SIS Ltd - Stock Valuation and Financial Performance

BSE: 540673 | NSE: SIS | Professional Services | Small Cap

SIS Share Price

335.35 3.15 0.95%
as on 31-Jan'25 14:05

DeciZen - make an informed investing decision on SIS

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

SIS stock performance -

P/E Ratio (CD):
21.43
Market Cap:
4,789 Cr.
52-wk low:
302.2
52-wk high:
530

Is SIS Ltd an attractive stock to invest in?

1. Is SIS Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that SIS Ltd is a good quality company.

2. Is SIS Ltd undervalued or overvalued?

The key valuation ratios of SIS Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is SIS Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of SIS Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of SIS:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
SIS Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 21.7%17.5%11.8%17.8%19.5%16.6%18.3%21.1%13.4%11%-
Value Creation
Index
0.60.3-0.20.30.40.20.40.60.0-0.2-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,0983,5513,8364,3875,8337,0938,4859,12710,05911,34612,899
Sales YoY Gr.-14.6%8%14.4%33%21.6%19.6%7.6%10.2%12.8%-
Adj EPS 5.24.538.210.114.716.335.722.223.515.5
YoY Gr.--12.4%-34.1%176.5%22.2%45.9%11%118.9%-37.7%5.6%-
BVPS (₹) 28.828.632.942.469.283.893122.9139.3157.8187.9
Adj Net
Profit
70.161.440.6113147215239529327342223
Cash Flow from Ops. 80.171.372.6100215205201640234171-
Debt/CF from Ops. 3.16.2672.64.862.15.78.9-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 15.5%14.2%10.2%12.8%
Adj EPS 18.3%18.5%12.9%5.6%
BVPS20.8%17.9%19.3%13.3%
Share Price - -7.5% -12.7% -31.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
19.415.69.621.818.218.918.132.916.815.59
Op. Profit
Mgn %
4.84.53.555.45.16.15.754.34.1
Net Profit
Mgn %
2.21.30.72.72.53.22.85.83.331.7
Debt to
Equity
0.61.111.20.60.80.90.70.70.7-
Working Cap
Days
6264697475838587858751
Cash Conv.
Cycle
292625262937444747488

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 10.17%

Net Profit is growing at healthy rate in last 3 years 12.91%

Debt to equity has declined versus last 3 years average to 0.66

Return on Equity has declined versus last 3 years average to 9.00%

Sales growth is not so good in last 4 quarters at 6.41%

Latest Financials - SIS Ltd.

Standalone Consolidated
TTM EPS (₹) 9.8 15.5
TTM Sales (₹ Cr.) 4,817 12,899
BVPS (₹.) 79.3 187.9
Reserves (₹ Cr.) 1,071 2,636
P/BV 4.19 1.77
PE 34.00 21.43
From the Market
52 Week Low / High (₹) 302.20 / 530.00
All Time Low / High (₹) 302.20 / 702.40
Market Cap (₹ Cr.) 4,789
Equity (₹ Cr.) 72.1
Face Value (₹) 5
Industry PE 36.3

Quarterly Results

 Mar'24 YoY Gr. Rt. %Jun'24 YoY Gr. Rt. %Sep'24 YoY Gr. Rt. %Dec'24 YoY Gr. Rt. %
Sales (₹ Cr.) 3,138 4.73,130 5.13,269 6.43,363 9.4
Adj EPS (₹) -1 -115.64.4 -28.84.8 -7.77.1 179.8
Op. Profit Mgn % 2.68 -182 bps4.39 -28 bps4.43 -27 bps4.66 -27 bps
Net Profit Mgn % -0.65 -350 bps1.78 -104 bps1.92 -32 bps2.84 186 bps

Management X-Ray of SIS:

Shareholding Pattern

JavaScript chart by amCharts 3.21.5
JavaScript chart by amCharts 3.21.5Promoters:72.09%Institutions:18.43%Non-Institutions:9.48%

Promoter's Holding & Share Pledging

JavaScript chart by amCharts 3.21.5Sep22Dec22Mar23Jun23Sep23Dec23Mar24Jun24Sep24Dec240%20%40%60%80%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Valuation of SIS

