Labour laws change and Pradhan Mantri Viksit Bharat Rozgar Yojana are 2 big tailwinds for the sector in the medium to long term. I feel the sector should start showing higher growth along with some margin uptick FY27 onwards, as the shift from unorganized to organized plays out.
People who have been tracking this sector for a long time, please provide your views.
Great Insight. I ignore those red flags & pay the price for it !!
SIS(Listed Co) acquired around 4% stake in Updater Services Ltd, Both have same lines of business as well.
SIS also have decent cash on its books. My assumption is they will soon give open offer to Updater Services.
Not invested, Only Studying!
Thanks for this info.
Listed company buys stake in UDS is good thing in terms of atleast we can have some confidence that no further corporate governance issues will come bcoz they might have done due diligence before buying 4% stake & also SIS is in similar business, they know UDS better than us.
FY26 year was quite challanging for UDS. Problem in BSS business, on off in AVON, on off laour code provision etc. However Q4 result suggests that BSS is consolidating & we shouldn’t expect further sales dip in it. However IFM business is not growing well (which they guided a year ago like 3 times of GDP, now guiding for high single digit growth).
Bandhan mutual fund also bought it recently.
Valuation is cheaper considering no further suprises from management & governance.
They are holding 450 cr. cash & investment at market cap of 1300 cr. & generating good cash flow. How they utilize these 450 cr. is also very important.
About Open offer - I don’t think so. Promoter already have 59% stake (Infact they increased stake), they won’t allow hostile takeover by other company.
Any fellow member compared UDS vs Bluspring.
It seems Bluspring also in same line of business, and with recent acquisitions & contract wins looks promising on sales growth side in FY2027 onwards.
As a recently listed company, Bluspring currently has limited public financial data available and is still operating at a net loss.
