Indian equities are undergoing a correction following a global sell-off in stock markets across the world be it the United States or Japan. But up until January 2018, India’s stock markets have surged continuously for about 13 months with Sensex rising around 35% from December 2016 to January 2018. During the 13-month rally, there were many shares which outperformed the stellar returns of Sensex and Nifty even. Today, we bring you a share of BPO firm under Rs 50 which had returned over 250% in last 5 years to buy and gain up to 33%. Interestingly, Indian investment expert and big bull Rakesh Jhunjhunwala also hold about 2.92% stake in his portfolio.
Shares of FirstSource Solution have risen about 275% to Rs 41.25 from a price level of Rs 11 five years earlier. The research and brokerage firm HDFC Securities has given a buy rating with a target price of Rs 55 which implies an upside of 33% from the current market price of Rs 41.25. The stock of FirstSource Solution is a component of S&P BSE 500 index and has a face value of Rs 10. The stock of FirstSource Solution has a security code: 532809 and an ISIN (International Security Identification Number): INE684F01012. FirstSource Solution has an EPS (earnings per share) of Rs 0.75. Recently, FirstSource Solution reported a profit of Rs 51.09 crore for the third-quarter ended 31 December 2017.
FirstSource Solution Ltd provides BPO services through end to end customer lifecycle management across different industry verticals such as telecom and media, BFSI, healthcare. The verticals contributed 32.2%, 31.8% and 35.8% respectively to the company’s revenue during the financial year 2017. FirstSource Solution, on a consolidated basis, has 48 global centres as of FY17, located in India, US, Europe, Philippines and Sri Lanka. We recommend FirstSource Solution Ltd as a buy on a decline of Rs 36 to 33 for the targets of Rs (8.2x FY20E) and Rs 55 (9.6x FY20E) in six quarters time frame, HDFC Securities said in a report.