MRP
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MOS
spaceLock icon%
DP
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Base EPS
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DPS
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MRP: ₹ 0
DP: ₹0
Base EPS ₹:
DPS ₹:
MOS (%):
Expected EPS Growth Rate:
0%
Base 0%
50%
Expected Rate of Return:
0%
Base 0%
50%
Future PE:
0
Base 0
200
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max
YTD 1Y 3Y 5Y 10Y Max

Event Update

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Analyst's Notes

SIS Ltd: Q2 FY24 Result Update - 06 Nov 2023

Particulars

Q2FY24 (Rs. Crs)

YoY Trend

Comments

Revenue

3,074

+11%

The Security Solutions India/International  business grew by 13.2%/ 8.4% YoY to Rs. 1,302 Cr/ Rs. 1,259 Cr  respectively  
EBITDA

144

+32%

 
EBITDA Margin

5%

+ 70 bps

Margin came back to the normal trajectory of 5%
PAT

75

+12%

 

Decent results.

SIS: Q1FY24 Result Update - 07 Aug 2023

Particulars

Q1FY24

YoY Trend

Comments

Revenue

2,977

+11%

Security Solutions India business grew by 16%. Facility Management at 21% and Cash Management at 24%.

EBITDA

139

+15%

 

EBITDA Margin

4.7%

+20 Bps

The India Security business saw a significant improvement in EBITDA margins, increasing from 4% to 5.4%.

PAT

89

+9%

PAT growth impacted by lower tax in base quarter

Stable Results.

 

Initiating Coverage : SIS Ltd. - 16 Mar 2023

About the Company:

SIS is the largest private security services provider in India, offering a range of services that includes Security Services, Facility Management Solutions (FMS), and Cash Management Services (CMS). Private security is a non-cyclical business, making it recession-proof. Furthermore, it has a unique advantage of long-term customer retention and stickiness, which provides strong visibility of future cash flows.

As the leader in the private security services industry in India and with a significant presence in international markets like Australia, Singapore, and New Zealand through acquisitions, SIS is well-positioned to capture the demand in the Asia Pacific region. The company can serve clients who prefer a single service provider for operations across multiple locations, thereby enhancing its competitiveness in the market.

SIS has a significant market presence across various geographies. In India alone, it provides services to over 8000 customers across 26,000 locations, while internationally, it caters to approximately 7500 clients.

We have a positive outlook on SIS due to the nature of its business, leadership position, growth prospects, and the robust demand for private security services both in India and globally.

Business of SIS can be analysed into 3 key verticals:

India Security Services Vertical:

According to projections, the security solutions market in India is expected to grow at a CAGR of 14%, and reach a market value of US$ 21 billion by 2024. SIS is placing increased emphasis on technology, which has become a critical component in the ramp-up of security solutions investments by customers.

Despite this growth potential, the Indian security solutions market is still dominated by unorganized players, controlling over 65% of the market. However, the trend is expected to change significantly in the foreseeable future, as brand preference for organized players increases. Although SIS is the largest security solutions provider in India, its current market share is in the single digits, indicating significant headroom for growth.

Segmental Performance:

Parameters

FY 2022 (Rs. Cr)

FY 2021 (Rs. Cr)

Y-o-Y % change

Revenue from Operations

3,857

3,488

10.60%

EBITDA

166

190

-12.80%

EBITDA (%)

4.3%

5.5%

 

Revenue Share in Overall Business (%)

38.3%

38.0%

 

EBITDA Share in Overall Business (%)

33.3%

36.5%

 

Security Services International:

The global security services market was valued at US$ 163 Billion in 2021, and it is expected to reach US$ 295 Billion by 2026(Source: Annual Report). This growth is expected to be driven by various factors, including increased spending on security solutions by public health sectors in multiple countries, a rise in security threats in commercial real estates, and an increase in property crime.

SIS has a significant presence in the global security services market with 8260 employees stationed abroad. It caters to 7472 customers and monitors 8145 sites, with 42% of its customers having been associated with SIS for over five years. The company operates in multiple countries, which it has acquired and operates under different names.

