Firstsource Solutions Ltd.
NSE: FSLFirstsource Solutions Ltd.: A 30-second snapshot
Firstsource Solutions (FSL) is an IT/BPM services company trading at ₹237.60, down 32.7% over 12 months and 39.9% below its 52-week high; current price is 21% below the 200-DMA of ₹301.24. The company has delivered 5-year revenue growth of 19.5% and earnings growth of 27.9%, with FCF positive in 4 of the available historical years, though ROE consistency and profit margins remain below what the growth profile might suggest.
P/E
25.1
Forward P/E
15.2
ROE
+15.9%
Debt / Equity
66.64
Profit Margin
+7.1%
Div. Yield
+2.3%
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
61/100
News
5 headlines · 3 positive · 0 negative
Firstsource Solutions shares zoom 18% on heavy volumes; brokerages upbeat - Business Standard
Business Standard
Firstsource Solutions shares get rating upgrade, but target price cut - here's why - MSN
MSN
Firstsource Solutions shares get rating upgrade, but target price cut - here's why - Business Today
Business Today
Firstsource Solutions stock jumps 18%; should you 'Buy'? Brokerages share target prices - Business Today
Business Today
West Bengal Elections: RPSG Group stocks- PCBL, CESC, FSL rise up to 10%; should you buy? - Business Today
Business Today
Recent context
- ·An 18% single-session price surge on heavy volumes in early May 2026 was accompanied by brokerage commentary; a concurrent article noted a rating upgrade alongside a target price cut, reflecting divergent broker views on direction vs. valuation.
- ·West Bengal election headlines grouped FSL with RPSG Group stocks (PCBL, CESC), adding an event-driven narrative layer to recent price activity beyond core business drivers.
- ·News flow over the analysis window is modest at 5 articles (3 positive, 2 neutral, 0 negative), limiting the depth of sentiment signal available from recent coverage.
Strengths
- +5-year earnings CAGR of 27.9% and revenue CAGR of 19.5% indicate sustained top- and bottom-line expansion over the medium term.
- +Free cash flow was positive in 4 of the available historical years, demonstrating an ability to convert earnings to cash.
- +Forward PE of 15.2 compares to a trailing PE of 25.1, implying the earnings base is expected to expand materially in the near term.
- +Dividend yield of 2.31% provides an income component alongside the growth profile.
Weaknesses
- −Stock is 39.9% below its 52-week high and 32.7% lower over 12 months, with price remaining 21% below the 200-DMA — the medium-term price trend has not shown signs of reversal despite the recent move above the 50-DMA.
- −Debt-to-equity of 66.6 is an anomalous figure for an IT/BPM services company and carries a rising debt trend; independent verification of the balance-sheet leverage is warranted before assessing financial risk.
- −ROE has exceeded 15% in only 2 of the available historical years, and the consistency score of 57 indicates profitability quality has been uneven despite strong headline growth rates.
- −Profit margin of 7.06% is thin for the IT services sector, and the forward PE discount assumes an earnings recovery that is not yet reflected in trailing results.
Open questions
- ?Does the reported D/E of 66.6 reflect genuine financial leverage or a data-scaling issue, and what does the actual debt-service capacity look like relative to operating cash flows?
- ?Is the 5-year earnings CAGR of 27.9% driven by margin expansion, volume growth, or one-off items — and which of those drivers is most likely to persist?
- ?What business or macro catalyst triggered the 39.9% decline from the 52-week high, and has that catalyst been resolved or is it still active?
- ?Given the sector peer cohort consists of transport and logistics companies rather than IT/BPM peers, how does FSL compare on margins, ROE, and growth against its actual business-model equivalents?
Peer comparison: Services
Ranks 1 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| FSL | Firstsource Solutions Ltd.You're viewing | 25.1 | +15.9% | 49 |
| Industry avg | across 5 peers | 40.6 | +15.6% | 31 |
| ADANIPORTS | Adani Ports and Special Economic Zone Ltd. | 30.8 | +15.6% | 49 |
| GMRAIRPORT | GMR Airports Ltd. | — | — | 35 |
| BLUEDART | Blue Dart Express Ltd. | 48.5 | — | 35 |
| CONCOR | Container Corporation of India Ltd. | 30.9 | — | 28 |
| INDIGO | InterGlobe Aviation Ltd. | 52.1 | — | 6 |
Technical state
Current price
₹237.60
SMA 50
₹223.97
SMA 200
₹301.24
RSI (14)
52.2 (neutral)
From 52w high
-39.9%
1Y return
-32.7%
3M return
-14.9%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highDebt-to-equity of 66.6 is an outlier figure for an IT/BPM services company; debt trend is flagged as rising. If this reflects true leverage, solvency risk is material; if it reflects a data-scaling artefact (e.g., 66.6% reported as 66.6 rather than 0.67), the number still warrants independent verification before drawing conclusions on balance-sheet health.
- mediumStock is 39.9% below its 52-week high and 32.7% lower over 12 months. Price has been below the 200-DMA (₹301.24) while current price stands at ₹237.60 — the gap is 21% below the long-term moving average, indicating a sustained medium-term downtrend that the recent recovery above the 50-DMA (₹223.97) has not yet reversed.
- mediumROE has exceeded 15% in only 2 of the historical years available; consistency score of 57 points to uneven profitability quality. Profit margin of 7.06% is thin for an IT/BPM business; forward PE of 15.2 vs trailing PE of 25.1 embeds a significant earnings-recovery assumption.
- lowSector peers are drawn from the broad Services bucket (ADANIPORTS, INDIGO, CONCOR, GMRAIRPORT, BLUEDART) — all transport or logistics names. FSL is an IT/BPM company; the peer-relative rankings (1st of 6 on PE, ROE, quality) may not be meaningful against this cohort.
Cross-section contradictions
- 5-year earnings CAGR of 27.9% and positive FCF in 4 of available years point to a profitable growth trajectory, yet the stock is down 32.7% over 12 months and 39.9% below its 52-week high — the price decline is not obviously explained by deteriorating fundamentals visible in the data.
- A May 2026 headline reported an 18% single-session gain on heavy volumes, while a concurrent article noted a rating upgrade alongside a target price cut — short-term price strength and an analyst valuation reduction occurred simultaneously.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days