Firstsour.Solu. (FSL)

FairStock Score: 63/100 — STEADY

Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor in the Buffett-Graham tradition, I ask first whether Firstsource Solutions is a business I understand and trust, then whether the price leaves me a margin of safety. The business—BPO/KPO—has scale: ₹18,459 Cr market cap, latest quarter sales ₹2,443 Cr and net profit ₹120 Cr. Growth is impressive: sales up 28.79%, profit up 52.93%, five-year revenue CAGR 14.25%. Returns are respectable: ROE and ROCE both 15.37%, debt/equity 0.67, promoter holding 53.66%, dividend yield 2.02%. Piotroski F-Score 8/9 and Altman Z-Score 3.48 suggest a financially sound operation, not a fragile one. That is the good part. But I am a bargain hunter, and here the numbers shout caution. At ₹267.10, P/E is 28.09, P/B 4.21, PEG 3.92, and EV/EBITDA 136.73—rich multiples for a BPO/KPO business. Graham Number is only ₹108.15, so the margin of safety is negative 97.08%. In other words, I am paying nearly double the Graham-implied value. Free cash flow is negative ₹43 Cr, which matters: earnings growth without cash generation can be less durable. The 52-week range ₹202–₹371.75 shows the market can swing widely, and the FairStock Score is 63/100, merely steady. So I see a decent, growing enterprise—perhaps a fast grower by recent numbers—but not a Buffett-style bargain. I would wait for FCF to turn positive, debt to stay controlled, and the price to come closer to intrinsic value before committing.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer