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Last Updated on: 21 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 532809 | NSE: FSL

Firstsource Solutions Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:34 am

Market Cap 25,262 Cr.
Current Price 357
High / Low 392/176
Stock P/E47.2
Book Value 55.2
Dividend Yield0.98 %
ROCE15.4 %
ROE14.6 %
Face Value 10.0
PEG Ratio6.33

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
N2N Technologies Ltd 5.83 Cr. 18.0 33.0/18.0 16.80.00 %0.69 %0.63 % 10.0
eMudhra Ltd 7,829 Cr. 945 1,024/41596.9 83.30.13 %17.7 %14.4 % 5.00
BNR Udyog Ltd 19.6 Cr. 65.4 118/51.726.9 35.70.00 %63.6 %53.8 % 10.0
BGIL Films & Technologies Ltd 7.22 Cr. 6.37 10.3/3.28 16.90.00 %4.44 %3.46 % 10.0
Aurum Proptech Ltd 644 Cr. 220 250/125 97.40.00 %12.0 %27.1 % 5.00
Industry Average10,078.58 Cr721.1836.18190.100.42%17.89%16.59%7.60

All Competitor Stocks of

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,4851,4291,4641,5441,4721,4881,5051,5571,5291,5401,5971,6701,791
Expenses1,2461,1901,2261,2991,2911,2961,2951,3131,2891,3111,3591,4201,521
Operating Profit238239238245181192210244240229237250270
OPM %16%17%16%16%12%13%14%16%16%15%15%15%15%
Other Income-010-064962132171532
Interest15161519192020212526252732
Depreciation58606270646669646165666773
Profit before tax165164161156105155184172155154161159167
Tax %19%18%16%15%19%16%14%18%19%18%20%16%19%
Net Profit13413513513285129158141126127129134135
EPS in Rs1.931.941.941.901.221.852.262.021.791.801.831.901.92

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales2,8193,1063,0353,2173,5563,5353,8264,0995,0785,9216,0226,3366,598
Expenses2,5252,7352,6452,8193,1093,0643,2743,4454,2394,9395,1655,3425,612
Operating Profit293371390398447471552654839982858995986
OPM %10%12%13%12%13%13%14%16%17%17%14%16%15%
Other Income462793549-11411313737
Interest92948061545346838786110142110
Depreciation88767261596674185206249263260272
Profit before tax159203244286337358436394432647615630642
Tax %8%5%4%9%17%9%13%14%16%17%16%18%
Net Profit146193234261279327378340362537514515524
EPS in Rs2.232.923.523.874.114.765.474.905.207.697.337.317.45
Dividend Payout %0%0%0%0%0%32%37%51%58%45%47%47%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)32.19%21.24%11.54%6.90%17.20%15.60%-10.05%6.47%48.34%-4.28%0.19%
Change in YoY Net Profit Growth (%)0.00%-10.95%-9.71%-4.64%10.31%-1.61%-25.65%16.52%41.87%-52.63%4.48%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:7%
5 Years:11%
3 Years:8%
TTM:14%
Compounded Profit Growth
10 Years:11%
5 Years:7%
3 Years:4%
TTM:-3%
Stock Price CAGR
10 Years:27%
5 Years:54%
3 Years:31%
1 Year:93%
Return on Equity
10 Years:15%
5 Years:15%
3 Years:16%
Last Year:15%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 12:31 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital658660666673681687691694696697697697697
Reserves1,0561,4321,4221,1041,3471,6652,0302,0722,1032,3362,6703,0033,202
Borrowings1,2761,1891,0318919656675571,3561,1941,7841,3931,5332,252
Other Liabilities3824093062863163523523937897967857021,248
Total Liabilities3,3723,6893,4272,9543,3093,3713,6304,5144,7835,6135,5455,9367,399
Fixed Assets2,5142,7302,4442,0222,0682,0802,2232,8712,9983,7443,7163,8534,710
CWIP208242200331774
Investments357385163341341294130714235
Other Assets8539539018451,0741,2551,2711,6301,6911,7361,7542,0242,580
Total Assets3,3723,6893,4272,9543,3093,3713,6304,5144,7835,6135,5455,9367,399

