Research Stock:::FSL:::20.08.2007

Firstsource Solutions(FSL)
Reco price: Rs 79
Market price: Rs 74.60
Target price: Rs 97
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Analysts put a "buy" on Firstsource Solutions, a pure play business
process outsourcing (BPO) vendor. The company has delivered strong
performance in the past and has a focused approach in key business
verticals balanced across geographies. Due to the blended offshore-
onsite mix, Firstsource enjoys a natural hedge which its competitors
with an India-based delivery model may lack.

The company boasts of an attractive clientele, and has a privileged
access to its stakeholder Metavante's business. Further, the company
is eyeing acquisitions in overseas markets. Analysts expects
Firstsource's revenues, EBITDA and net profit to grow at a compounded
rate of 39, 41 and 46 per cent over FY07-09E. At the target price of
Rs 97, Firstsource is valued at 21.6 times estimated FY09 earnings.