Australia
SIS’ subsidiary MSS Security is the largest security solutions company in Australia, holds an 18% market share in the country. Its operations span across various market segments such as arts, events and recreation, aviation, commercial property, data and communication, education, energy and resources, financial services, government, health, industrial and manufacturing, as well as maritime and logistics.

In addition, SIS has another subsidiary called Southern Cross Protection (SXP), which runs the largest national security patrol network in Australia. SXP's fleet of fully equipped vehicles and highly trained security patrol officers make it an ideal solution for customer sites such as shops, restaurants, and independent residences where deploying full-time security personnel may not be cost-effective.

New Zealand
Platform 4 Group (P4G) is a reputable security service provider based in New Zealand. It offers a comprehensive range of services to its private, commercial, and government clients, which include trained security guards, loss prevention officers, and event security teams. Its clientele spans across various industries, such as health facilities, retail centres, film studios, construction sites, and hospitality venues.


Singapore
Henderson Security Solutions is a prominent security firm in Singapore and is recognized as one of the largest in the country. It is a premium service provider that caters to a wide range of customer segments, including residential condominiums, public transport, and commercial spaces. With over 200 sites in Singapore, Henderson Security Solutions has established itself as a leader in the security industry.

At present all overseas business entities are 100% held by the SIS Group as it completed acquisition of P4G business in New Zealand and Henderson business in Singapore. Company ended the year with a monthly run-rate of 484 Cr in March 22 as against 416 Cr in March 21.

Segmental Performance:

Parameters

FY 2022 (Rs. Cr)

FY 2021 (Rs. Cr)

Y-o-Y % change

Revenue from Operations

4,840

4,530

6.80%

EBITDA

269

292

-7.70%

EBITDA (%)

5.6%

6.4%

 

Revenue Share in Overall Business (%)

48.1%

49.6%

 

EBITDA Share in Overall Business (%)

54.1%

56.1%

 

Facility Management Services:

Segmental Performance:

Parameters

FY 2022 (Rs. Cr)

FY 2021 (Rs. Cr)

Y-o-Y % change

Revenue from Operations

1,395

1,127

23.70%

EBITDA

64

39

61.40%

EBITDA (%)

4.6%

3.5%

 

Revenue Share in Overall Business (%)

13.9%

12.4%

 

EBITDA Share in Overall Business (%)

12.8%

7.6%

 

Cash Management:

SIS’s Cash Logistics business is a Joint Venture with Prosegur, A global leader in cash solutions wherein it has a 49% holding. It is the 2nd largest player in India (CMS being the first) with a diverse clientele and comprehensive solutions.

Financials

Click here to check 10 year financial X-Ray

About the Management:

Ravindra Kishore Sinha: Chairman and Promoter

Rituraj Kishore Sinha: Group Managing Director

Risks:

SIS has a history of big acquisitions, over the past years a lot of business expansion was done by acquisitions of market leaders in the respective geographies/segments. Any huge acquisition wherein the company overpays shall dent future prospects.

Promoters of the company have strong political connections which raises questions regarding potential corporate governance issues.

Key Ratios of SIS

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Company Name CMP(₹)
Change ₹(%)
Market Cap
Net Sales (₹ Cr.)
Latest EPS (₹)
Net Profit Margin %
Latest P/E
Latest P/BV
SIS 335.4 3.2 (1%) Small Cap 11,346 15.5 3 21.4 1.8
TeamLease Services 2,424 -7.5 (-0.3%) Small Cap 9,322 60.4 1.2 40.3 4.7
RattanIndia Ent 54.5 1.3 (2.4%) Small Cap 5,610 5.2 8.2 10.3 5.1
Updater Services 344.1 7.7 (2.3%) Small Cap 1,417 8.5 2.7 39.5 2.8
Mach Confer. & Event 225.4 1.5 (0.7%) Small Cap 237 12.5 10.9 18 2.8
BLS Internatl.Serv 442.1 21.6 (5.1%) Small Cap 119 1 31.7 430.9 178.7
Praveg 695 13.7 (2%) Small Cap 91.4 4.6 13.8 148.9 4.1
Sagarsoft (India) 190 2 (1%) Small Cap 55.1 7.9 6.3 23.9 2.2
Exhicon Events Media 323.5 -11.5 (-3.4%) Small Cap 41.2 4.9 15.3 68.8 5.9
BLS E-Services 181.3 -1.1 (-0.6%) Small Cap 39.7 2.4 18.2 75.8 4.1
Shows rows:

