Buy Firstsource Solutions; target of Rs 55: ICICI Direct

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Buy Firstsource Solutions; target of Rs 55: ICICI Direct

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)

Outlook

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).

For all recommendations report, click here

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Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

2019-02-28 11:08:11

Images are for reference only.Images gathered automatic from google.All rights on the images are with their original owners.

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