Update shared on 09 Dec 2025
Fair value Increased 1.74%Analysts have modestly raised their price target on Mphasis to ₹3,058 from ₹3,006, citing slightly stronger expectations for revenue growth and a still robust long term earnings multiple that more than offset a minor trim to projected profit margins.
What's in the News
- Mphasis launched its global brand campaign, "AI Without Intelligence Is Artificial," to position its next generation AI platform Mphasis NeoIP as a contextual, outcome driven partner for enterprises across banking, healthcare, insurance, and hi tech (company announcement)
- The new campaign focuses on intelligent engineering and continuous learning AI systems, aiming to differentiate Mphasis in a crowded AI market and highlight real world business and IT transformation use cases (company announcement)
- Mphasis introduced NeoIP, a unified AI platform that connects data, systems, and processes to automate complex decisions, predict and prevent issues, and enable continuous modernization across application development, ITOps, and business operations (company announcement)
- Early NeoIP deployments reportedly delivered up to 60 percent improvement in development and modernization efficiency and about 50 percent reduction in incident detection and resolution times for clients, strengthening the company’s value proposition in large transformation deals (company announcement)
- The company also unveiled quantum focused offerings qCryptsec for quantum safe cryptography and QOptiDecision for quantum enhanced decision optimization, targeting use cases such as route optimization, bin packing, and crew scheduling (company announcement)
Valuation Changes
- Fair Value: Raised slightly to ₹3,058 from ₹3,006, reflecting a modestly higher intrinsic value estimate for Mphasis shares.
- Discount Rate: Increased marginally to 16.07 percent from 15.99 percent, implying a slightly higher required return or perceived risk in the valuation model.
- Revenue Growth: Lifted moderately to 11.32 percent from 10.66 percent, indicating stronger expectations for top line expansion.
- Net Profit Margin: Trimmed slightly to 12.74 percent from 13.00 percent, reflecting a small downward revision to long term profitability assumptions.
- Future P/E: Eased marginally to 35.06x from 35.35x, suggesting a slightly less aggressive but still elevated earnings multiple over the forecast period.
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