Firstsource Solutions Ltd
NSE: FSL BSE: 532809
₹311.60
(2.20)%
Tue, 03 Feb 2026, 07:08 am
Market Cap222.58B
PE Ratio32.83
Dividend1.25
Commercial Services
Miscellaneous Commercial Services
24.5KAnalysis
dividend
- Dividends paid are covered by earnings (2x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.1x coverage).
- Firstsource Solutions's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
- Firstsource Solutions's dividend is above the markets top 25% of dividend payers in India (3.08%).
- Dividend payments have increased, but Firstsource Solutions only paid a dividend in the past 2 years.
- Whilst dividend payments have been stable, Firstsource Solutions has been paying a dividend for less than 10 years.
future
- Cash flow for Firstsource Solutions is expected to increase but not above the 50% threshold in 2 years time.
- Firstsource Solutions's earnings are expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
- Firstsource Solutions's earnings growth is positive but not above the India market average.
- Firstsource Solutions's earnings growth is positive but not above the low risk savings rate of 7.2%.
- Firstsource Solutions's earnings are expected to decrease over the next year.
- Firstsource Solutions's net income is expected to increase but not above the 50% threshold in 2 years time.
- Firstsource Solutions is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
- Performance (ROE) is not expected to exceed the current IN IT industry average.
- A decline in Firstsource Solutions's performance (ROE) is expected over the next 3 years.
- Firstsource Solutions's revenue is expected to increase but not above the 50% threshold in 2 years time.
- Firstsource Solutions's revenue is expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
- Firstsource Solutions's revenue growth is positive but not above the India market average.
health
- Firstsource Solutions is profitable, therefore cash runway is not a concern.
- Firstsource Solutions is profitable, therefore cash runway is not a concern.
- Debt is well covered by operating cash flow (49%, greater than 20% of total debt).
- Debt is covered by short term assets, assets are 1.3x debt.
- Firstsource Solutions's cash and other short term assets cover its long term commitments.
- The level of debt compared to net worth has been reduced over the past 5 years (50.1% vs 30.3% today).
- Interest payments on debt are well covered by earnings (EBIT is 7.6x coverage).
- Firstsource Solutions's level of debt (30.3%) compared to net worth is satisfactory (less than 40%).
- Low level of unsold assets.
- Firstsource Solutions's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
management
- The tenure for the Firstsource Solutions board of directors is about average.
- The tenure for the Firstsource Solutions management team is about average.
misc
- Firstsource Solutions is covered by less than 3 analysts.
- Firstsource Solutions has significant price volatility in the past 3 months.
past
- Firstsource Solutions's year on year earnings growth rate has been positive over the past 5 years.
- Firstsource Solutions used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
- Firstsource Solutions's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Firstsource Solutions's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
- Firstsource Solutions has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Firstsource Solutions's 1-year earnings growth is negative, it can't be compared to the IN IT industry average.
value
- Firstsource Solutions's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Firstsource Solutions is good value based on earnings compared to the IN IT industry average.
- Firstsource Solutions is good value based on earnings compared to the India market.
- NSEI:FSL is up 25.2% outperforming the IT industry which returned 8.5% over the past month.
- NSEI:FSL is up 25.2% outperforming the market in India which returned 8% over the past month.
- Firstsource Solutions's share price is below the future cash flow value, but not at a substantial discount (< 40%).
- Firstsource Solutions is overvalued based on assets compared to the IN IT industry average.
- Firstsource Solutions is poor value based on expected growth next year.
- FSL underperformed the IT industry which returned -10.1% over the past year.
- FSL underperformed the Market in India which returned -14.5% over the past year.
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Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800