Firstsource Solutions Ltd., incorporated in the year 2001, is a Mid Cap company (having a market cap of Rs 12685.23 Crore) operating in IT Enabled Services sector.
Firstsource Solutions Ltd. key Products/Revenue Segments include I T Enabled Services and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 1429.34 Crore, down -3.73 % from last quarter Total Income of Rs 1484.79 Crore and up 20.13 % from last year same quarter Total Income of Rs 1189.79 Crore. Company reported net profit after tax of Rs 135.01 Crore in latest quarter.
Investment Rationale
The brokerage cuts FY22-24E EPS by 0.4-0.9%, factoring in the Q2 miss and TSG acquisition. The stock has corrected 15%/5% in last 1M/3M. In our view, the performance miss was largely due to temporary factors, and growth should bounce back strongly from Q4FY22. The stock may consolidate in the near term due to the lack of immediate catalysts. Considering attractive valuations, the brokerage upgrades FSOL to Buy with a TP of Rs220 at 21x Sept’23E EPS.
Promoter/FII Holdings
Promoters held 53.66 per cent stake in the company as of 30-Sep-2021, while FIIs owned 10.64 per cent, DIIs 13.79 per cent.
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