SIS Limited (SIS) AI Stock Analysis

• Market Cap: ₹41.69B
• Dividend Yield: N/A
• Average Volume (3M): 26.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 11.80%
• EPS Growth: -65.64%
• Country: IN
• Employees: 288,548
• Sector: Services
• Sector Strength: N/A
• Industry: Security & Protection Services
• EPS (TTM): -9.80
• Shares Outstanding: 141,246,410
• 10 Day Avg. Volume: 3,071
• 30 Day Avg. Volume: 26,566
• PEG Ratio: -4.39
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 8.24
• 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): 17.67
• Revenue Forecast (FY): ₹153.97B

• Rating: 61 Neutral
• Price Target: ₹314.00 ▼(-7.18% Downside)
• Action: Reiterated Date: 09/06/25
• Date: Action: Reiterated 09/06/25

The overall stock score of 61 reflects solid financial performance with strong revenue growth and cash flow management. However, the high P/E ratio suggests overvaluation, and technical indicators point to a bearish trend. Profitability challenges and lack of dividend yield further impact the score.

Positive Factors

Revenue Growth

Consistent top-line expansion indicates the company is gaining or retaining business across its asset-intensive services. Durable revenue growth supports scaling of operations, helps absorb fixed costs, and underpins long-term cash flow generation and reinvestment capacity.

Free Cash Flow Generation

Very strong free cash flow growth and healthy operating-cash-to-net-income ratios show robust cash conversion. Persistent FCF strength enhances liquidity, funds capex and working capital internally, reduces dependence on external financing, and supports strategic flexibility.

Balance Sheet Strength

A rising equity base and moderate leverage provide financial resilience. This capital structure improves creditworthiness, cushions cyclical shocks common in industrial services, and preserves the ability to pursue M&A or invest in technical capability without over-reliance on debt.

Negative Factors

Net Profit Margin Compression

A near-zero net margin indicates the company converts very little revenue into earnings after expenses. Over the medium term this limits retained earnings and capacity to reward shareholders, and suggests structural cost, pricing, or operating inefficiency that must be resolved to improve returns.

Declining Return on Equity

ROE collapsing despite growing equity signals poor capital efficiency. If management cannot translate equity growth into proportional earnings, investor returns will remain weak, making it harder to justify reinvestment and potentially increasing the cost of capital for future projects.

Earnings Volatility (EPS Collapse)

A large negative EPS growth rate reflects volatile or declining underlying profits. Persistent earnings volatility impairs forecasting, raises financing costs, and can force conservative capital allocation, constraining long-term investments and undermining strategic initiatives.

SIS Limited Business Overview & Revenue Model

Company Description

SIS Limited, together with its subsidiaries, operates as a security and related services company in India, Australia, Singapore, and New Zealand. It operates through three business groups: Security Services (India), Security Services (International), and Facility Management. The company offers manned guarding, training, physical security, fire detection and suppression, maritime and aviation security, perimeter protection, command and control center, access control/entry automation, closed circuit television, intrusion detection, and paramedic and emergency response services; and loss prevention, asset protection, and rowing and mobile patrolling services. It also provides cash logistics services, including cash-in-transit, door step banking, ATM cash replenishment, and precious items and bullion transportation services; and alarm monitoring and response services, such as trading and installation of electronic security devices and systems. In addition, the company offers facility management services, which include cleaning, house-keeping, pest control management, office support, gardening, mechanical, and electrical maintenance, plumbing, preventive maintenance, repairing, and business process outsourcing services, as well as asset management, short-term repairs, heating, ventilation, and air-conditioning services. It serves power, telecom, transportation, aviation, ports, logistics, real estate and townships, educational institutions, and healthcare establishments. The company was formerly known as Security and Intelligence Services (India) Limited and changed its name to SIS Limited in January 2021. SIS Limited was incorporated in 1985 and is based in New Delhi, India.

How the Company Makes Money

SIS generates revenue through multiple streams, including the sale of live data feeds and content to bookmakers, providing them with essential information for live betting. Additionally, the company earns income from subscription-based services for its software and analytics platforms used by sports organizations and betting companies. Significant partnerships with major sports leagues and betting operators further enhance SIS's earning potential, allowing them to expand their customer base and increase the volume of data transactions. The company's focus on technology innovation and commitment to providing high-quality services also contribute to its competitive positioning and revenue generation.

SIS Limited Financial Statement Overview

Summary

SIS Limited shows solid revenue growth and improved cash flows, indicating strong operational performance. However, declining net profit margins and return on equity highlight profitability challenges. The balance sheet is stable with moderate leverage, but efficiency in generating returns needs improvement.

Income Statement

The income statement shows a solid growth trajectory with a consistent increase in total revenue over the years, resulting in a notable revenue growth rate of 7.56% from 2024 to 2025. Gross profit margin has improved significantly, indicating better cost management, with a margin of 16.37% in 2025. However, net profit margin has decreased to 0.09% in 2025, showing pressure on profitability. The EBIT and EBITDA margins show a mixed trend, with EBIT margin improving to 16.37% while EBITDA margin remains relatively stable at 4.58%.

