Firstsource Solutions Ltd Falls to 52-Week Low of Rs.245.5

Stock Price Movement and Market Context

On 17 Feb 2026, Firstsource Solutions Ltd’s share price reached an intraday low of Rs.245.5, the lowest level recorded in the past year. Despite this, the stock managed to recover slightly during the trading session, touching an intraday high of Rs.252.9, representing a 2.1% gain from the low point. The day’s overall change was a positive 1.59%, aligning with the sector’s performance.

However, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downtrend. This technical positioning indicates that the stock has been under pressure for an extended period, with limited short-term momentum.

In comparison, the Sensex opened flat and traded marginally higher by 0.02% at 83,291.04 points, remaining 3.44% below its 52-week high of 86,159.02. The broader market’s relative stability contrasts with Firstsource’s underperformance, highlighting company-specific factors influencing the stock.

Performance Over the Past Year

Firstsource Solutions Ltd has experienced a notable decline over the last 12 months, with its share price falling by 27.06%. This contrasts with the Sensex’s positive return of 9.60% and the BSE500’s 13.18% gain over the same period. The stock’s underperformance is significant, especially given the company’s position as the largest entity in its sector by market capitalisation.

The stock’s 52-week high was Rs.403.8, indicating a substantial drop of nearly 39% from that peak to the current 52-week low. This decline reflects a combination of market dynamics and company-specific valuation adjustments.

Financial Metrics and Valuation

Despite the share price decline, Firstsource Solutions Ltd continues to demonstrate solid financial fundamentals. The company reported its highest quarterly net sales at Rs.2,443.08 crores, alongside a robust operating profit to interest ratio of 9.31 times, underscoring its capacity to cover interest expenses comfortably.

The company’s Return on Capital Employed (ROCE) for the half-year stands at 14.81%, with an annualised figure of 15.4%, reflecting efficient utilisation of capital. Additionally, the firm maintains a low Debt to EBITDA ratio of 1.50 times, indicating prudent leverage management and a strong ability to service debt obligations.

Valuation metrics suggest the stock is trading at an attractive level relative to its peers, with an Enterprise Value to Capital Employed ratio of 3. This discount to historical peer valuations may be a factor in the stock’s current price, despite the recent downward trend.

Institutional Holdings and Market Position

Institutional investors hold a significant stake in Firstsource Solutions Ltd, accounting for 34.39% of the company’s equity. This represents an increase of 0.51% from the previous quarter, signalling continued confidence from large investors with access to detailed fundamental analysis.

With a market capitalisation of Rs.17,513 crores, Firstsource is the largest company in the Commercial Services & Supplies sector, constituting 38.10% of the sector’s total market value. Its annual sales of Rs.9,134.41 crores represent 43.63% of the industry’s revenue, underscoring its dominant market position.

Sector and Market Dynamics

The Commercial Services & Supplies sector has faced mixed conditions over the past year, with some companies experiencing volatility due to changing demand patterns and competitive pressures. Firstsource’s stock performance reflects these sectoral headwinds, compounded by its own valuation adjustments.

While the broader market indices have shown resilience, led by mega-cap stocks, Firstsource’s share price has not mirrored this trend, highlighting the divergence between sector-specific factors and overall market sentiment.

Rating and Outlook

MarketsMOJO currently assigns Firstsource Solutions Ltd a Mojo Score of 50.0 with a Mojo Grade of Hold, reflecting a recent downgrade from a Buy rating on 29 Dec 2025. This adjustment recognises the stock’s recent price weakness and relative underperformance, balanced against its solid financial metrics and sector leadership.

The company’s PEG ratio stands at 0.9, indicating that its price-to-earnings growth is below 1, which can be interpreted as a valuation discount relative to its earnings growth of 26.3% over the past year. This metric suggests that while the stock price has declined, the company’s profitability has improved.

Overall, Firstsource Solutions Ltd remains a significant player within its sector, with strong fundamentals and institutional backing. The recent 52-week low price of Rs.245.5 marks a notable point in its share price trajectory, reflecting a combination of market and company-specific factors.

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