BLB Limited trades and invests in shares, securities, and commodities in India. The company was founded in 1965 and is based in New Delhi, India.

India

BLB Limited

Financial Services

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

BLBLIMITED.NS reported revenue of INR 6 810mn in the last 12 months, up 270% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS fell 39% from FY23 to INR 0.84.

The stock's performance has been mixed in the past six months, with growth following a decline. There is no clear price trend compared to its global peers from the same sector and industry (as shown above). It has underperformed this peer group by 25ppts over six months and grown 9ppts slower in the past month. This is largely true for peers from the same country and sector. With respect to the stock's valuation against its peers, its overall price performance is slightly negative.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to 0.9% in the last 12 months, a decline from 5.3% in FY23. 

Historically, BLBLIMITED.NS has reported weak net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled 0.7%, down from 3.9% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 4.3% in the last 12 months, a decrease from 7.4% in FY23. 

BLB Limited reported a return on equity (RoE) of 4.4% in the last 12 months, down from 7.6% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to 4.4%, below the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 1.4 in the past several years. This ratio implies a average shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

BLBLIMITED.NS has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is unstable and is unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. The stock has a tiny market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, low margin volatility, strong debt servicing capacity, solid cash flow generation, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, bleak profitability, negligible return on capital, and poor working capital management.

In highly turbulent market conditions, BLBLIMITED.NS is exceptionally volatile. In other words, the stock will be among the worst-performers in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be critical. 

In normal market circumstances, BLBLIMITED.NS is exceptionally volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will change quite unpredictably. The stock's losses on its worst days (less than 1-5% of the time) will range from large to substantial. 

From both historical and forecast perspectives, the stock is fairly priced compared to similar stocks. Specifically, the stock is fairly valued on P/E, undervalued on EV/EBITDA, overpriced on P/FCF. 

BLB Limited

₹ 14.85

3

BLB Limited

₹ 14.85

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₹ 14.85

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