Rs 47 to Rs 319: This stock turned into a multibagger in 5 years; down 7% from record high

Multibagger stock: Shares of BPO sector firm Firstsource Solutions Ltd have delivered 578% returns to investors in the last five years. The multibagger stock, which closed at Rs 47.1 on September 27, 2019 closed at Rs 319.30 in the current session. In comparison, Sensex has risen 120.42% in five years. On Friday, the business process management (BPM) services stock closed 3.11% lower at Rs 319.30 against the previous close of Rs 329.55 on BSE. Market cap of the firm slipped to Rs 22,254 crore. At this level, the stock is down 7.40%  from its record high of Rs 344.60 reached on September 25 this year. 

Total 3.84 lakh shares changed hands amounting to a turnover of Rs 12.54 crore on BSE. Firstsource Solutions stock hit a 52-week low of Rs 148.40 on October 26, 2023. 

In a year, the stock has delivered returns of 94% and risen 72.41% this year. 

In terms of technicals, the relative strength index (RSI) of Firstsource Solutions stands at 58.6, signaling it's trading neither in the overbought nor in the oversold territory. 

Firstsource Solutions stock has a one-year beta of 1.1, indicating high volatility during the period. Firstsource Solutions shares are trading lower than the 5 day but higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.  

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock has been in a strong trending mode and recently after a short period of consolidation has again picked up with decent volume participation to retest the previous peak of Rs 344 and is on the verge of a breakout with strength indicated and with RSI on the rise, has much upside potential from current rate. Once the confirmation is done, the next upside target can be expected till Rs 368 and Rs 394 levels in the coming days with near-term support maintained at Rs 327 level."

Ameya Ranadive, CMT CFTe, Sr Technical Analyst, StoxBox said a move below Rs 340 could lead to consolidation. 

"From a technical perspective, key indicators highlight the growing strength of the stock. The Average Directional Index (ADX) stands at 28, indicating a moderate upward trend, while the Relative Strength Index (RSI) is positive at 66, signifying that the stock still has buying potential without being overbought. Moreover, FSL is trading above its critical Exponential Moving Averages (20, 50, 100, and 200), providing further confirmation of its upward momentum. A sustained move above the Rs 340 level could provide a buying opportunity, with a target range of Rs 385 to Rs 405 in the near term. However, traders should remain cautious as a close below Rs 340 may lead to consolidation," said Ranadive. 

Firstsource Solutions is a business process management (BPM) services firm and a provider of transformational solutions and services spanning the customer lifecycle across Healthcare, Banking and Financial Services, Communications, Media and Technology, and other industries.