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
With a growth in Operating Profit of 8.41%, the company declared Very Positive results in Dec 25
- The company has declared positive results for the last 4 consecutive quarters
- ROCE(HY) Highest at 14.81%
- NET SALES(Q) Highest at Rs 2,443.08 cr
- OPERATING PROFIT TO INTEREST(Q) Highest at 9.31 times
3
With ROCE of 15.4, it has a Attractive valuation with a 3.5 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 -17.37%, its profits have risen by 26.3% ; the PEG ratio of the company is 1.1
4
High Institutional Holdings at 34.39%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 0.51% over the previous quarter.
5
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 7.71% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.37% returns
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.
-17.37%
-0.48
36.39%
Sensex
7.07%
0.61
11.53%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
14.23%
EBIT Growth (5y)
14.72%
EBIT to Interest (avg)
7.77
Debt to EBITDA (avg)
1.75
Net Debt to Equity (avg)
0.47
Sales to Capital Employed (avg)
1.24
Tax Ratio
20.37%
Dividend Payout Ratio
47.39%
Pledged Shares
0
Institutional Holding
34.39%
ROCE (avg)
14.31%
ROE (avg)
15.29%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
29
Price to Book Value
4.71
EV to EBIT
21.54
EV to EBITDA
15.50
EV to Capital Employed
3.52
EV to Sales
2.48
PEG Ratio
1.10
Dividend Yield
1.38%
ROCE (Latest)
15.42%
ROE (Latest)
15.15%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend22What is working for the Company
ROCE(HY)
Highest at 14.81%
NET SALES(Q)
Highest at Rs 2,443.08 cr
OPERATING PROFIT TO INTEREST(Q)
Highest at 9.31 times
PBDIT(Q)
Highest at Rs 402.65 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at 16.48%
PBT LESS OI(Q)
Highest at Rs 248.21 cr.
PAT(Q)
Highest at Rs 199.78 cr.
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 232.78 cr
-2What is not working for the Company
EPS(Q)
Lowest at Rs 1.73
Loading Valuation Snapshot...
Here's what is working for Firstsour.Solu.
Net Sales - Quarterly
Highest at Rs 2,443.08 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 9.31 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 402.65 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 16.48% 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 248.21 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 199.78 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term PAT trend is very positive
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 248.21 cr has Grown at 20.5% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 205.91 CrMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 199.78 cr has Grown at 20.8% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 165.32 CrMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 232.78 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.
Earnings per Share (EPS) - Quarterly
Lowest at Rs 1.73
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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