MEDIUM TERM BUY - FIRST SOURCE LTD

FIRSTSOURCE   LIMITED

NSE : FSL    CMP: 12.00   Target:  : 25.00   medium term
Firstsource is a global  BPO (business process  outsourcing) service providers, and is ranked #25 amongst the world’s leading Global Outsourcing companies by IAOP. They provide customized BPO solutions to category leading companies in several industries including Banking & Financial Services, Telecom & Media and Healthcare sectors. FSL utilize global delivery model with operations in the USA, UK, India and
The Philippines. They are expanding their Asia business unit. With more than 27000 employees, its revenue earning for FY 2010-211 is US $ 448 million. Total income from operations rose to Rs 523 crore during the
April-June quarter of 2011, compared to Rs 490.70 crore in the same period last year. The volumes have risen by 6.6% on a yearly basis. FSL sees a significant growth in Asia business unit, which is a positive trend.

In June quarter, they expanded their workforce by 25% by adding 3000 new employees. The expansion of workforce gives light on the increasing work of FSL which shall be reflected in the coming quarters. With expansion in  geographical dimensions, increasing capacity and work load, FSL is bound to grow at a higher rate.  recommend a strong BUY with target of 25 in  4 to 5 months.