BSL Ltd (BSL) AI Stock Analysis

• Market Cap: ₹1.15B
• Dividend Yield: 0.51%
• Average Volume (3M): 2.98K
• Price to Earnings (P/E): 33.7
• Beta (1Y): 1.06
• 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: 58 Neutral
• Price Target: ₹117.00 ▼(-19.86% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is primarily supported by improving operating efficiency and much stronger free cash flow, but it is held back by rising leverage and weaker net profitability. Technicals are a significant drag due to a clear downtrend (below major moving averages with negative MACD), and valuation looks demanding with a high P/E and low yield.

Positive Factors

Improved operating efficiency (EBIT margin)

A sustained jump in EBIT margin to 21.6% indicates structural improvement in cost control and operating leverage. Higher core profitability supports durable cash generation, funds reinvestment, and resilience to demand swings over the next several quarters.

Free cash flow turned positive

Conversion to materially positive free cash flow shows the business can fund operations and capital needs internally. Strong FCF enhances financial flexibility to reduce debt, fund growth, or support shareholder returns over the medium term.

Strong revenue growth trajectory

Consistent revenue expansion reflects market demand and successful commercial execution. Sustained top-line growth supports scale benefits, margin sustainability, and a larger base for returning to stronger profitability.

Negative Factors

Rising leverage

A much higher debt-to-equity ratio materially increases financial risk and interest burden. Elevated leverage constrains strategic flexibility, raises default vulnerability in downturns, and can negate operating gains if interest costs rise.

Declining net profit margin

The drop in net margin despite higher EBIT suggests rising non-operating costs or inefficiencies (interest, taxes, or one-offs). Persistently low net margins limit retained earnings and reduce capacity to rebuild equity or absorb shocks.

Weakened ROE and equity base

A shrinking equity ratio and falling ROE point to reduced shareholder capital buffer and lower efficiency in generating returns. Combined with higher leverage, this raises solvency concerns and may limit long-term return prospects.

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.

BSL Ltd Financial Statement Overview

Summary

Strong revenue growth and a materially improved EBIT margin indicate better operating efficiency, and free cash flow turned solidly positive by 2025. Offsetting this, net profit margin fell to 1.2% and leverage increased (debt-to-equity up to 3.53) with weakening ROE, raising profitability and balance-sheet risk.

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	6.68B	6.67B	6.66B	4.72B	4.34B	3.21B
Gross Profit	2.46B	2.39B	2.90B	2.03B	1.54B	1.14B
EBITDA	552.12M	595.96M	634.62M	506.63M	418.13M	305.85M
Net Income	55.14M	81.58M	112.33M	169.09M	114.79M	13.59M
Balance Sheet
Total Assets	6.60B	6.27B	6.18B	5.38B	3.52B	2.88B
Cash, Cash Equivalents and Short-Term Investments	12.51M	2.89M	1.58M	17.92M	10.90M	5.94M
Total Debt	4.41B	4.21B	4.37B	3.46B	1.86B	1.61B
Total Liabilities	5.40B	5.07B	5.05B	4.34B	2.63B	2.10B
Stockholders Equity	1.20B	1.19B	1.13B	1.04B	893.02M	782.78M
Cash Flow
Free Cash Flow	-54.89M	445.88M	-620.06M	-1.48B	-135.14M	146.79M
Operating Cash Flow	136.72M	570.07M	-394.70M	188.18M	25.77M	165.46M
Investing Cash Flow	-187.96M	-113.13M	-203.63M	-1.60B	-152.19M	-13.40M
Financing Cash Flow	51.31M	-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: Positive
• STOCH: Positive

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 126.26, above the 50-day MA of 132.42, and below the 200-day MA of 155.23, indicating a bearish trend. The MACD of -4.47 indicates Positive momentum. The RSI at 28.59 is Positive, neither overbought nor oversold. The STOCH value of 3.41 is Positive, 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	62 Neutral	₹925.68M	13.04	―	0.42%	13.13%	-2.13%
LAL	60 Neutral	₹1.17B	35.63	―	―	20.81%	-133.88%
BSL	58 Neutral	₹1.15B	33.72	―	0.51%	-0.22%	-51.08%
LOYALTEX	56 Neutral	₹984.72M	-1.31	―	―	-30.97%	80.99%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SOMATEX	50 Neutral	₹3.03B	61.26	―	―	-19.83%	-96.76%
INDTERRAIN	48 Neutral	₹1.43B	17.32	―	―	-5.67%	71.26%