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Team Lease Services Ltd
Miscellaneous | NSE : TEAMLEASE
TeamLease Ltd (TLL) is one of the leading providers of human resource services in the organised segment with ~7% share in flexi staffing.
TeamLease reported decent margins in Q4FY23 results.
TeamLease’s share price has declined by ~0.8x over the past five years (from ~₹ 2753 in May 2018 to ~₹ 2267 in May 2023).
We value TeamLease at ₹ 2370 i.e. 25x P/E on FY25E.
Apart from Teamlease, in our IT coverage we like Newgen.
| Particulars (₹ crore) | Amount |
|---|---|
| Market Capitalization | 5,451.9 |
| Total Debt | 19.3 |
| Cash and Investment | 438.8 |
| EV | 3,375.3 |
| 52 week H/L (₹) | 3,526.2/2,007.3 |
| Equity Capital | 17.1 |
| Face Value (₹) | 10.0 |
| Particulars | FY20 | FY21 | FY22 | FY23 | 5 year CAGR (FY18-23) | FY24E | FY25E | 2 year CAGR (FY23-25E) |
|---|---|---|---|---|---|---|---|---|
| Net Sales | 5,200.7 | 4,881.5 | 6,479.8 | 7,870.0 | 16.8 | 8,312.1 | 9,079.0 | 7.4 |
| EBITDA | 95.1 | 98.5 | 142.4 | 122.3 | 12.2 | 150.4 | 195.2 | 26.4 |
| EBITDA Margins (%) | 1.8 | 2.0 | 2.2 | 1.6 | - | 1.8 | 2.2 | - |
| Net Profit | 35.0 | 77.5 | 38.4 | 111.3 | 8.5 | 123.9 | 161.5 | 20.4 |
| EPS (|) | 20.5 | 45.3 | 22.5 | 65.1 | - | 72.5 | 94.5 | - |
| P/E (x) | 110.8 | 50.0 | 100.9 | 34.8 | - | 31.3 | 24.0 | - |
| RoCE (%) | 15.0 | 15.2 | 16.5 | 14.7 | - | 13.8 | 15.2 | - |
| RoE (%) | 6.5 | 11.5 | -4.7 | 13.3 | - | 13.1 | 14.6 | - |
RATING RATIONALE
ICICI Direct endeavours to provide objective opinions and recommendations. ICICI Direct assigns ratings to its stocks according to their notional target price vs. current market price and then categorizes them as Buy, Hold, Reduce and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts valuation for a stock
Buy: >15%
Hold: -5% to 15%;
Reduce: -15% to -5%;
Sell: <-15%
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Pankaj Pandey |
Head – Research |
pankaj.pandey@icicisecurities.com |
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ICICI Direct Research Desk, ICICI Securities Limited, Third Floor, Brillanto House, Road No 13, MIDC, Andheri (East) Mumbai – 400 093 |
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research@icicidirect.com |
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