Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/firstsource-solutions-ltd" target="_blank" data-smartkarma-citation="entities:3099:1" rel="noopener">Firstsource Solutions (FSOL IN)</a> is a well-recognized BPO player with marquee clients globally. Its client base includes the likes of a leading auto lender in US, 5 of the top 10 mortgage servicers in US, 4 of the top 10 lenders in US, 3 of the top 5 credit card issuers in US, 3 of the top 6 retail banks in UK,  global media houses like Sky, 2 of the top 6 telecom and broadcasting companies in US, 5 of the top 10 health insurance/managed care companies and 650+ hospitals in US. While the jury is still out there on how much the BPO industry would be impacted by COVID-19, we believe that from a medium-term to long-term perspective, it will only benefit led by accelerated digital adoption and outsourcing to enhance cost efficiency and improve operational resilience. Our strong outlook on the industry coupled with favorable valuation of FSOL makes us bullish on the stock.
Insight Flow:
<ul>
<li>Q4FY20 Earnings Update</li>
<li>Business Background</li>
<li>FSOL's Competitive Advantages</li>
<li>Revenue Growth Drivers &amp; Margin Expansion</li>
<li>Valuation</li>
<li>Conclusion</li>
</ul>

Firstsource Solutions (FSOL IN) is a well-recognized BPO player with marquee clients globally. Its client base includes the likes of a leading auto lender in US, 5 of the top 10 mortgage servicers in US, 4 of the top 10 lenders in US, 3 of the top 5 credit card issuers in US, 3 of the top 6 retail banks in UK,  global media houses like Sky, 2 of the top 6 telecom and broadcasting companies in US, 5 of the top 10 health insurance/managed care companies and 650+ hospitals in US.  While the jury is still out there on how much the BPO industry would be impacted by COVID-19, we believe that from a medium-term to long-term perspective, it will only benefit led by accelerated digital adoption and outsourcing to enhance cost efficiency and improve operational resilience. Our strong outlook on the industry coupled with favorable valuation of FSOL makes us bullish on the stock.
Insight Flow:

Q4FY20 Earnings Update
Business Background
FSOL's Competitive Advantages
Revenue Growth Drivers &amp; Margin Expansion
Valuation
Conclusion


Firstsource Solutions: An Attractive and Undervalued BPO Player

Asia-Focused Industry Research, Speeda Research

Speeda

Asia-Focused Industry Research

Speeda Research

Speeda Research analysts cover China, Japan, India and SEA on the latest trends and topics. We have analysts of diverse nationalities who are able to access information in their respective local languages to provide customers with comprehensive reports. With access to private company data in these regions, Speeda Research is also able to provide insights into niche sectors which are not usually covered by other parties. We are also able to undertake ad hoc company and industry research reports.

Thematic (Sector/Industry)

The total number of telecom towers in India stood at about 420,000 at the end of FY 2016 and the industry was estimated to rake in INR 1.36 trillion in annual revenue, with Bharti Infratel and Indus Towers accounting for 40.8% of the total market share. As the need to manage data traffic rises, tenancy ratio of towers is expected to increase from 1.7-1.9 to 2.9 by March 2020. We believe that this form of leasing will contribute significantly to the top line of telecom tower companies in India.

The total number of telecom towers in India stood at about 420,000 at the end of FY 2016 and the industry was estimated to rake in INR 1.36 trillion in annual revenue, with Bharti Infratel and Indus Towers accounting for 40.8% of the total market share. As the need to manage data traffic rises, tenancy ratio of towers is expected to increase from 1.7-1.9 to 2.9 by March 2020. We believe that this form of leasing will contribute significantly to the top line of telecom tower companies in India.

Telecom Infrastructure in India: Keeping Pace with the Surge in Subscribers

India

Firstsource Solutions Limited provides business process outsourcing services. The Company provides services globally to companies in the banking, financial services, and insurance industries.

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Firstsource Solutions (FSOL IN)

Firstsource Solutions: An Attractive and Undervalued BPO Player

Firstsource Solutions (FSOL IN) is a well-recognized BPO player with marquee clients globally. Its client base includes the likes of a leading auto...

Ankit Agrawal, CFA

Telecom Infrastructure in India: Keeping Pace with the Surge in Subscribers

The total number of telecom towers in India stood at about 420,000 at the end of FY 2016 and the industry was estimated to rake in INR 1.36...

Speeda Research

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52-week Range

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