Balance Sheet

The balance sheet reflects a strong equity position, with stockholders' equity consistently growing over the years, representing 39.40% of total assets in 2025. The debt-to-equity ratio is relatively stable at 0.68, indicating moderate leverage. However, the return on equity has decreased to 0.49% in 2025, highlighting challenges in generating returns for shareholders.

Cash Flow

Cash flow analysis exhibits robust free cash flow growth at 155.27% from 2024 to 2025, demonstrating effective cash management and operational efficiency. The operating cash flow to net income ratio is strong at 62.98, indicating good cash generation relative to net income. Free cash flow to net income ratio is also healthy at 49.98, despite fluctuations in capital expenditures.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	136.08B	131.89B	122.61B	113.46B	100.59B	91.27B
Gross Profit	78.95B	21.20B	20.33B	112.39B	99.79B	90.47B
EBITDA	6.99B	6.04B	5.84B	5.24B	5.51B	7.22B
Net Income	405.17M	117.88M	1.90B	3.46B	3.25B	3.65B
Balance Sheet
Total Assets	0.00	61.12B	59.73B	57.13B	50.96B	50.40B
Cash, Cash Equivalents and Short-Term Investments	10.55B	10.55B	7.00B	7.25B	7.07B	10.35B
Total Debt	0.00	16.45B	16.58B	16.47B	14.51B	14.73B
Total Liabilities	-24.08B	37.04B	35.60B	33.79B	30.22B	32.07B
Stockholders Equity	24.08B	24.08B	24.14B	23.33B	20.71B	18.31B
Cash Flow
Free Cash Flow	1.76B	5.89B	2.31B	415.85M	1.25B	5.71B
Operating Cash Flow	2.12B	7.42B	3.94B	1.71B	2.33B	6.40B
Investing Cash Flow	-568.69M	-4.74B	-1.04B	-1.48B	-1.22B	-1.64B
Financing Cash Flow	-315.80M	-145.00M	-3.40B	-2.29B	-3.51B	438.36M

SIS Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 338.30
• 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:SIS, the sentiment is Negative. The current price of 338.3 is above the 20-day moving average (MA) of 313.43, above the 50-day MA of 321.35, and below the 200-day MA of 339.54, indicating a bearish trend. The MACD of -8.22 indicates Positive momentum. The RSI at 38.34 is Neutral, neither overbought nor oversold. The STOCH value of 35.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SIS.

SIS Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WELENT	63 Neutral	₹63.94B	74.06	―	0.58%	9.11%	16.30%
PSPPROJECT	62 Neutral	₹28.18B	48.21	―	―	-2.24%	-70.79%
SIS	61 Neutral	₹41.69B	-8.49	―	―	11.80%	-65.64%
MAHLOG	60 Neutral	₹38.83B	239.85	―	0.69%	11.82%	28.42%
THOMASCOOK	57 Neutral	₹44.33B	41.31	―	0.32%	11.02%	-9.59%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
QUESS	55 Neutral	₹28.53B	13.93	―	4.70%	-16.43%	-75.38%

SIS Limited Corporate Events

SIS Limited Issues New Shares Under Employee Stock Option Plan

SIS Limited has allotted 13,106 equity shares of INR 5 each following the exercise of employee stock options, reflecting the use of stock-based incentives within its workforce. The move modestly increases the company’s paid-up share capital to INR 706.23 million, indicating a slight dilution for existing shareholders but supporting long-term employee alignment with corporate performance.

The updated capital structure now comprises 141,246,420 equity shares of INR 5 each, reinforcing transparency for investors and exchanges regarding the company’s share count. While the quantum of new shares is small relative to total capital, such issuances under the Employee Stock Option Plan are part of ongoing capital management and can influence future earnings-per-share calculations and shareholder value metrics.

SIS Limited Increases Paid-Up Capital Following ESOP Share Allotment

SIS Limited has allotted 50,733 new equity shares of ₹5 each following the exercise of employee stock options under its Employee Stock Option Plan, as approved by the company’s Nomination and Remuneration Committee. As a result of this allotment, the company’s paid-up share capital has increased to ₹706,166,570, divided into 141,233,314 equity shares of ₹5 each, reflecting a marginal equity dilution while reinforcing the firm’s use of stock-based compensation to align employee interests with shareholder value.

SIS Limited Increases Paid-Up Capital After ESOP Share Allotment

SIS Limited has approved the allotment of 181,889 equity shares with a face value of INR 5 each following the exercise of employee stock options under its Employee Stock Option Plan. As a result of this issuance, the company’s paid-up share capital has increased to INR 705,912,905, comprising 141,182,581 equity shares, a modest equity expansion that reflects ongoing use of stock-based incentives and a slight dilution for existing shareholders.

SIS Limited Announces Trading Window Closure Ahead of Q3 FY2026 Results

SIS Limited has announced that, in line with SEBI’s Prohibition of Insider Trading Regulations, 2015 and its own internal code of conduct, the trading window for dealings in its securities by designated persons and their immediate relatives will be closed from 1 January 2026. The window will remain shut until 48 hours after the company publicly releases its unaudited financial results for the quarter and nine months ended 31 December 2025, a board meeting for which will be scheduled and disclosed separately, underscoring the company’s compliance focus and efforts to prevent insider trading around key financial disclosures.