BLS E-Services (BLS) Stock Plummets 40% from Peak, Falls Below IPO Price: Is It a Buy Opportunity?

<ul>
  <li>BLS E-Services share price has been trading roughly 30% less than its listing price of ₹366.</li>
  <li>The BLS E-Services share price made an impressive start on February 6, 2024, where it opened at ₹305 on the NSE, 125.93% more than the ₹135 issue price.</li>
  <li>Since March 5, the price of the stock has been below its listing price.</li>
</ul>
<p><strong>Discover the latest developments in BLS E-Services' stock performance and future outlook.</strong></p>
<h2><strong>BLS E-Services - Road Ahead</strong></h2>
<p>As part of its inorganic expansion plan, the business is reportedly mulling an acquisition for the current fiscal year (FY25), according to a PTI news report.</p>
<h3><strong>Inorganic Growth Strategy</strong></h3>
<p>The firm, according to a PTI news report, has 21,000 banking correspondent centres around the nation and has partnerships with 15 banks, including State Bank of India, Bank of Baroda, and HDFC Bank.</p>
<p>Chairman of BLS E-Services Ltd. Shikhar Aggarwal told PTI that they are currently negotiating with two to three companies. There is ongoing due diligence. To promote inorganic growth, the company intends to make acquisitions during the current fiscal year.</p>
<p>As per the news report, Aggarwal told PTI that the firm has set aside ₹28.71 crore for the acquisition and that the funds were collected through an earlier this year ₹311 crore initial public offering.</p>
<h3><strong>Organic Growth Initiatives</strong></h3>
<p>Furthermore, by growing its BLS Stores, the firm hopes to achieve organic growth, according to Shikhar.</p>
<p>For the fiscal year that ended in March 2024, the firm recorded a 65% rise in net profit, coming in at ₹33.53 crore as compared to ₹20.33 crore the previous fiscal year.</p>
<p>From ₹73.62 crore in the previous fiscal year to ₹78.71 crore this year, the company's total income increased. In the financial year, the company's total expenditures climbed to ₹64.29 crore from ₹62.05 crore in FY23.</p>
<h3><strong>Conclusion</strong></h3>
<p>BLS E-Services has shown significant growth both organically and inorganically, with plans for further expansion. Investors should keep an eye on the company's strategic moves and financial performance to make informed decisions.</p>