FSL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.0
| Stock Code | FSL | Market Cap | 19,014 Cr. | Current Price | 269 ₹ | High / Low | 404 ₹ |
| Stock P/E | 37.3 | Book Value | 32.5 ₹ | Dividend Yield | 2.05 % | ROCE | 21.2 % |
| ROE | 20.9 % | Face Value | 10.0 ₹ | DMA 50 | 240 ₹ | DMA 200 | 286 ₹ |
| Chg in FII Hold | -0.35 % | Chg in DII Hold | 0.30 % | PAT Qtr | 140 Cr. | PAT Prev Qtr | 144 Cr. |
| RSI | 64.0 | MACD | 7.38 | Volume | 69,44,297 | Avg Vol 1Wk | 43,06,554 |
| Low price | 201 ₹ | High price | 404 ₹ | PEG Ratio | 1.34 | Debt to equity | 0.42 |
| 52w Index | 33.6 % | Qtr Profit Var | 51.6 % | EPS | 6.11 ₹ | Industry PE | 22.2 |
📊 Financials: FSL shows strong fundamentals with consistent profitability. Quarterly PAT stood at 140 Cr, slightly lower than the previous 144 Cr, but overall profit variation remains positive at 51.6%. ROCE at 21.2% and ROE at 20.9% highlight excellent efficiency and profitability. EPS is 6.11 ₹, supporting steady earnings. Debt-to-equity at 0.42 is moderate, manageable given strong returns.
💰 Valuation: The stock trades at a P/E of 37.3, higher than the industry average of 22.2, suggesting premium valuation. Book value is 32.5 ₹, with current price at 269 ₹, implying a P/B ratio of ~8.3. PEG ratio of 1.34 indicates valuation is moderately stretched relative to growth. Intrinsic value appears slightly lower than current levels, suggesting cautious optimism.
💻 Business Model & Health: FSL operates in IT services and digital solutions, with strong presence in outsourcing and technology-driven offerings. Competitive advantage lies in diversified client base, digital transformation expertise, and global delivery capabilities. Overall health is strong, supported by profitability, institutional support, and sector demand.
📈 Entry Zone: RSI at 64.0 indicates mildly overbought levels. Support is near 240 ₹, resistance at 404 ₹. Entry around 250–260 ₹ offers a favorable long-term opportunity. Long-term holding is attractive given strong fundamentals, though investors should be cautious of premium valuations.
Positive
- 💻 [Strong Profitability](ca://s?q=FSL_profitability): High ROCE (21.2%) and ROE (20.9%).
- 📈 [Earnings Growth](ca://s?q=FSL_earnings_growth): PAT variation positive at 51.6%.
- 💸 [Dividend Yield](ca://s?q=FSL_dividend_yield): Attractive yield of 2.05%.
Limitation
- 📉 [Valuation](ca://s?q=FSL_valuation): P/E of 37.3 is higher than industry average.
- ⚠️ [Growth Valuation](ca://s?q=FSL_growth_valuation): PEG ratio of 1.34 suggests moderate stretch relative to growth.
- 📊 [FII Outflow](ca://s?q=FSL_FII_outflow): Foreign investors reduced holdings by -0.35%.
Company Negative News
- 📉 [Quarterly Decline](ca://s?q=FSL_quarterly_decline): PAT fell slightly from 144 Cr to 140 Cr.
- 📊 [FII Reduction](ca://s?q=FSL_FII_reduction): Decline in foreign institutional holdings.
Company Positive News
- 📈 [DII Support](ca://s?q=FSL_DII_support): Domestic institutions increased holdings by 0.30%.
- 💹 [Profit Growth](ca://s?q=FSL_profit_growth): Strong EPS of 6.11 ₹ reflects profitability.
Industry
- 💻 [IT Services Growth](ca://s?q=Indian_IT_services_growth): Sector expanding with digital transformation demand.
- 📊 [Industry PE](ca://s?q=IT_industry_PE): Sector average P/E is 22.2, lower than FSL’s valuation.
Conclusion
✅ FSL demonstrates strong fundamentals, profitability, and institutional support, making it a fundamentally sound investment. While valuations are stretched, growth prospects and sector demand justify partial premium. Entry around 250–260 ₹ is favorable, and long-term holding is recommended given the company’s resilience and industry outlook.