Optimistic future: Delivering 6x returns, this multibagger with niche market catches attention of Nomura Singapore!
The stock zoomed nearly 10 per cent and hit a fresh all-time high of Rs 231.95 on Friday. The stock had seen a run-up like the wind
BLS International Services Ltd zoomed nearly 10 per cent and hit a fresh all-time high of Rs 231.95 on Friday. The stock had seen a run-up like the wind as it provided an eye-popping return of 151.52 per cent on a YTD basis against the negative returns of 8.04 per cent by Nifty 500 index.
Interestingly, the global financial services firm - Nomura Singapore on Monday (July 11) purchased around 12.5 lakh shares of the company for Rs 27 crore through an open market transaction. According to bulk deal data available with NSE, the global financial services firm bought 12.5 lakh shares of the company at an average price of Rs 214 a piece, aggregating to about Rs 27 crore.
What is fascinating about BLS International is the fact that it is India’s only listed play in the visa & consular (VC) space with a lion's share of revenue coming from the business for the company. The company is also expanding its G2C (government to citizen services) business & banking correspondence business, which has similar characteristics to the asset-light VC business to drive growth.
In the current concluded quarter and financial year FY22, the company reported an outstanding performance with revenue surpassing the pre-COVID level. With the reopening of borders across the geographies and an increase in business & leisure travel, the company saw sustained growth month-on-month, which has resulted in revenue of Rs 850 crore for FY22.
During the quarter, company reported revenue of Rs 254 crore, which is up by 75 per cent year-on-year, largely driven by organic growth and a strong rebound in their core business of visa, passport & counsellor services.
The management is very optimistic about its growth prospects and is confident that it can take the company on a new trajectory in the coming quarters. In visa & consular business, its growth would come from multiple fronts, new clients, new geographies, and enhanced services to the existing clients. A lot of focus is also on additional services, which help it in utilising its network and infrastructure thereby, enhancing efficiency & margins.
The stock has jumped over 200 per cent in the last one year while in the past three years, the company has delivered nearly six-fold returns!
Finally, I would like to share an interesting insight that if the overall market size is small with one player controlling a large part of the market, then the small size of the market coupled with a dominant sector leader will put off any competition from entering the market. Over time, the leader of this small market becomes large in size as it achieves economies of scale.
Would you like us to elaborate more about this company? If yes, let us know in the comment section. If we get a good number of responses, we will cover it extensively.