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales3,5513,8364,3875,8337,0938,4859,12710,05911,34612,261
Operating Expenses 3,3913,7034,1695,5226,7297,9878,6079,56310,85411,743
Manufacturing Costs2622783914151,1621,3411,1161,014
Material Costs1211163663838080107145
Employee Cost 2,8923,1453,7034,7665,7576,8967,0567,8119,20110,050
Other Costs 225270447711895992308331430535
Operating Profit 159133218312365498521496492518
Operating Profit Margin (%) 4.5%3.5%5.0%5.3%5.1%5.9%5.7%4.9%4.3%4.2%
Other Income 151411371875478553344
Interest 485277929415212798115148
Depreciation 4543365666128113112135166
Exceptional Items 000-100-276000
Profit Before Tax 8250117187223289482344285272
Tax 3319124-56411518-6282
Profit After Tax 4931116163228225367326347190
PAT Margin (%) 1.4%0.8%2.6%2.8%3.2%2.7%4.0%3.2%3.1%1.5%
Adjusted EPS (₹)4.63.28.111.114.715.424.822.223.813.2
Dividend Payout Ratio (%)26%62%0%16%12%13%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 3884495831,0131,2281,3631,8232,0492,3002,374
Share Capital 666973737374747372
Reserves 3824425149401,1551,2901,7491,9752,2272,302
Minority Interest76201002300
Debt3954006275369501,1721,1651,0961,469934
Long Term Debt200179373376614630742607803230
Short Term Debt195221254160336542422489665704
Trade Payables43333981665466586485
Others Liabilities 5215317051,0961,8561,9021,9251,7261,6332,378
Total Liabilities 1,4231,4151,9552,7274,1014,4924,9814,9325,4655,771

Fixed Assets

Gross Block4514894297931,7011,8962,1922,3452,4642,643
Accumulated Depreciation12318130761272376327448371,038
Net Fixed Assets3293083987171,5751,6591,5601,6021,6271,605
CWIP 704591317234135
Investments 1012999212193949698116
Inventories71314253431343131
Trade Receivables3122894216249531,1751,2431,3911,6781,886
Cash Equivalents 3743494295435436141,088738751741
Others Assets3844566007318759049491,0471,2391,358
Total Assets 1,4231,4151,9552,7274,1014,4924,9814,9325,4655,771

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 7173100215205201640233171394
PBT 8250110187210289483344285272
Adjustment 10412511512417525064185241341
Changes in Working Capital -57-46-49-26-74-210154-90-261-175
Tax Paid -57-56-77-71-105-128-60-206-94-44
Cash Flow From Investing Activity -110-51-289-116-522-276-164-122-148-104
Capex -46-67-65-52-83-78-46-102-119-156
Net Investments -723-152-76-406-211-404-48-5816
Others 813-7211-3413287282935
Cash Flow From Financing Activity 152-6419399127-14144-351-229-340
Net Proceeds from Shares 500341001000
Net Proceeds from Borrowing 156-18173-119100000
Interest Paid -46-52-75-88-72-99-91-93-107-141
Dividend Paid -17-27-5-14-11-550000
Others 5334100-12811912134-258-122-200
Net Cash Flow 113-424198-191-216520-240-206-50
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)12.447.3122.4520.4320.3717.423.0216.8415.948.13
ROCE (%)17.4911.8417.7519.4716.6318.2621.0513.4311.0210.8
Asset Turnover Ratio2.792.72.62.492.081.971.932.032.182.18
PAT to CFO Conversion(x)1.452.350.861.320.90.891.740.710.492.07
Working Capital Days
Receivable Days29293033414648484953
Inventory Days1001111111
Payable Days1,0541,307816604428263273285209187

SIS Ltd Stock News

SIS Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of SIS on 31-Jan-2025 14:05 is ₹335.4.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 31-Jan-2025 14:05 the market cap of SIS stood at ₹4,789.
The latest P/E ratio of SIS as of 31-Jan-2025 14:05 is 34.00.
The latest P/B ratio of SIS as of 31-Jan-2025 14:05 is 4.19.
The 52-week high of SIS is ₹530.0 and the 52-week low is ₹302.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of SIS is ₹4,817 ( Cr.) .

