Firstsource Solutions Shares Surge 18% Amid Positive Broker Upgrades
Firstsource Solutions shares zoom 18% on heavy volumes; brokerages upbeat
Business Standard
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Shares of Firstsource Solutions (FSL) increased by 18% to ₹278 on the Bombay Stock Exchange, driven by a positive outlook and heavy trading volumes. Analysts upgraded the stock to 'Buy', citing strong growth potential and improved margins, with a target price set at ₹290.
- 01FSL shares rose 18% to ₹278 amid heavy trading volumes.
- 02Brokerages upgraded FSL to 'Buy' with a target price of ₹290.
- 03The company reported a 3% quarter-on-quarter revenue growth, below the expected 5.8%.
- 04Management aims for 12.25-12.75% EBIT margins in FY27.
- 05FSL's focus on AI-led transformation is driving demand and strategic client relationships.
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Firstsource Solutions (FSL) shares surged 18% to ₹278 during intra-day trading on the Bombay Stock Exchange, amid heavy volumes exceeding 66.92 million shares. This increase comes as brokerages, including ICICI Securities, upgraded the stock to 'Buy', raising the target price to ₹290 based on strong growth prospects and improved operational efficiencies. FSL's revenue for Q4 FY26 grew 3% quarter-on-quarter, falling short of the 5.8% analysts expected, primarily due to delays in UK collections and Medicare payments. Despite this, management expressed optimism about future growth, projecting 12.25-12.75% EBIT margins for FY27, supported by AI-driven productivity improvements. The company is embedding AI across various operations, enhancing its positioning in the outsourcing landscape. Analysts anticipate a revenue growth acceleration in FY27, with organic constant currency revenue guidance set between 8% to 11%.
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The increase in share price reflects investor confidence, which could positively influence employee morale and company investments.
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