Firstsource Solutions Limited

NSEI:FSL Stock Report

Market Cap: ₹249.6b

Firstsource Solutions Valuation

Is FSL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of FSL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
₹326.61
Fair Value
10.7% overvalued intrinsic discount
10
Number of Analysts

Below Fair Value: FSL (₹361.6) is trading above our estimate of fair value (₹326.61)

Significantly Below Fair Value: FSL is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FSL?

Key metric: As FSL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FSL. This is calculated by dividing FSL's market cap by their current earnings.
What is FSL's PE Ratio?
PE Ratio46.6x
Earnings₹5.36b
Market Cap₹249.63b

Price to Earnings Ratio vs Peers

How does FSL's PE Ratio compare to its peers?

The above table shows the PE ratio for FSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average50.6x
SAGILITY Sagility India
78.5x32.4%₹228.0b
543232 Computer Age Management Services
49.5x16.6%₹209.8b
ECLERX eClerx Services
28.7x13.8%₹149.8b
BLS BLS International Services
45.7xn/a₹190.8b
FSL Firstsource Solutions
46.6x22.8%₹249.6b

Price-To-Earnings vs Peers: FSL is good value based on its Price-To-Earnings Ratio (46.6x) compared to the peer average (50.6x).

Price to Earnings Ratio vs Industry

How does FSL's PE Ratio compare vs other companies in the IN Professional Services Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SECURCRED SecUR Credentials
2.5xn/aUS$1.38m
No more companies available in this PE range
FSL 46.6xIndustry Avg. 38.4xNo. of Companies7PE020406080100+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FSL is expensive based on its Price-To-Earnings Ratio (46.6x) compared to the Indian Professional Services industry average (38.4x).

Price to Earnings Ratio vs Fair Ratio

What is FSL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FSL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio46.6x
Fair PE Ratio42.9x

Price-To-Earnings vs Fair Ratio: FSL is expensive based on its Price-To-Earnings Ratio (46.6x) compared to the estimated Fair Price-To-Earnings Ratio (42.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst FSL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹361.60
₹392.30
+8.5%
5.1%₹413.00₹350.00n/a10
Jan ’26₹383.95
₹385.00
+0.3%
5.6%₹410.00₹350.00n/a10
Dec ’25₹366.70
₹384.00
+4.7%
5.4%₹400.00₹350.00n/a10
Nov ’25₹339.45
₹377.00
+11.1%
9.7%₹400.00₹280.00n/a10
Oct ’25₹312.30
₹322.00
+3.1%
10.4%₹360.00₹280.00n/a10
Sep ’25₹303.25
₹310.00
+2.2%
9.0%₹360.00₹280.00n/a10
Aug ’25₹301.00
₹303.00
+0.7%
7.1%₹360.00₹280.00n/a10
Jul ’25₹213.94
₹234.44
+9.6%
4.2%₹250.00₹220.00n/a9
Jun ’25₹183.30
₹227.78
+24.3%
5.9%₹250.00₹200.00n/a9
May ’25₹211.45
₹225.00
+6.4%
6.9%₹250.00₹190.00n/a9
Apr ’25₹200.15
₹225.56
+12.7%
7.6%₹250.00₹190.00n/a9
Mar ’25₹205.35
₹230.00
+12.0%
5.4%₹250.00₹215.00n/a8
Feb ’25₹202.00
₹191.25
-5.3%
11.5%₹230.00₹160.00n/a8
Jan ’25₹185.15
₹178.75
-3.5%
7.2%₹205.00₹160.00₹383.958
Dec ’24₹176.50
₹176.25
-0.1%
5.1%₹190.00₹160.00₹366.708
Nov ’24₹155.90
₹173.88
+11.5%
7.2%₹190.00₹150.00₹339.458
Oct ’24₹167.55
₹168.25
+0.4%
6.2%₹185.00₹150.00₹312.308
Sep ’24₹167.80
₹152.50
-9.1%
13.5%₹175.00₹105.00₹303.258
Aug ’24₹146.80
₹128.00
-12.8%
11.3%₹155.00₹105.00₹301.008
Jul ’24₹127.30
₹124.86
-1.9%
9.2%₹135.00₹105.00₹213.947
Jun ’24₹134.10
₹124.14
-7.4%
8.9%₹135.00₹105.00₹183.307
May ’24₹116.80
₹121.57
+4.1%
7.9%₹131.00₹105.00₹211.457
Apr ’24₹105.50
₹122.29
+15.9%
7.9%₹131.00₹105.00₹200.157
Mar ’24₹113.55
₹124.50
+9.6%
8.7%₹140.00₹105.00₹205.358
Feb ’24₹108.20
₹118.13
+9.2%
11.6%₹140.00₹95.00₹202.008
Jan ’24₹102.30
₹115.63
+13.0%
12.9%₹140.00₹95.00₹185.158
Analyst Price Target
Consensus Narrative from 10 Analysts
₹392.30
Fair Value
7.8% undervalued intrinsic discount
10
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/21 18:05
End of Day Share Price 2025/01/21 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Firstsource Solutions Limited is covered by 25 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jayalaxmi GuptaAnand Rathi Shares and Stock Brokers Limited
Mohit JainAnand Rathi Shares and Stock Brokers Limited
null nullAnand Rathi Shares and Stock Brokers Limited