Stocks To Buy: RPSG Group stock may jump 23% on credible turnaround, IIFL says

Shares of Firstsource Solutions Ltd. were trading higher on Friday, December 19, after brokerage firm IIFL Finance initiated coverage on the stock.

IIFL Finance has begun coverage with a 'Buy' rating and a price target of ₹420 per share, implying a potential upside of up to 23% from Thursday's closing level.

The brokerage said the RP-Sanjiv Goenka Group company's turnaround over the past two years under the new CEO has been credible.

According to IIFL, the company saw a sharp increase in large deal wins, rising from about one deal per quarter in FY24 to four to five deals per quarter by FY26, along with strong new and strategic client wins and a broader client base across revenue buckets.

The company also witnessed strong growth in annual contract value, which rose 60% year-on-year in FY25, alongside increasing deal sizes.

IIFL Finance expects Firstsource Solutions to deliver a 12.4% constant currency organic revenue CAGR and a 22% EPS CAGR over FY26 to FY28, driven by improved brand positioning, a strengthened sales engine and robust technology capabilities.

Of the 16 analysts tracking Firstsource Solutions, 11 have a 'Buy' rating on the stock, two recommend 'Hold', while three have a 'Sell' call.

Shares of Firstsource Solutions were trading 0.35% higher at ₹343.60 on Friday. The stock is down about 11% so far in 2025.