About SIS Ltd

Security and Intelligence Services Limited was incorporated as ‘Security and Intelligence Services (Eastern India) Private Limited’, on January 2, 1985 as private limited company under the Companies Act, 1956, with the Registrar of Companies at Patna. The name of company was changed to ‘Security and Intelligence Services (India) Private Limited’ and a fresh certificate of incorporation was issued by the RoC on May 27, 1992. Subsequently, the name of company was changed to ‘Security and Intelligence Services (India) Limited’ upon conversion of company into a public limited company and a fresh certificate of incorporation issued by the RoC on July 29, 1993.

Business area of the company

SIS provides security, facility management and cash logistics services, which are essential to the functioning of a vibrant and healthy economy. The company has emerged as a trusted leader across these business segments in India and other geographies in the Asia Pacific region.

Security Services

  • Security Services - India
  • Security Services - International
  • Electronic Security Solutions
  • Alarm, Monitoring and Response

Awards

  • 2014: The company was awarded by Wipro as the ‘Best Security Services Partner’ and was recognised for maintaining high levels of performance and consistent support in providing security services.
  • 2015: MSS Security received the Australian Business award for Human Resource Management and was recognised for its outstanding achievements in human resource management.
  • 2016: MSS Security won Australia India Business Council award of excellence and Innovative HR Team 2016 by HRD - Human Resources Director magazine.

Milestones

  • 1986: Graduate Trainee Officer (GTO) programme initiated to build a cadre of security officers and managers
  • 1989: SIS develops DOS based software program for payroll, on 486 computers
  • 1990: Opens Branch office in Kolkata, West Bengal
  • 1991: SIS employee count crosses 1000
  • 1995: SIS establishes operations in North India. Regional office established in New Delhi
  • 1997: South India operations commissioned, regional office inaugurated in Bangalore
  • 1998: First security company in India to receive ISO certification
  • 2002: SIS revenue crosses Rs 25 crore
  • 2004: First integrated end to end ERP platform – ERSys – is developed by SIS
  • 2005: SIS family crosses 10,000 strength
  • 2006: SIS ventures into Cash Logistics segment
  • 2007: SIS sets up operations in West India.Regional office setup in Mumbai.DE Shaw, one of the largest hedge funds in the world invests in SIS
  • 2008: SIS acquires Australia’s largest security company Chubb Security
  • 2009: SIS group consolidated revenues crosses 1000 crore. SIS enters Facility Management space, partners with ServiceMaster Corporation, USA
  • 2010: Electronic security arm of SIS group launched under the TECH SIS brand
  • 2011: Joint ventures with Prosegur, Spain. SIS Cash Services is branded as SIS Prosegur
  • 2012: Joint venture with TERMINIX, USA. SIS enters Pest Control Segment operating under TERMINIXSIS brand. SIS workforce crosses 50,000 mark.
  • 2013: CX Partners (Private Equity) invests in SIS, marking the largest PE investment in security sector
  • 2014: SIS family celebrates 40th anniversary. Revenue crosses 2500 crore. SIS acquires ISS cash business, rebrands it as SISCO
  • 2015: Employee count crosses 100,000. 1st in Industry-automated recruitment quality control kiosk launched
  • 2016: SIS revenue crosses Rs 4000 crore. SIS acquires Dusters becomes India’s 4th largest Facility Management provider
  • 2017: PO-SIS Group: India’s 1st Security, Cash Logistics & Facility Management Company to be listed.
  • 2017: Successful acquisition of SXP – Australia’s largest mobile patrol service company.
  • 2017: Launched VProtect – India’s first wireless alarm, monitoring and response service.
  • 2018: Consolidated leadership position in India
  • 2018: Security & FM - acquired SLV, Uniq & Rare.
  • 2019: Crossed 200,000 in manpower and $1 Bn in revenues.
  • 2019: Consolidated APAC leadership in Security - acquired Henderson& P4G.
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