ScoreWhy is Firstsource Solutions Ltd ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.50 times
2
Healthy long term growth as Operating profit has grown by an annual rate 15.25%
3
With a growth in Net Profit of 6.01%, the company declared Very Positive results in Sep 25
- The company has declared positive results for the last 3 consecutive quarters
- OPERATING CF(Y) Highest at Rs 503.63 Cr
- NET SALES(Q) Highest at Rs 2,312.22 cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 8.79 times
4
With ROCE of 15.4, it has a Attractive valuation with a 4.2 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 -7.68%, its profits have risen by 23.4% ; the PEG ratio of the company is 1.6
5
High Institutional Holdings at 33.88%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
With its market cap of Rs 24,675 cr, it is the biggest company in the sector and constitutes 40.59% of the entire sector
- Its annual Sales of Rs 8,793.71 are 43.23% of the industry
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Firstsour.Solu. should be less than 10%
- Overall Portfolio exposure to Commercial Services & Supplies should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Commercial Services & Supplies)
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, Low Return
Absolute
Risk Adjusted
Volatility
Firstsour.Solu.
-7.73%
-0.19
39.70%
Sensex
4.86%
0.41
11.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.94%
EBIT Growth (5y)
15.25%
EBIT to Interest (avg)
8.03
Debt to EBITDA (avg)
1.75
Net Debt to Equity (avg)
0.47
Sales to Capital Employed (avg)
1.24
Tax Ratio
20.25%
Dividend Payout Ratio
47.39%
Pledged Shares
0
Institutional Holding
33.88%
ROCE (avg)
14.31%
ROE (avg)
15.29%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
37
Industry P/E
35
Price to Book Value
5.65
EV to EBIT
26.96
EV to EBITDA
19.47
EV to Capital Employed
4.16
EV to Sales
3.04
PEG Ratio
1.62
Dividend Yield
1.15%
ROCE (Latest)
15.42%
ROE (Latest)
15.15%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Sideways
Bullish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend27What is working for the Company
OPERATING CF(Y)
Highest at Rs 503.63 Cr
NET SALES(Q)
Highest at Rs 2,312.22 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 8.79 times
PBDIT(Q)
Highest at Rs 376.04 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 16.26%
PBT LESS OI(Q)
Highest at Rs 223.71 cr.
PAT(Q)
Highest at Rs 177.99 cr.
DPS(Y)
Highest at Rs 4.00
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 2,327.80 cr
EPS(Q)
Highest at Rs 2.58
-4What is not working for the Company
INTEREST(9M)
At Rs 128.82 cr has Grown at 22.39%
Loading Valuation Snapshot...
Here's what is working for Firstsour.Solu.
Operating Cash Flow - Annually
Highest at Rs 503.63 Cr and Grown
each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (Rs Cr)
Net Sales - Quarterly
Highest at Rs 2,312.22 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 8.79 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Operating Profit (PBDIT) - Quarterly
Highest at Rs 376.04 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at 16.26% and Grown
each quarter in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 223.71 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 177.99 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 2.58
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 2,327.80 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Dividend per Share (DPS) - Annually
Highest at Rs 4.00
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (Rs)
Here's what is not working for Firstsour.Solu.
Interest - Nine Monthly
At Rs 128.82 cr has Grown at 22.39%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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