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Last Updated on: 19 June, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Firstsource Solutions Ltd

About the Company - Firstsource Solutions Ltd

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. Vipul KhannaManaging Director & CEO
Mr. Subrata TalukdarNon Executive Director
Mr. Pradip Kumar KhaitanNon Executive Director
Mr. Sunil MitraInd. Non-Executive Director
Mr. Anjani K AgrawalInd. Non-Executive Director
Mr. Pratip ChaudhuriInd. Non-Executive Director
Ms. Vanita UppalInd. Non-Executive Director
Mr. Utsav ParekhInd. Non-Executive Director

Basic Stock Data of Firstsource Solutions Ltd

Last Updated: June 19, 2024, 2:44 pm

Market Cap 14,105 Cr.
Current Price 200
High / Low229/122
Stock P/E27.4
Book Value 52.5
Dividend Yield1.70 %
ROCE14.7 %
ROE14.6 %
Face Value 10.0
PEG Ratio2.76

Firstsource Solutions Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,3651,4631,4851,4291,4641,5441,4721,4881,5051,5571,5291,5401,597
Expenses1,1551,2291,2461,1901,2261,2991,2911,2961,2951,3131,2891,3111,359
Operating Profit210234238239238245181192210244240229237
OPM %15%16%16%17%16%16%12%13%14%16%16%15%15%
Other Income1-112-010-0649621321715
Interest13141516151919202021252625
Depreciation51535860627064666964616566
Profit before tax14855165164161156105155184172155154161
Tax %18%16%19%18%16%15%19%16%14%18%19%18%20%
Net Profit1214713413513513285129158141126127129
EPS in Rs1.740.671.931.941.941.901.221.852.262.021.791.801.83

Last Updated: June 13, 2024, 7:06 am

Firstsource Solutions Ltd Quarterly Chart

Firstsource Solutions Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales2,2552,8193,1063,0353,2173,5563,5353,8264,0995,0785,9216,0226,131
Expenses2,0592,5252,7352,6452,8193,1093,0643,2743,4454,2394,9395,1655,208
Operating Profit196293371390398447471552654839982858923
OPM %9%10%12%13%12%13%13%14%16%17%17%14%15%
Other Income39462793549-114113194
Interest699294806154534683878611092
Depreciation8988767261596674185206249263260
Profit before tax76159203244286337358436394432647615665
Tax %18%8%5%4%9%17%9%13%14%16%17%16%
Net Profit62146193234261279327378340362537514552
EPS in Rs1.442.232.923.523.874.114.765.474.905.207.697.337.87
Dividend Payout %0%0%0%0%0%0%32%37%51%58%45%47%

Firstsource Solutions Ltd Profit & Loss Yearly Chart

Firstsource Solutions Ltd Growth

Compounded Sales Growth
10 Years:8%
5 Years:11%
3 Years:14%
TTM:4%
Compounded Profit Growth
10 Years:14%
5 Years:10%
3 Years:15%
TTM:4%
Stock Price CAGR
10 Years:22%
5 Years:34%
3 Years:20%
1 Year:79%
Return on Equity
10 Years:14%
5 Years:16%
3 Years:17%
Last Year:16%

Last Updated: April 25, 2024, 6:17 am

Firstsource Solutions Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital431658660666673681687691694696697697697
Reserves9991,0561,4321,4221,1041,3471,6652,0302,0722,1032,3362,6702,973
Borrowings2,1121,2761,1891,0318919656675571,3561,1941,7841,3931,515
Other Liabilities390382409306286316352352393789796785818
Total Liabilities3,9313,3723,6893,4272,9543,3093,3713,6304,5144,7835,6135,5456,002
Fixed Assets2,4982,5142,7302,4442,0222,0682,0802,2232,8712,9983,7443,7163,770
CWIP9208242200337
Investments8035738516334134129413071139
Other Assets1,3458539539018451,0741,2551,2711,6301,6911,7361,7542,087
Total Assets3,9313,3723,6893,4272,9543,3093,3713,6304,5144,7835,6135,5456,002

Firstsource Solutions Ltd Reserves and Borrowings Chart

Firstsource Solutions Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 6199396246297200315400410976704795
Cash from Investing Activity -476583-13-104-101-23396-20310-344-59417
Cash from Financing Activity 333-881-286-246-2074-327-273-277-689-158-743
Net Cash Flow-137-9896-105-11-3084-76143-58-4969

Firstsource Solutions Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days575035353431393750615963
Inventory Days
Days Payable
Cash Conversion Cycle575035353431393750615963
Working Capital Days-1520-65-10-713147173527
ROCE %4%7%9%10%12%14%13%15%13%16%17%15%

Firstsource Solutions Ltd Financial Efficiency Indicators Chart

Firstsource Solutions Ltd Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters53.68%53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%53.66%
FIIs12.06%10.64%9.60%7.79%7.95%8.41%8.41%8.95%9.99%10.21%9.89%9.59%
DIIs14.99%13.79%14.78%14.75%14.57%13.26%14.18%15.06%15.17%16.22%18.16%19.27%
Public16.91%19.45%19.62%21.36%21.50%22.25%21.38%20.09%19.12%17.91%16.86%16.15%
Others2.35%2.46%2.34%2.44%2.32%2.42%2.37%2.24%2.06%2.00%1.44%1.35%
No. of Shareholders2,07,5602,78,4352,94,1003,20,4993,28,0013,41,6633,28,7873,09,8912,95,2832,87,1852,75,2332,66,874

Firstsource Solutions Ltd Shareholding Pattern Chart

No. of Firstsource Solutions Ltd Shareholders

Firstsource Solutions Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Small Cap Fund - Regular Plan49,576,1783.34773.647,000,0002024-06-18608.23%
ICICI Prudential Technology Fund9,011,9271.29140.637,000,0002024-06-1828.74%
SBI Technology Opportunities Fund7,000,0003.43109.247,000,0002024-06-180%
Kotak Multicap Fund5,329,7961.3183.177,000,0002024-06-18-23.86%
Mahindra Manulife Small Cap Fund2,445,0001.738.157,000,0002024-06-18-65.07%
Sundaram Small Cap Fund2,058,5711.2232.127,000,0002024-06-18-70.59%
Franklin India Smaller Companies Fund2,000,0000.3231.217,000,0002024-06-18-71.43%
Aditya Birla Sun Life Digital India Fund1,610,0960.6425.137,000,0002024-06-18-77%
SBI Conservative Hybrid Fund1,438,8040.2522.457,000,0002024-06-18-79.45%
SBI Conservative Hybrid Fund - Div (Annual)1,438,8040.2522.457,000,0002024-06-18-79.45%

Firstsource Solutions Ltd ROCE Trend

Firstsource Solutions Ltd EPS Trend

Firstsource Solutions Ltd 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 (%)1.080.330.420.360.31
Current Ratio (X)0.930.900.920.870.82
Quick Ratio (X)0.930.900.920.870.82
Dividend Payout Ratio (NP) (%)0.0046.4144.3656.33110.75
Dividend Payout Ratio (CP) (%)0.0030.6930.3035.8771.67
Earning Retention Ratio (%)0.0053.5955.6443.67-10.75
Cash Earning Retention Ratio (%)0.0069.3169.7064.1328.33
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 (%)0.0053.5855.6343.66-10.75
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

Firstsource Solutions Ltd Profitability Ratios (%)

Firstsource Solutions Ltd Liquidity Ratios

Firstsource Solutions Ltd Liquidity Ratios (%)

Firstsource Solutions Ltd Interest Coverage Ratios (%)

Firstsource Solutions Ltd Valuation Ratios

Fair Value

Fair Value: 213.59

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.

Undervalued: 6.80% compared to the current price 200

Intrinsic Value: 234.82

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 17.41% compared to the current price ₹200

Last 5 Year EPS CAGR: 9.94%

*Investments are subject to market risks

Strength and Weakness of Firstsource Solutions Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -1.00, which is a positive sign.
  2. The company has higher reserves (1,785.31 cr) compared to borrowings (1,225.38 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (3.69 cr) and profit (373.23 cr) over the years.
  1. The stock has a low average ROCE of 12.08%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 45.92, which may not be favorable.

FAQ

What is the latest fair value of Firstsource Solutions Ltd?

The latest fair value of Firstsource Solutions Ltd is ₹213.59.

What is the Market Cap of Firstsource Solutions Ltd?

The Market Cap of Firstsource Solutions Ltd is 14,105 Cr..

What is the current Stock Price of Firstsource Solutions Ltd as on 19 June 2024?

The current stock price of Firstsource Solutions Ltd as on 19 June 2024 is ₹200.

What is the High / Low of Firstsource Solutions Ltd stocks in FY 2024?

In FY 2024, the High / Low of Firstsource Solutions Ltd stocks is 229/122.

What is the Stock P/E of Firstsource Solutions Ltd?

The Stock P/E of Firstsource Solutions Ltd is 27.4.

What is the Book Value of Firstsource Solutions Ltd?

The Book Value of Firstsource Solutions Ltd is 52.5.

What is the Dividend Yield of Firstsource Solutions Ltd?

The Dividend Yield of Firstsource Solutions Ltd is 1.70 %.

What is the ROCE of Firstsource Solutions Ltd?

The ROCE of Firstsource Solutions Ltd is 14.7 %.

What is the ROE of Firstsource Solutions Ltd?

The ROE of Firstsource Solutions Ltd is 14.6 %.

What is the Face Value of Firstsource Solutions Ltd?

The Face Value of Firstsource Solutions Ltd 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 Firstsource Solutions Ltd. 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