Analysts have trimmed their fair value estimate for Mphasis from about ₹2,716.83 to roughly ₹2,646.33. This reflects updated assumptions around the stock's discount rate, revenue growth outlook, profit margin profile, and future P/E multiple.
What's in the News
- Mphasis completed a major technology modernization program for Flagstar Bank, consolidating six legacy data centers into two next generation facilities and migrating hundreds of critical applications with reported zero downtime. The companies say this has improved disaster recovery, operational resilience, and support for future growth (Client announcement).
- The partnership with Flagstar Bank is moving into a new phase focused on modernizing applications and operations using AI and next generation technologies, with the aim of supporting the bank's future expansion plans (Client announcement).
- Mphasis scheduled a board meeting for April 29, 2026 to consider audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, and to discuss a possible dividend recommendation among other items (Board meeting notice).
- The company announced an annual dividend of ₹62.00 per share, with an ex date and record date of July 8, 2026, and a payment date of August 22, 2026 (Dividend announcement).
- Mphasis plans an Analyst and Investor Day, labeled as "Mphasis Limited, Analyst/Investor Day," which is intended to update the market on the business and outlook (Event notice).
Valuation Changes
- Fair Value: Trimmed from ₹2,716.83 to ₹2,646.33, a reduction of about ₹70.50 per share.
- Discount Rate: Reduced from roughly 15.94% to about 15.17%, indicating a modest shift in the required return assumption.
- Revenue Growth: Adjusted slightly from about 11.01% to roughly 11.06%, reflecting a very small change in the long term growth outlook used in the model.
- Net Profit Margin: Kept broadly stable, moving from about 12.57% to roughly 12.57%, with only a marginal tweak in the underlying assumption.
- Future P/E: Lowered from about 30.79x to roughly 28.38x, pointing to a more conservative multiple applied to projected earnings.
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