⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
FSL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | FSL | Market Cap | 16,115 Cr. | Current Price | 228 ₹ | High / Low | 404 ₹ |
| Stock P/E | 34.3 | Book Value | 37.2 ₹ | Dividend Yield | 2.42 % | ROCE | 16.9 % |
| ROE | 15.3 % | Face Value | 10.0 ₹ | DMA 50 | 263 ₹ | DMA 200 | 315 ₹ |
| Chg in FII Hold | -0.05 % | Chg in DII Hold | 0.56 % | PAT Qtr | 144 Cr. | PAT Prev Qtr | 98.0 Cr. |
| RSI | 42.1 | MACD | -15.2 | Volume | 21,68,214 | Avg Vol 1Wk | 16,56,970 |
| Low price | 201 ₹ | High price | 404 ₹ | PEG Ratio | -88.0 | Debt to equity | 0.32 |
| 52w Index | 13.4 % | Qtr Profit Var | 39.8 % | EPS | 5.44 ₹ | Industry PE | 21.9 |
📊 Core Financials
- Revenue growth: PAT improved to 144 Cr. from 98 Cr., showing strong quarterly growth
- Profit margins: EPS at 5.44 ₹, ROE 15.3%, ROCE 16.9% — moderate efficiency
- Debt ratios: Debt-to-equity at 0.32, manageable but not debt-free
- Cash flows: Profitability supports healthy cash generation
- Return metrics: ROE and ROCE slightly above average, but not industry-leading
💹 Valuation Indicators
- P/E Ratio: 34.3, above industry PE of 21.9, reflects premium valuation
- P/B Ratio: ~6.13 (228 ₹ / 37.2 ₹), relatively high
- PEG Ratio: -88.0, distorted due to earnings volatility
- Intrinsic Value: Current price appears overvalued compared to industry norms
🏢 Business Model & Competitive Advantage
- Operates in IT services and BPM sector
- Competitive advantage through diversified client base and outsourcing expertise
- Industry demand supported by digital transformation and global outsourcing trends
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive near 210–220 ₹ range
- Long-Term Holding: Recommended with caution; fundamentals are stable but valuation is stretched
✅ Positive
- PAT growth of 39.8% quarter-on-quarter
- Dividend yield at 2.42% provides shareholder returns
- DII holding increased (+0.56%)
⚠️ Limitation
- P/E ratio (34.3) above industry average
- P/B ratio at ~6.13 is relatively high
- PEG ratio (-88.0) indicates distorted valuation
📰 Company Negative News
- FII holding decreased (-0.05%)
- Stock trading below DMA 50 (263 ₹) and DMA 200 (315 ₹), showing weak momentum
- MACD at -15.2 indicates bearish sentiment
🌟 Company Positive News
- PAT increased to 144 Cr. from 98 Cr.
- DII holding increased (+0.56%)
- Dividend yield at 2.42% adds shareholder value
🏭 Industry
- Industry PE at 21.9, FSL trades at a premium
- Sector benefits from global outsourcing demand and digital transformation initiatives
🔎 Conclusion
- FSL shows stable fundamentals with consistent profitability and moderate efficiency
- Valuation is stretched compared to industry peers, limiting near-term upside
- Recommended for long-term holding only at lower entry levels (210–220 ₹) with cautious optimism