.61B
Total Liabilities	-1.19B	5.07B	5.05B	4.34B	2.63B	2.10B
Stockholders Equity	1.19B	1.19B	1.13B	1.04B	893.02M	782.78M
Cash Flow
Free Cash Flow	0.00	445.88M	-620.06M	-1.48B	-135.14M	146.79M
Operating Cash Flow	0.00	570.07M	-394.70M	188.18M	25.77M	165.46M
Investing Cash Flow	0.00	-113.13M	-203.63M	-1.60B	-152.19M	-13.40M
Financing Cash Flow	0.00	-457.12M	597.83M	1.41B	127.56M	-154.28M

BSL Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 146.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BSL, the sentiment is Negative. The current price of 146 is above the 20-day moving average (MA) of 134.10, above the 50-day MA of 140.51, and below the 200-day MA of 157.61, indicating a bearish trend. The MACD of -3.41 indicates Positive momentum. The RSI at 34.36 is Neutral, neither overbought nor oversold. The STOCH value of 24.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:BSL.

BSL Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LAMBODHARA	69 Neutral	₹1.03B	13.04	―	0.42%	13.13%	-2.13%
BSL	61 Neutral	₹1.31B	33.72	―	0.51%	-0.22%	-51.08%
LOYALTEX	56 Neutral	₹1.05B	-1.31	―	―	-30.97%	80.99%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
LAL	54 Neutral	₹1.21B	35.63	―	―	20.81%	-133.88%
SOMATEX	50 Neutral	₹3.84B	61.26	―	―	-19.83%	-96.76%
INDTERRAIN	48 Neutral	₹1.55B	17.32	―	―	-5.67%	71.26%