FIRSTSOURCE SOLUTIONS LTD (FSL) CMP Rs 29.80 looks good for 10-15% returns in short-term.
FSL has 40% income from U.S Health care business; ICICI is the promoter where the bank is scouting for partner: Face value Rs.10 and Book value-Rs.22 with trailing P/E is 12.
About FIRSTSOURCE: http://www.firstsource.com/
- Firstsource Solutions Limited was founded in December 2001 by ICICI Limited as ICICI OneSource and it was renamed as Firstsource in 2007 before the public issue. The company is among the top three BPO solutions provider in India.
- Firstsource's deep domain expertise, technical innovation, process excellence and Right shoring model combine to deliver best in class solutions and make it a global leader in providing business process
- The company derives majority of its revenues (~40%) from its healthcare vertical catering mainly to US markets. Rising cost pressures on healthcare spend in USA provides an opportunity to Indian service providers as off shoring in the vertical is expected to increase during the coming years.
- The company also has an Asia Business Unit (catering mainly to Indian domestic BPO business), which employs around 50% of manpower but has a revenue share of around 12%. A rising trend towards outsourcing by Indian companies especially in Telecom and BFSI sector will provide a volume boost to the business.
