Dashboard/FSL

FSL

OVERVALUED

Firstsource Solutions Limited

IT · NSE

↓ 20.9% vs fair value

52W Low

₹202

+10.5% from low

52W High

₹404

-44.7% from high

News sentiment (4 articles)

1 bull2 neutral1 bear

Valuation Gauge

OVERVALUED-20.9% Margin of Safety

OVERVALUEDFAIRLY VALUEDUNDERVALUED

Current Price

₹223

Fair Value

₹185

Fair Value Analysis

₹185

Based on earnings growth potential for IT sector companies | CAUTION: ROCE declining (latest 18.6%) — returns on capital are falling; verify this isn't a value trap.

Low confidence

Growth Valuation

100% weight

₹185

Price vs Market

FSL

Nifty 50

Shareholding Pattern

Stock Health Score

B+

Financially Healthy

7.5 / 10

Profitability

8/10

ROE of 14.4% is acceptable for IT sector (benchmark: 20%)

Debt & Leverage

10/10

D/E ratio of 0.5x is well within the IT sector norm of 0.8x — strong balance sheet

Valuation vs Peers

10/10

P/E of 24.4x trades at a 54% discount to IT sector median (53x) — attractively valued

Cash Flow

6/10

FCF margin of 5.8% — healthy cash generation (₹460 Cr)

Earnings Growth

4/10

5yr EPS CAGR of 3.4% is well below IT sector average of 14.2%

Dividend

9/10

Dividend yield of 2.5% provides strong shareholder returns (benchmark: 1.5%)

Sentiment Trend — Last 30 Days

Historical Returns

Key Ratios & Growth

FCF Yield

-0.3%

Free cash flow / market cap

Revenue Growth (YoY)

+16.2%

Year-on-year revenue change

Profit Growth (YoY)

-25.0%

Year-on-year PAT change

Operating Cash Flow

₹701 Cr

TTM cash from operations

Key Financials

EPS (TTM)

₹8.9

P/E Ratio

24.4x

P/B Ratio

3.5x

ROE

14.4%

ROCE

16.2%

Debt / Equity

0.54x

Beta

0.1

Div Yield

2.5%

FCF (Cr)

₹460 Cr

Revenue (Cr)

₹7,972 Cr

EPS Growth 5Y

3.4%

Mkt Cap (Cr)

₹15,053 Cr

52W High

₹403.8

52W Low

₹202

Book Value/Share

₹61.9

Financial History

Period	Revenue	Op Profit	OPM%	PAT	EPS
TTM	₹9.1K Cr	₹1.5K Cr	16.0%	₹630 Cr	₹8.90
2025-03-31	₹8.0K Cr	₹1.2K Cr	16.0%	₹594 Cr	₹8.41
2024-03-31	₹6.3K Cr	₹1.0K Cr	16.0%	₹515 Cr	₹7.31
2023-03-31	₹6.0K Cr	₹858 Cr	14.0%	₹514 Cr	₹7.33
2022-03-31	₹5.9K Cr	₹982 Cr	17.0%	₹537 Cr	₹7.69
2021-03-31	₹5.1K Cr	₹839 Cr	17.0%	₹362 Cr	₹5.20
2020-03-31	₹4.1K Cr	₹654 Cr	16.0%	₹340 Cr	₹4.90
2019-03-31	₹3.8K Cr	₹552 Cr	14.0%	₹378 Cr	₹5.47
2018-03-31	₹3.5K Cr	₹471 Cr	13.0%	₹327 Cr	₹4.76
2017-03-31	₹3.6K Cr	₹447 Cr	13.0%	₹279 Cr	₹4.11
2016-03-31	₹3.2K Cr	₹398 Cr	12.0%	₹261 Cr	₹3.87
2015-03-31	₹3.0K Cr	₹390 Cr	13.0%	₹234 Cr	₹3.52
2014-03-31	₹3.1K Cr	₹371 Cr	12.0%	₹193 Cr	₹2.92

Compounded Growth Rates

Sales Growth

3Y+14.9%

5Y+12.5%

10Y+11.0%

Profit Growth

3Y+7.0%

5Y+11.7%

10Y+9.2%

EPS Growth

3Y+6.7%

5Y+11.3%

10Y+8.7%

Peer Comparison

Stock	Price	Fair Value	MoS%	P/E	ROE	Signal
DOLATALGO Dolat Algotech Limited	₹72	₹550.4	+86.9%	10.3	20.4%	UNDERVALUED
CEINSYS Ceinsys Tech Limited	₹995	₹4,355.2	+77.2%	16.5	25.5%	UNDERVALUED
SHILCTECH Shilchar Technologies Limited	₹4,058.1	₹14,624.9	+72.3%	24.6	43.9%	UNDERVALUED
KELLTONTEC Kellton Tech Solutions Limited	₹15.2	₹50.5	+70.0%	8.7	12.7%	UNDERVALUED
ONWARDTEC Onward Technologies Limited	₹232	₹669.5	+65.3%	11.6	19.3%	UNDERVALUED
RADHIKAJWE Radhika Jeweltech Limited	₹57.9	₹159.1	+63.6%	8.3	18.7%	UNDERVALUED
CIGNITITEC Cigniti Technologies Limited	₹1,202.5	₹2,990.5	+59.8%	11	26.8%	UNDERVALUED
DUCON Ducon Infratechnologies Limited	₹3.3	₹6.6	+49.2%	7.7	10.1%	UNDERVALUED