Nomura has reiterated its Buy rating on Firstsource Solutions, setting a target price of ₹400, indicating a 6% upside from the current market price of ₹376. Firstsource posted a strong Q2 performance with a revenue beat, while margins came in line with expectations. The company has raised its FY25 revenue growth guidance significantly, now targeting 19.5-20.5% growth compared to the previous 11.5-13.5%.
Nomura expects Firstsource to reach a USD 1 billion revenue run-rate by Q4FY25. Although margin expansion may be gradual due to front-loaded investments, Nomura has increased its EPS estimates for FY25-27 by 2.6-9.6% to reflect the anticipated growth trajectory.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors are advised to perform their due diligence before making investment decisions.
