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Firstsource Solutions Ltd Stock Analysis

Mid Cap
Evaluated by 2921 users | BSE: 532809 | NSE: FSL |
BPO/ITeS

Firstsource Solutions Limited, incorporated in 2001, is a leading player in the Business Process Management (BPM) industry. Part of the RP-Sanjiv Goenka Group, the company provides bespoke services and solutions to its customers across Banking and Financial...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Firstsource Solutions Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 3.33%2.71%7.45%10.61%10.16%7.97%9.17%8.92%7.88%8.62%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 703754911954914875940861768940
Y-o-Y Gr. Rt.-7.3%20.7%4.8%-4.2%-4.3%7.5%-8.4%-10.8%22.4%
Adjusted EPS (Rs.) 1.320.291.372.162.42.172.722.752.522.55
Y-o-Y Gr. Rt.--78%372.4%57.7%11.1%-9.6%25.4%1.1%-8.4%1.2%
Book Value per Share (Rs.) 21.3220.4118.6620.8424.426.2129.1730.9232.829.59
Adjusted Net Profit 5712.690.4142160146186189174177
Net Op. Cash Flow (Rs. Cr.) 78.591.6330-17.450.676.978.341.1222388
Debt to Cash Flow from Ops 17.0113.060.36-11.174.642.512.370.40.050.02
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Firstsource Solutions Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 3.3%0.6%-022.4%
Adjusted EPS 7.6%1.2%-2.1%1.2%
Book Value per Share 3.73.90.5-9.8
Share Price 31.8% 27.7% 28% 266.3%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 5.621.48.5610.9110.658.599.849.157.888.15
Operating Profit Margin (%) 14.178.6514.8520.622.7822.6824.4327.224.1828.46
Net Profit Margin (%) 8.11.679.9214.9317.5316.719.7421.9622.6418.84
Debt to Equity 1.451.360.10.140.140.110.090.0100
Working Capital Days 533350139137204233238304353265
Cash Conversion Cycle 294222296699116177215140
Entity Percentage Holding
Promoters 53.72%
Institutions 24.76%
Non-Institutions 21.52%
Others 0.01%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Firstsource Solutions Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Firstsource Solutions Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Firstsource Solutions Ltd's performance infers:

Firstsource Solutions Ltd earnings have grown by 1.2%, whereas share price has appreciated 27.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Firstsource Solutions Ltd share prices over the last 10 years. Here is what we found out:

Firstsource Solutions Ltd share price has appreciated 20.2% annually over the past ten years.

Firstsource Solutions Limited, incorporated in 2001, is a leading player in the Business Process Management (BPM) industry. Part of the RP-Sanjiv Goenka Group, the company provides bespoke services and solutions to its customers across Banking and Financial Services, Healthcare, Communications, Media and Technology and other diverse industries.

The Company is a public limited company incorporated and domiciled in

Firstsource Solutions Limited, incorporated in 2001, is a leading player in the Business Process Management (BPM) industry. Part of the RP-Sanjiv Goenka Group, the company provides bespoke services and solutions to its customers across Banking and Financial Services, Healthcare, Communications, Media and Technology and other diverse industries.

The Company is a public limited company incorporated and domiciled in India having registered office at Mumbai, Maharashtra, India. The Company is listed on the Bombay Stock Exchange and National Stock Exchange in India.

Business area of the company

The company is engaged in the business of providing customer management services like contact center, transaction processing and debt collection services including revenue cycle management in the healthcare industry.

Business verticals

  • Retail and SME banking (customer experience, transaction processing)
  • Complaints and remediation (complaints handling, fraud management)
  • Commercial finance (invoice factoring, risk management)
  • Mortgages (loan processing, servicing, title and valuations)
  • Collections and Recoveries (credit card, auto and student loan collections)
  • FinTech

Awards and Accolades

2016-17

  • Welsh Contact Centre Awards, 2017: Won Award in three categories including ‘Diverse Workplace’, ‘Trainer of the Year’ and ‘Special Industry Champion’
  • Global HR Excellence Awards, 2017: Won in ‘Innovation in Retention Strategy’ category. Firstsource was recognised for its’ employee retention practices and policies
  • European Contact Centre & Customer Service Awards, 2016: Honoured with the Bronze Award in the ‘Customer Service Team of the Year’ in partnership with its client giffgaff
  • U.K. Customer Experience Awards, 2016: Won in the ‘Technology & Telecoms’ category in partnership with its client NOW TV and received the silver award in the ‘Engaging Customers Online’ category in partnership with its client giffgaff
  • Asia’s Best Employer Brand Awards, 2016: Won the ‘Best Employer Brand’ Award for its excellence in building the Employer Brand as an Employer of Choice
  • 100 Best Companies for Women in India: Recognised in the 100 Best Companies for ‘Women in India’ by the 2016 Working Mother & AVTAR Best Companies
  • Business in the Community Awards: Honoured as ‘Employer of Choice’ at the Business in The Community Northern Ireland Awards in Belfast
  • Best Adversity Management Stories of Asia, 2016: Secured the 1st Runner-up position at the ‘Best Adversity Management Stories of Asia’ 2016 Awards for its response to the Chennai floods in Nov-Dec 2015

2018-19

  • European Contact Centre and Customer Service Awards (ECCCSA) 2018: Awarded Bronze for ‘Best Outsourcing Partnership’ for collaboration with Lloyds Banking Group
  • UK Complaints Handling (UKCH) Awards 2019: Won the ‘Customer Insight Strategy’ Award and was adjudged the ‘Overall Winner’ at the UK Complaints Handling (UKCH) Awards 2019, with NOWTV
  • North East Contact Centre Awards (NECCA): Awarded the ‘Best Outsourcing Partnership 2018’ with TSB, reinstating its strong partnership ethos
  • Wales HR Award: Recognised for the ‘Best HR Team’ with outstanding individuals and teams, learning, and people management practices across Wales in the last 12 months
  • Welsh Contact Centre Awards 2019: Won two awards: Gold for ‘People Engagement’ and Silver for the ‘Best Support Manager of the Year’
  • Nasscom BPM Summit 2018: Awarded the coveted ‘Customer Service Excellence Award’ in the Process Efficiency category

2019-20

  • ‘Best Complaint Handling’ and ‘Best Complaint Handling Team of the Year – Financial Services’ at the UK Complaints Handling (UKCH) Awards 2020
  • ‘Technology-Enabled Project of the Year’ and ‘Customer Experience Provider of the Year’ at the Global Sourcing Association (GSA) UK Awards 2019
  • Winner of ‘Best Use of Technology in HR’ at Employee Engagement Summit, Mumbai, India
  • Gold Award for ‘Best Use of Customer Insight’ at the UK Customer Experience Award (CXA ’19)
  • ‘Outsourced Contact Centre of the Year’ recognition at the Contact Centre Network Northern Ireland (CCNNI) Awards 2019
  • Winner in ‘Creating an Impact: Business Skills’ category at the India Innovation Awards at Perspectives 2019
  • ‘Best Outsourcing Partnership’ at the North East Contact Centre Awards 2019
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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