Return Trends At Firstsource Solutions (NSE:FSL) Aren't Appealing
Nov 28
Indian (NIFTY) Professional Services Industry Analysis
UpdatedNov 30, 2023
DataAggregated Company Financials
Companies60
- 7D1.4%
- 3M8.8%
- 1Y31.5%
- YTD36.9%
Over the last 7 days, the Professional Services industry has risen 1.4%, driven by gains from L&T Technology Services of 2.4%. In the last 12 months, the industry was up 32%. Looking forward, earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the Indian Professional Services Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 30 Nov 2023 | ₹1.5t | ₹636.2b | ₹43.3b | 24.1x | 34x | 2.3x |
| Sat, 28 Oct 2023 | ₹1.3t | ₹620.7b | ₹42.5b | 26.4x | 30.4x | 2.1x |
| Mon, 25 Sep 2023 | ₹1.4t | ₹619.1b | ₹42.3b | 25.6x | 32.6x | 2.2x |
| Wed, 23 Aug 2023 | ₹1.3t | ₹619.0b | ₹42.3b | 23.3x | 31.6x | 2.2x |
| Fri, 21 Jul 2023 | ₹1.2t | ₹600.2b | ₹39.9b | 28.3x | 31x | 2.1x |
| Sun, 18 Jun 2023 | ₹1.2t | ₹591.5b | ₹39.2b | 24.6x | 30.1x | 2x |
| Tue, 16 May 2023 | ₹1.1t | ₹588.7b | ₹41.6b | 25.2x | 27x | 1.9x |
| Thu, 13 Apr 2023 | ₹1.1t | ₹579.6b | ₹40.5b | 25x | 26x | 1.8x |
| Sat, 11 Mar 2023 | ₹681.7b | ₹366.1b | ₹23.2b | 27.3x | 29.3x | 1.9x |
| Mon, 06 Feb 2023 | ₹647.9b | ₹366.4b | ₹23.2b | 26.5x | 27.9x | 1.8x |
| Wed, 04 Jan 2023 | ₹692.4b | ₹351.4b | ₹22.5b | 24x | 30.8x | 2x |
| Fri, 02 Dec 2022 | ₹755.9b | ₹350.7b | ₹22.5b | 24.6x | 33.6x | 2.2x |
| Sun, 30 Oct 2022 | ₹706.7b | ₹334.6b | ₹21.8b | 34.4x | 32.4x | 2.1x |
| Tue, 27 Sep 2022 | ₹692.4b | ₹330.6b | ₹21.2b | 35.4x | 32.6x | 2.1x |
| Thu, 25 Aug 2022 | ₹714.3b | ₹330.5b | ₹21.2b | 32.9x | 33.7x | 2.2x |
| Sat, 23 Jul 2022 | ₹675.3b | ₹312.0b | ₹20.2b | 36.2x | 33.5x | 2.2x |
| Mon, 20 Jun 2022 | ₹612.7b | ₹307.0b | ₹19.2b | 36x | 31.9x | 2x |
| Wed, 18 May 2022 | ₹704.3b | ₹290.7b | ₹17.6b | 25.8x | 40x | 2.4x |
| Fri, 15 Apr 2022 | ₹828.7b | ₹288.1b | ₹16.9b | 35.3x | 49x | 2.9x |
| Sun, 13 Mar 2022 | ₹829.9b | ₹288.1b | ₹16.9b | 37.1x | 49x | 2.9x |
| Tue, 08 Feb 2022 | ₹839.8b | ₹275.4b | ₹15.8b | 28.3x | 53x | 3x |
| Thu, 06 Jan 2022 | ₹1.0t | ₹267.7b | ₹15.1b | 25.8x | 66.1x | 3.7x |
| Sat, 04 Dec 2021 | ₹980.0b | ₹267.7b | ₹15.1b | 20.1x | 64.9x | 3.7x |
| Mon, 01 Nov 2021 | ₹789.7b | ₹250.7b | ₹14.4b | 31.6x | 54.7x | 3.2x |
| Wed, 29 Sep 2021 | ₹770.0b | ₹247.5b | ₹13.8b | 31.3x | 55.8x | 3.1x |
| Fri, 27 Aug 2021 | ₹681.4b | ₹248.2b | ₹13.7b | 42.8x | 49.7x | 2.7x |
| Sat, 03 Jul 2021 | ₹573.5b | ₹248.2b | ₹13.7b | 34.8x | 41.8x | 2.3x |
| Tue, 06 Apr 2021 | ₹522.1b | ₹237.4b | ₹12.4b | 25.9x | 42.1x | 2.2x |
| Fri, 08 Jan 2021 | ₹452.8b | ₹237.1b | ₹6.2b | 24.4x | 73.2x | 1.9x |
Price to Earnings Ratio
51.3x
Current Industry PE
- Investors are pessimistic on the Indian Professional Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 34.0x which is lower than its 3-year average PE of 42.4x.
- The industry is trading close to its 3-year average PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the Professional Services industry have grown 83% per year over the last three years.
- Revenues for these companies have grown 38% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Indian Industrials industry?
| IN Market | 1.58% | |
| Industrials | 1.95% | |
| Professional Services | 1.43% | |
| Research and Consulting Services | 1.83% | |
| HR Services | 1.49% | |
Industry PE
- Investors are most optimistic about the Research and Consulting Services industry, which is trading close to its 3-year average PE ratio of 35.8x.
- Analysts expect its future annual earnings growth (14.8%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the HR Services industry, which is trading below its 3-year average of 65.5x.
Forecasted Growth
- Analysts are most optimistic on the HR Services industry, expecting annual earnings growth of 29% over the next 5 years.
- However this is lower than its past earnings growth rate of 41% per year.
- In contrast, the Research and Consulting Services industry is expected to see its earnings grow by 15% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| LTTS L&T Technology Services | ₹4.68k | 2.4% +₹11.5b | 22.6% | PE40.5x | |
| FSL Firstsource Solutions | ₹175.70 | 4.9% +₹5.7b | 59.9% | PE21.9x | |
| LATENTVIEW Latent View Analytics | ₹476.35 | 2.9% +₹2.8b | 27.4% | PE63.9x | |
| RPSGVENT RPSG Ventures | ₹760.70 | 13.0% +₹2.6b | 55.0% | PS0.3x | |
| 543232 Computer Age Management Services | ₹2.78k | 1.1% +₹1.5b | 21.0% | PE44.2x |