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +199396246297200315400410976704795645
Cash from Investing Activity +583-13-104-101-23396-20310-344-59417-57
Cash from Financing Activity +-881-286-246-2074-327-273-277-689-158-743-564
Net Cash Flow-9896-105-11-3084-76143-58-496923

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow292.00370.00389.00-493.00-518.00-196.00-5.00653.00838.00981.00857.00994.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days503535343139375061596367
Inventory Days
Days Payable
Cash Conversion Cycle503535343139375061596367
Working Capital Days0-65-10-71314717352737
ROCE %7%9%10%12%14%13%15%13%16%17%15%15%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%
FIIs10.64%9.60%7.79%7.95%8.41%8.41%8.95%9.99%10.21%9.89%9.59%9.36%
DIIs13.79%14.78%14.75%14.57%13.26%14.18%15.06%15.17%16.22%18.16%19.27%19.52%
Public19.45%19.62%21.36%21.50%22.25%21.38%20.09%19.12%17.91%16.86%16.15%16.15%
Others2.46%2.34%2.44%2.32%2.42%2.37%2.24%2.06%2.00%1.44%1.35%1.32%
No. of Shareholders2,78,4352,94,1003,20,4993,28,0013,41,6633,28,7873,09,8912,95,2832,87,1852,75,2332,66,8742,58,789

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan60,176,7644.011263.474,000,0002024-12-181404.42%
Tata Digital India Fund10,123,1122.08212.544,000,0002024-12-18153.08%
SBI Technology Opportunities Fund7,645,8874.21160.534,000,0002024-12-1891.15%
ICICI Prudential Technology Fund7,407,7891.23155.534,000,0002024-12-1885.19%
Mahindra Manulife Small Cap Fund4,000,0001.8483.984,000,0002024-12-180%
Aditya Birla Sun Life Digital India Fund3,153,8561.4266.224,000,0002024-12-18-21.15%
UTI Small Cap Fund2,883,5671.4360.544,000,0002024-12-18-27.91%
Axis Small Cap Fund2,705,9990.2656.824,000,0002024-12-18-32.35%
ICICI Prudential Smallcap Fund2,535,1260.6353.234,000,0002024-12-18-36.62%
Sundaram Small Cap Fund2,058,5711.343.224,000,0002024-12-18-48.54%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)7.527.557.905.314.90
Diluted EPS (Rs.)7.347.327.625.134.90
Cash EPS (Rs.)11.1211.1511.288.167.57
Book Value[Excl.RevalReserv]/Share (Rs.)53.1048.3143.5240.2239.87
Book Value[Incl.RevalReserv]/Share (Rs.)53.1048.3143.5240.2239.87
Revenue From Operations / Share (Rs.)90.9186.4084.9572.9559.07
PBDIT / Share (Rs.)14.2513.7313.7811.579.19
PBIT / Share (Rs.)10.529.9610.208.616.52
PBT / Share (Rs.)9.038.839.286.205.68
Net Profit / Share (Rs.)7.387.377.705.204.89
NP After MI And SOA / Share (Rs.)7.387.377.715.204.89
PBDIT Margin (%)15.6715.8916.2215.8615.55
PBIT Margin (%)11.5611.5212.0011.7911.04
PBT Margin (%)9.9310.2110.928.509.61
Net Profit Margin (%)8.128.539.067.128.28
NP After MI And SOA Margin (%)8.128.539.077.128.28
Return on Networth / Equity (%)13.9115.2517.7112.9212.28
Return on Capital Employeed (%)16.5016.9117.0317.4713.89
Return On Assets (%)8.469.069.417.487.40
Long Term Debt / Equity (X)0.000.040.090.030.00
Total Debt / Equity (X)0.210.240.330.180.30
Asset Turnover Ratio (%)1.081.060.420.360.31
Current Ratio (X)0.930.900.920.870.82
Quick Ratio (X)0.930.900.920.870.82
Dividend Payout Ratio (NP) (%)46.7446.4144.3656.33110.75
Dividend Payout Ratio (CP) (%)31.0430.6930.3035.8771.67
Earning Retention Ratio (%)53.2653.5955.6443.67-10.75
Cash Earning Retention Ratio (%)68.9669.3169.7064.1328.33
Interest Coverage Ratio (X)9.6112.1215.0215.4210.93
Interest Coverage Ratio (Post Tax) (X)5.987.519.3910.136.82
Enterprise Value (Cr.)14375.878021.549632.588313.042554.78
EV / Net Operating Revenue (X)2.271.331.631.640.62
EV / EBITDA (X)14.478.3810.0310.324.01
MarketCap / Net Operating Revenue (X)2.171.221.471.560.46
Retention Ratios (%)53.2553.5855.6343.66-10.75
Price / BV (X)3.722.182.872.830.68
Price / Net Operating Revenue (X)2.171.221.471.560.46
EarningsYield0.030.060.060.040.17

