Case study

FSL

Firstsource

Worth a closer look1y model -3.2%

Each stock's 10,000-path forecast, rendered as light.

0Score

Firstsource (FSL) Stock Analysis & Case Study

Is FSL a good buy? The data-driven verdict.

Firstsource (FSL) trades at ₹244,on the numbers it worth a closer look, a Downstox Snapshot Score of 56/100.

On the numbers, Firstsource (FSL) worth a closer look, a Downstox Snapshot Score of 56/100, weighing fairly valued at 23.0× earnings, ROE of 17.7%, a 47% model probability of trading higher in a year. Below: the full bull case, bear case, sector-relative valuation, and a probability-weighted price target for 20272031.

Last updated . Data snapshot for research, not investment advice.

FSL fundamentals at a glance, PE, PB, ROE, ROCE, market cap, dividend yield

Market cap
₹17,276 Cr
Current price
₹244
P/E ratio
23.0×
P/B ratio
3.94×
Book value
₹62
Dividend yield
2.25%
ROCE
16.2%
ROE
17.7%
Piotroski F-Score
4/9

Is FSL overvalued? FSL P/E vs its sector

FSL's P/E of 23.0× sits above the sector peer median of 15.9×, so on earnings it screens richer than peers, while its 2.25% dividend yield is above the peer median of 1.67%.

FSL P/E
23.0×
Peer median P/E
15.9×
FSL div yield
2.25%
Peer median yield
1.67%

FSL share price target 2027, 2028, 2029, 2030, 2031, a probability view

Unlike a single guessed number, this is a probability-weighted range from a 10,000-path Monte-Carlo simulation on 2.0y of FSL history (7%/yr drift, 46%/yr volatility).

YearLow (P10)Median target (P50)High (P90)Upside vs today
FSL 2027₹131₹237₹421-3%
FSL 2028₹98₹227₹527-7%
FSL 2029₹78₹220₹606-10%
FSL 2030₹65₹210₹692-14%
FSL 2031₹54₹204₹773-16%

Median (P50) is the central estimate; the P10–P90 band is the 80% confidence range. Probabilities, not promises.

What is the probability FSL goes up, or doubles?

47%
Higher in 1 year
Modelled chance the price is above today in 12 months
43%
Higher in 5 years
Modelled chance the price is above today in 5 years
19%
Doubles in 5 years
Modelled chance of reaching ₹489 within 5 years

The bull case for FSL

  • A 23.0× P/E sits in the fair-value band, neither cheap nor stretched.
  • A healthy 17.7% return on equity.
  • Pays a 2.3% dividend yield, so you're partly paid to wait.
  • Upside scenario: the model's optimistic (P90) 3-year path reaches ₹606.

The bear case & risks

  • High historical volatility (46%/yr) means a wide, bumpy range of outcomes, size positions accordingly.
  • Downside scenario: the model's pessimistic (P10) 3-year path falls to ₹78.

FSL volatility & expected range, how bumpy is the ride?

Over the last 2.0 years FSL compounded at 7%/year with annualized volatility of 46%. That volatility implies a 1-year 80% range of ₹131₹421, the honest backbone behind any single price target.

FSL price forecast, the full 60-month probability fan

Spot Price · Today
₹0
Based on 2.0 years of daily NSE data ·0.0% annualised volatility
5-yr median forecast
₹0
P(price ↑ in 5y)
0%
1-Year Forecast
2027
₹0
Median (P50)
3.2%
80% range₹131–₹421
P(price ↑)47%
P(price 2×)5%
3-Year Forecast
2029
₹0
Median (P50)
10.0%
80% range₹78–₹606
P(price ↑)45%
P(price 2×)15%
5-Year Forecast
2031
₹0
Median (P50)
16.5%
80% range₹54–₹773
P(price ↑)43%
P(price 2×)19%

FSL price probability fan

Each band shows where 10,000 simulated paths land. The wider the fan, the more uncertainty.

Probability Fan
FSL simulated paths · 60 months · 10,000 trials
P10–P90 (80%)P25–P75 (50%)Median (P50)

Probability of key outcomes

What are the odds FSL hits common targets within the simulated horizon?

0%
P(↑ 1Y)
Above today's price in 1 year
0%
P(↑ 5Y)
Above today's price in 5 years
0%
P(2×)
Doubles within 5 years
0%
P(↓)
Falls below today in 5 years

Full multi-horizon detail on the FSL price target & forecast page.

FSL Piotroski F-Score: 4/9, how financially strong is it?

4/9

The Piotroski F-Score grades financial strength on nine profitability, leverage and efficiency checks. FSL scores 4/9,mixed financial health.

FSL MTF margin & leverage, Upstox, Zerodha, Groww, Dhan

Margin Trading Facility lets you buy FSL with part of the capital. Lower margin % = higher leverage. Rates compared across brokers (no competitor publishes this):

BrokerMargin requiredApprox. leverage
UpstoxCHEAPEST36.5%2.7×
ZerodhaCHEAPEST36.5%2.7×
DhanCHEAPEST36.5%2.7×

Compare every broker on the FSL MTF page.

FSL vs peers,sector comparison

StockP/EDiv yieldMarket cap
FSL (this stock)23.0×2.25%₹17,276 Cr
RELIANCE23.1×0.45%₹17.95L Cr
TCS14.7×3.01%₹7.69L Cr
HDFCBANK15.9×1.65%₹12.11L Cr
INFY14.4×4.51%₹4.32L Cr
ICICIBANK17.9×0.81%₹9.70L Cr
SBIN11.5×1.67%₹9.61L Cr

About Firstsource: sector, index & market-cap context

Firstsource (FSL) is a small-cap NSE-listed company, and a constituent of the Nifty 200 index group, with a market capitalisation of ₹17,276 Cr. See more Nifty 200 stocks.

How the FSL Snapshot Score & forecast are built

The Downstox Snapshot Score is a transparent, rules-based read of Firstsource's public fundamentals plus a statistical forecast, not an analyst opinion. It rewards low-to-fair valuation, high ROE/ROCE, a strong Piotroski F-Score, a dividend, low volatility and a favourable probability of upside; it penalises rich valuations, weak capital efficiency, a low F-Score and high volatility. The price target is a 10,000-path Monte-Carlo simulation on real historical volatility, a distribution, not a single guess. The bull and bear cases are generated from the same data, so you always see both sides.

This is information, not investment advice. Do your own due diligence and consult a SEBI-registered adviser before investing.

FSL analysis, FAQs

Is Firstsource (FSL) a good buy?

On the numbers, Firstsource (FSL) worth a closer look, a Downstox Snapshot Score of 56/100, weighing fairly valued at 23.0× earnings, ROE of 17.7%, a 47% model probability of trading higher in a year. This is a data snapshot for research, not investment advice.

Is FSL overvalued or undervalued?

FSL trades at 23.0× earnings versus a peer median of 15.9×, so it screens richer than its sector peers.

What is the FSL share price target for 2031?

FSL's probability-weighted 2031 median target is ₹204, with an 80% range of ₹54₹773 (10,000-path Monte-Carlo).

What is the probability FSL doubles in 5 years?

The modelled probability of FSL reaching ₹489 (2×) within 5 years is 19%.

What is the bull case for FSL?

A 23.0× P/E sits in the fair-value band, neither cheap nor stretched. A healthy 17.7% return on equity. Pays a 2.3% dividend yield, so you're partly paid to wait.

What are the risks in FSL?

High historical volatility (46%/yr) means a wide, bumpy range of outcomes, size positions accordingly.

More on FSL