Friday, January 6, 2012

STOCK RECOMMENDATION

STOCK RECOMMENDATION

BUY FIRSTSOURCE SOLUTION (532809)
CMP: 7
Target: 25 in 9 months.

Formerly known as ICICI OneSource, incorporated in 2001, Firstsource
Solutions Limited provides a range of business process outsourcing
services.
It offers business process management services to the banking,
financial services and insurance (BFSI); telecommunications and media;
and healthcare industries. Firstsource has a "rightshore" delivery
model with operations in India, U.S., UK and Philippines.

INVESTMENT VIEW:-
Firstsource Recognized with Top Honors at the International Quality
and Productivity Council (IQPC) Conference.
Leadership position in the healthcare industry.
About 40% of the revenue comes from its healthcare vertical catering
mainly to US markets.
The Company works with more than 1000 clients. 7 of the top 10 clients
have grown during the quarter.
The current Employee Strength is 29,664 and further increasing its
strength by 3000.
Depreciation in Rupee from 44 to 52 will increase the profitability of
the company.
The company is expected to sell out one of its subsidiary company
worth Rs 1600cr.

The company has repurchased zero coupon convertible bonds worth `99.7
crore ($19.1 million). The buyback will bring down its outstanding
foreign currency convertible bonds from the current `993 crore ($191
million) to `894 crore ($172 million).Quarter by Quarter it will
repurchase the remaining FCCB bonds and its liability will be zero by
2012.

With P/E of 22 and considering the strong performance both on revenues
and profitability it will be a cash rich company within a year. Hence,
we recommend a strong BUY on FSL at CMP Rs.7 with a target price of Rs.
25 within 9 months.

DISCLAIMER:- Smart Profit has taken due care and caution in
compilation of data for its reports. The market view and investment
tips expressed on Smart Profit are in no way a guarantee either
express or implied. However, Smart Profit does not guarantee the
accuracy, adequacy or completeness of any information and is not
responsible for any errors or omissions or for the results obtained
from the use of such information. CEO, Directors and staff may have a
position in the recommended stock.


FOR FURTHER DETAILS CONTACT:-
SUMAN JAIN
(CEO)
+919820041126
Email: sumanjain@smartprofit.in

DIPAK MANGELA
(Research Analyst)
+919820260291
Email: dipak.mangela@smartprofit.in

SHAILESH GOWDA
(Sr. Executive)
+919967394114
Email: shailesh.gowda@smartprofit.in

MANSINGH RAI
(Sr. Executive)
+919320907684
Email: mansingh.rai@smartprofit.in

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