Initiating Coverage — 'Buy' BLS International Recommends IDBI Capital As Digital Pivot Drives 37% Upside

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IDBI Capital Report

IDBI Capital has initiated coverage on BLS International Services Ltd., assigning a 'Buy' rating with a target price of Rs 445, implying an upside potential of 37% from the current market price of Rs 324.

Valuation outlook

BLS International is set for robust growth with revenue projected to rise at a 24% CAGR to Rs 33.47 billion by FY27, driven by international expansion, cost control, process automation, and high gross margin digital services.

Ebitda margin is expected to improve to 29.4% while PAT should grow by 37% CAGR, hitting Rs 8.54 billion.

Strong free cash flow, conservative capex, and high return ratios (ROE/ROCE 25–30%) highlight financial strength and flexibility. Strategic acquisitions, key contracts, and expanding digital platforms underpin a positive outlook and Buy rating, with a target price of Rs 445, representing a 37% upside.

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