Mphasis
Mphasis Limited provides application development and maintenance, infrastructure outsourcing, and business and knowledge process outsourcing services to clients worldwide. The last earnings update was 88 days ago. More info.
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526299 Share Price and Events
7 Day Returns
1 Year Returns
526299 Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Mphasis (526299) | -1.2% | 1.4% | 12.6% | 5.1% | 99.5% | 136.1% |
| IN IT | 2.6% | 4.6% | 8.5% | 19.3% | 49.1% | 80.2% |
| IN Market | 0.8% | 2.8% | 5.9% | -0.7% | 41.2% | 72.5% |
1 Year Return vs Industry and Market
- 526299 underperformed the IT industry which returned 19.3% over the past year.
- 526299 outperformed the Market in India which returned -0.7% over the past year.
526299 Value
Is Mphasis undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Mphasis
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Mphasis.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 19 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 16.6% |
| Perpetual Growth Rate | 10-Year IN Government Bond Rate | 7.6% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year IN Govt Bond Rate | 7.6% |
| Equity Risk Premium | S&P Global | 8.6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.05 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.054 (1 + (1- 35%) (2.49%)) |
1.048 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.05 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.048 * 8.6%) |
16.56% |
Discounted Cash Flow Calculation for BSE:526299 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Mphasis is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (INR, Millions) | Source |
Present Value Discounted (@ 16.56%) |
|
|---|---|---|---|
| 2019 | 10,580.67 | Analyst x9 | 9,077.29 |
| 2020 | 9,356.89 | Analyst x16 | 6,886.80 |
| 2021 | 10,876.57 | Analyst x15 | 6,867.86 |
| 2022 | 11,356.92 | Est @ 4.42% | 6,152.23 |
| 2023 | 11,965.25 | Est @ 5.36% | 5,560.80 |
| 2024 | 12,684.90 | Est @ 6.01% | 5,057.61 |
| 2025 | 13,506.27 | Est @ 6.48% | 4,619.95 |
| 2026 | 14,424.37 | Est @ 6.8% | 4,232.94 |
| 2027 | 15,437.44 | Est @ 7.02% | 3,886.54 |
| 2028 | 16,546.06 | Est @ 7.18% | 3,573.76 |
| Present value of next 10 years cash flows | ₹55,915.78 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= ₹16,546.06 × (1 + 7.55%) ÷ (16.56% – 7.55%) |
₹197,462.64 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= ₹197,462.64 ÷ (1 + 16.56%)10 |
₹42,649.70 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= ₹55,915.78 + ₹42,649.70 |
₹98,565.47 |
| Equity Value per Share (INR) |
= Total value / Shares Outstanding
= ₹98,565.47 / 186.23 |
₹529.26 |
| Calculation | Result | |
|---|---|---|
| Value per share (INR) | From above. | ₹529.26 |
| Current discount | Discount to share price of
₹979.60
= -1 x (₹979.60 - ₹529.26) / ₹529.26 |
-85.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Mphasis is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Mphasis's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Mphasis's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in INR | ₹54.74 |
| BSE:526299 Share Price ** | BSE (2019-04-22) in INR | ₹979.6 |
| India IT Industry PE Ratio | Median Figure of 84 Publicly-Listed IT Companies | 16.19x |
| India Market PE Ratio | Median Figure of 2,738 Publicly-Listed Companies | 16.33x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Mphasis.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = BSE:526299 Share Price ÷ EPS (both in INR) = 979.6 ÷ 54.74 |
17.89x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Mphasis is overvalued based on earnings compared to the IN IT industry average.
- Mphasis is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does
Mphasis's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 17.89x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts |
11.6%per year |
| India IT Industry PEG Ratio | Median Figure of 21 Publicly-Listed IT Companies | 1.32x |
| India Market PEG Ratio | Median Figure of 585 Publicly-Listed Companies | 1.32x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 17.89x ÷ 11.6% |
1.54x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Mphasis is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Mphasis's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in INR | ₹264.76 |
| BSE:526299 Share Price * | BSE (2019-04-22) in INR | ₹979.6 |
| India IT Industry PB Ratio | Median Figure of 108 Publicly-Listed IT Companies | 1.36x |
| India Market PB Ratio | Median Figure of 3,628 Publicly-Listed Companies | 1.11x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = BSE:526299 Share Price ÷ Book Value per Share (both in INR) = 979.6 ÷ 264.76 |
3.7x |
* Primary Listing of Mphasis.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Mphasis is overvalued based on assets compared to the IN IT industry average.
