ScoreWhy is Firstsource Solutions Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.46 times
2
Flat results in Dec 24
- INTEREST(HY) At Rs 73.65 cr has Grown at 26.70%
- ROCE(HY) Lowest at 12.62 %
- OPERATING PROFIT TO INTEREST (Q) Lowest at 8.08 times
3
Stock is technically in a Mildly Bullish range
- The stocks MACD and KST technical factors are also Bullish
4
With ROCE of 12.8, it has a Attractive valuation with a 4.1 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 58.89%, its profits have risen by 7.2% ; the PEG ratio of the company is 5.8
5
High Institutional Holdings at 31.89%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.66% over the previous quarter.
6
Market Beating Performance
- Even though the market (BSE 500) has generated negative returns of -1.03% in the last 1 year, the stock has been able to generate 58.89% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Firstsour.Solu. should be less than 10%
- Overall Portfolio exposure to BPO/ITeS should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in BPO/ITeS)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Firstsour.Solu. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Firstsour.Solu.
56.22%
1.19
49.48%
SENSEX
0.45%
0.03
14.48%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.54%
EBIT Growth (5y)
12.97%
EBIT to Interest (avg)
8.55
Debt to EBITDA (avg)
1.74
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
1.20
Tax Ratio
18.76%
Dividend Payout Ratio
47.39%
Pledged Shares
0
Institutional Holding
31.89%
ROCE (avg)
13.82%
ROE (avg)
14.86%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
39
Industry P/E
33
Price to Book Value
5.65
EV to EBIT
29.25
EV to EBITDA
21.35
EV to Capital Employed
4.06
EV to Sales
3.21
PEG Ratio
5.78
Dividend Yield
1.28%
ROCE (Latest)
12.84%
ROE (Latest)
13.74%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend17What is working for the Company
NET SALES(Q)
Highest at Rs 2,102.38 cr
PBDIT(Q)
Highest at Rs 317.66 cr.
PBT LESS OI(Q)
Highest at Rs 193.94 cr.
PAT(Q)
Highest at Rs 153.27 cr.
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 215.88 cr
OPERATING PROFIT TO NET SALES(Q)
Highest at 15.11%
EPS(Q)
Highest at Rs 2.30
-13What is not working for the Company
INTEREST(HY)
At Rs 73.65 cr has Grown at 26.70%
ROCE(HY)
Lowest at 12.62 %
OPERATING PROFIT TO INTEREST (Q)
Lowest at 8.08 times
DEBT-EQUITY RATIO(HY)
Highest at 0.58 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.75 times
Loading Valuation Snapshot...
Here's what is working for Firstsour.Solu.
Net Sales - Quarterly
Highest at Rs 2,102.38 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 317.66 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 193.94 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 153.27 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Net Sales - Quarterly
At Rs 2,102.38 cr has Grown at 20.4 %
over average Net Sales of the previous four quarters of Rs 1,745.89 CrMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 15.11%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 193.94 cr has Grown at 21.0 %
over average PBT of the previous four quarters of Rs 160.27 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.30
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 215.88 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Firstsour.Solu.
Operating Profit to Interest - Quarterly
Lowest at 8.08 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest - Quarterly
Highest at Rs 39.32 cr
in the last five quarters and Increased by 14.54 % (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.58 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 4.75 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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