This stock can give you 39% return in just 1 year! Should you buy?
This affordable share, which is currently trading at Rs 42.80 per stock levels can go up to Rs 60 in one year, finds Zee Business broker's poll.
With the major indices trading at their lifetime highs, stock market investors have started to look at the mid-cap and small-cap shares - also dubbed as affordable shares. In this category, are First Source Solutions shares that are currently trading at Rs 42.8 level. According to a brokers poll conducted by Zee Business, none of the stockbroking firms has recommended a sell call in the counter, while more than 85 per cent have recommended a buy for a target of Rs 60 in one-year time horizon. They are of the opinion that the company's valuations are very attractive and it has been doing exceedingly well in its core outsourcing business.
Details about First Source Solutions fundamentals were provided in Zee Business' Rs 50 Shares programme. Here, it was revealed that the company is getting 42 per cent of its revenue from the UK while it has a strong presence in Sri Lanka and the Philippines — both are considered the emerging market in the global outsourcing business. The Company has a dividend yield of 4.8 per cent, which is also an attractive number for its shareholders.
See Zee Business Live TV streaming below:
On interest cost payment the Brokers Poll found that the company's debt has come down from Rs 922 crore in FY17 to Rs 546 cr in FY19. It shows that the company is coming out of debt at a faster rate and in coming times its interest cost will go down and that would reflect in its profit. The outsourcing company has been regularly generating revenue from its customer base, which means the company has been able to retain its client base.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.