Shares of Firstsource Solutions and PCBL Limited - both RP-Sanjiv Goenka Group companies - are once again finding investor's interest on August 6, both rising by 8 percent each in trade.
This price action follows a hectic week of buying that has taken the stocks significantly higher, more so after chairman Sanjiv Goenka spoke to CNBC-TV18 late last month, laying out growth plans for both the group companies. In the last one month, shares of PCBL Limited are higher by more than 50 percent, and that of Firstsource Solutions is higher by close to 20 percent.
Sanjiv Goenka has plans to ramp up the group's capex to Rs 35,000 crore over next 12-18 months.
On PCBL
"We see a 5x growth in profit over five years from this level", Goenka said about PCBL Limited. net profit of Firstsource could grow by about 2-1/2 folds in next two years as the company shifts to higher margin businesses and focuses on costs, Goenka had said.
PCBL's latest annual report published on August 6 quoted chairman Sanjiv Goenka saying the global uncertainties are moving investments to more stable regions and thus present at opportunity for Indian companies, "The ongoing global geopolitical tensions and economic uncertainties are driving a gradual shift in investment and sourcing to more stable regions. This presents a unique opportunity for Indian businesses to emerge as key players in global supply chains." PCBL plans to extend its supply chains to 'new geographies' he added. The company has incorporated a subsidiary in Europe as part of its global expansion strategy to extend presence in Europe.
PCBL had acquired Aquapharm Chemicals - a specialty chemicals company - which offers applications in water treatment, detergents, and oil & gas space, in an effort to diversify its portfolio. "With production facilities in India, USA, and Saudi Arabia, and a strong market presence in Europe and the Americas, this acquisition is set to synergise the strengths of both entities," Kaushik Roy, Managing Director, PCBL said in the annual report.
PCBL added that the rise in oil prices and global geopolitical concerns are key concerns for 2025, as it may tighten supply.
On Firstsource
For FY25, FSL expects revenue to grow between 11.5-13.5 percent in constant currency terms, ahead of the initial guidance of 10-13 percent, the company has said. It is optimistic of achieving a $1 billion revenue run rate by Q4 of FY26. The FY25 EBIT margin is expected to be in the range of 11-12 percent, which, post the investment phase, may improve by 50-75 basis points each year over the medium-term, FSL told analysts on July 31.
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