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INVESTMENT INSIGHTS

Check Before You Invest : Firstsource Solutions Ltd

BSE: 532809 NSE: FSL ISIN: INE684F01012
  |   Sector:  IT & ITES   |   Industry:  BPO/ITeS

Snapshot

Q.1 Which industry/sub-sector does Firstsource Solutions Ltd belong to?
Firstsource Solutions Ltd belongs to the IT & ITES sector, operating specifically within the BPO/ITeS segment.
Q.2 Is Firstsource Solutions Ltd a good quality company?
Firstsource Solutions Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Firstsource Solutions Ltd undervalued or overvalued?
Firstsource Solutions Ltd appears Fair, as its key valuation ratios are in line with their past averages.
Q.4 Is Firstsource Solutions Ltd a good buy now?
Firstsource Solutions Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Firstsource Solutions Ltd?
Firstsource Solutions Ltd revenue growth is 44.1% for FY-2025 , which is above its 5 year CAGR of 19.7% , indicating faster growth.
Q.2 Gross Profit margin of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 26.2% for FY-2025 , which is below its 5 year median of 29.5% , indicating decreasing margins.
Q.3 Operating Profit Margin of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.32% for FY-2025 , which is below its 5 year median of 28.27% indicating decreasing margins.
Q.4 Net Profit Margin of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Net Profit Margin is 18.51% for FY-2025 , is below with its 5 year median of 19.97%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 26.2 29.5
Operating Profit Margin 26.32 28.27
Net Profit Margin 18.51 19.97
Q.5 Return on Asset of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Return on Asset is 13.79(x), which is in line with its 5 year historical median of 13.79(x), indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Return on equity is 17.66% for FY-2025 , which is above its historical median of 17.47%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Return on capital employed is 22.05% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Cash conversion cycle is 106 , below its historical median of 109 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.74 0.64
ROE 17.66 17.47
ROCE 22.05 20.69
Cash Conversion Cycle 106 109
Q.9 Debt to Equity ratio of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Debt-to-Equity ratio is 0.10 , which is above with the industry average of 0.06 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Firstsource Solutions Ltd?
Firstsource Solutions Ltd Debt to cash flow from operations is 0.49 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Firstsource Solutions Ltd?
Promoters hold 53.66% of the Firstsource Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Firstsource Solutions Ltd vs industry peers?
Firstsource Solutions Ltd revenue CAGR is 19.67% , compared to the industry median CAGR of 4.16% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,306.6 35.5
Gross Profit 604.4 4.4
Operating Profit 604 4.4
Net Profit 427 2
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.74 0.73
ROE 17.66 11.15
ROCE 22.05 15.65
Cash Conversion Cycle 105.66 40

Valuation & price assessment

Q.1 Stock return of Firstsource Solutions Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 19.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 19.8% 13.2% 23.9% -32.8%
Q.3 Valuation ratios of Firstsource Solutions Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 40.61 23.48 19.99
Price to Book 5.79 2.16 2.65
Price to Sales 5.57 4.83 3.59
EV to EBITDA 19.03 14.41 16.03

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9. Matrimony.Com
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