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 384.12

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 21, 2024, is Undervalued by 7.60% compared to the current share price 357.00

Intrinsic Value of as of December 21, 2024 is: 412.76

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 21, 2024, is Undervalued by 15.62% compared to the current share price 357.00

Last 5 Year EPS CAGR: 7.46%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 14.75, which is a positive sign.
  2. The company has higher reserves (1,957.08 cr) compared to borrowings (1,237.54 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (4.00 cr) and profit (414.08 cr) over the years.
  1. The stock has a low average ROCE of 13.00%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 46.75, which may not be favorable.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 8.12%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 16.5% (Industry Average ROCE: 17.89%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.91% (Industry Average ROE: 16.59%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 5.98
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.93
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 47.2 (Industry average Stock P/E: 36.18)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.21
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Firstsource Solutions Ltd. is a Public Limited Listed company incorporated on 06/12/2001 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L64202MH2001PLC134147 and registration number is 134147. Currently Company is involved in the business activities of Other information service activities. Company’s Total Operating Revenue is Rs. 1592.01 Cr. and Equity Capital is Rs. 696.99 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Enabled Services5th Floor, Paradigm �B� Wing, Mindspace, Link Road, Mumbai Maharashtra 400064complianceofficer@firstsource.com
http://www.firstsource.com
Management
NamePosition Held
Dr. Sanjiv GoenkaChairman
Mr. Shashwat GoenkaVice Chairman
Mr. Ritesh IdnaniManaging Director & CEO
Mr. Subrata TalukdarNon Exe.Non Ind.Director
Mr. Pradip Kumar KhaitanNon Exe.Non Ind.Director
Mr. Sunil MitraInd. Non-Executive Director
Ms. Vanita UppalInd. Non-Executive Director
Mr. Utsav ParekhInd. Non-Executive Director
Ms. Rekha SethiInd. Non-Executive Director
Dr. Rajiv KumarInd. Non-Executive Director
Mr. T C Suseel KumarInd. Non-Executive Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹384.12, which is 7.60% higher than the current market price of ₹357.00. The stock has a market capitalization of 25,262 Cr. and recorded a high/low of 392/176 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹3,202 Cr and total liabilities of ₹7,399 Cr.

What is the Market Cap of ?

The Market Cap of is 25,262 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 357.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 392/176.

What is the Stock P/E of ?

The Stock P/E of is 47.2.

What is the Book Value of ?

The Book Value of is 55.2.

What is the Dividend Yield of ?

The Dividend Yield of is 0.98 %.

What is the ROCE of ?

The ROCE of is 15.4 %.

What is the ROE of ?

The ROE of is 14.6 %.

What is the Face Value of ?

The Face Value of is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE