ICICI Direct is bullish on Firstsource Solutions has recommended buy rating on the stock with a target price of Rs 55 in its research report dated February 05, 2019.
ICICI Direct's research report on Firstsource Solutions
Revenues from operations grew 3.2% QoQ to Rs 985.2 crore (below our 4.2% growth and Rs 994.5 crore estimate). Revenues in constant currency grew 0.9% QoQ EBITDA margins declined 10 bps QoQ to 13.8% (vs. our estimate 14.6%) mainly on account of higher other expenses (up 9.1% QoQ) Reported PAT rose 5.7% QoQ to Rs 98.1 crore mainly on the back of lower tax rate (11.4% as percentage of PBT vs. 14.4% in Q2FY19)
At the CMP, it is trading at valuations of 8x FY21E EPS. Hence, we maintain our BUY rating with a revised target price of Rs 55 (9x FY21E EPS).
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