Mahantesh Sabarad positive on Firstsource Solutions

Mahantesh Sabarad, Deputy Head of Research at SBI Capital Securities told CNBC-TV18, "In Firstsource Solutions ever since the new management has come in place for the last two years, what we would noticed is this is one company which is steadily driving down its debt. It has got a huge debt on its books unlike most IT companies and we think by FY17 most of its debt will get repaid. So this is a company which will start driving free cash flows."

"In terms of customer business management they are leaders, they have got a very good clientele base something like two of the top 10 telecom companies are their clients, six of the leading US banks are their clients and three of the top 10 healthcare companies are their clients. So some of these things make us very positive for the company and valuation wise also it is very cheap," he added.

At 13:22 hrs Firstsource Solutions was quoting at Rs 42.25, down Rs 0.15, or 0.35 percent. It has touched an intraday high of Rs 43.05 and an intraday low of Rs 41.50.