Value checks
We assess Mphasis's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) Mphasis has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
526299 Future Performance
How is Mphasis expected to perform in the next 1 to 3 years based on estimates from 19 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Mphasis's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
- Mphasis's earnings growth is positive but not above the India market average.
- Mphasis's revenue growth is expected to exceed the India market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| BSE:526299 Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts | 11.6% |
| BSE:526299 Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts | 12.4% |
| India IT Industry Earnings Growth Rate | Market Cap Weighted Average | 9.5% |
| India IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9.4% |
| India Market Earnings Growth Rate | Market Cap Weighted Average | 18.5% |
| India Market Revenue Growth Rate | Market Cap Weighted Average | 11.7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 98,651 | 12,416 | 13,610 | 14 |
| 2020-03-31 | 87,984 | 10,767 | 12,065 | 17 |
| 2019-03-31 | 77,585 | 10,693 | 10,844 | 18 |
| Date (Data in INR Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 74,505 | 10,441 | 10,580 |
| 2018-09-30 | 71,402 | 10,041 | 9,949 |
| 2018-06-30 | 68,301 | 10,203 | 9,217 |
| 2018-03-31 | 65,458 | 7,330 | 8,506 |
| 2017-12-31 | 63,073 | 4,630 | 7,932 |
| 2017-09-30 | 61,827 | 5,210 | 7,786 |
| 2017-06-30 | 60,957 | 6,071 | 7,935 |
| 2017-03-31 | 60,764 | 6,641 | 8,067 |
| 2016-12-31 | 60,863 | 9,399 | 7,691 |
| 2016-09-30 | 60,653 | 9,615 | 7,375 |
| 2016-06-30 | 61,030 | 7,770 | 7,210 |
| 2016-03-31 | 60,808 | 7,308 | 6,863 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
All data from Mphasis Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-03-31 | 70.72 | 80.00 | 62.90 | 15.00 |
| 2020-03-31 | 63.36 | 70.00 | 57.34 | 18.00 |
| 2019-03-31 | 56.49 | 59.17 | 54.40 | 19.00 |
| Date (Data in INR Millions) | EPS * |
|---|---|
| 2018-12-31 | 54.74 |
| 2018-09-30 | 51.48 |
| 2018-06-30 | 47.71 |
| 2018-03-31 | 43.32 |
| 2017-12-31 | 39.55 |
| 2017-09-30 | 38.02 |
| 2017-06-30 | 37.96 |
| 2017-03-31 | 38.41 |
| 2016-12-31 | 36.64 |
| 2016-09-30 | 35.14 |
| 2016-06-30 | 34.35 |
| 2016-03-31 | 32.71 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Mphasis's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Mphasis has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
526299 Past Performance
How has Mphasis performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Mphasis's year on year earnings growth rate has been positive over the past 5 years.
- Mphasis's 1-year earnings growth exceeds its 5-year average (33.4% vs 7.3%)
- Mphasis's earnings growth has exceeded the IN IT industry average in the past year (33.4% vs 24.5%).
Earnings and Revenue History
All data from Mphasis Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in INR Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 74,505.09 | 10,579.58 | 2,274.64 | |
| 2018-09-30 | 71,402.43 | 9,949.29 | 2,274.64 | |
| 2018-06-30 | 68,300.89 | 9,216.94 | 2,274.64 | |
| 2018-03-31 | 65,458.36 | 8,505.77 | 2,274.64 | |
| 2017-12-31 | 63,072.79 | 7,932.21 | 2,264.10 | |
| 2017-09-30 | 61,826.91 | 7,786.30 | 2,264.10 | |
| 2017-06-30 | 60,956.51 | 7,935.38 | 2,264.10 | |
| 2017-03-31 | 60,763.57 | 8,067.44 | 2,264.10 | |
| 2016-12-31 | 60,863.44 | 7,690.53 | 2,784.33 | |
| 2016-09-30 | 60,653.17 | 7,374.78 | 2,784.33 | |
| 2016-06-30 | 61,030.38 | 7,209.51 | 2,784.33 | |
| 2016-03-31 | 60,807.81 | 6,863.36 | 2,784.33 | |
| 2015-12-31 | 59,938.85 | 7,083.26 | 2,720.83 | |
| 2015-09-30 | 58,895.62 | 7,046.68 | 2,720.83 | |
| 2015-06-30 | 57,990.68 | 6,687.98 | 2,720.83 | |
| 2015-03-31 | 57,948.05 | 6,778.04 | 2,720.83 | |
| 2014-03-31 | 62,251.92 | 7,418.93 | 7,592.90 | |
| 2014-01-31 | 61,031.88 | 7,399.94 | 6,251.39 | |
| 2013-10-31 | 57,962.97 | 7,437.97 | 6,251.39 | |
| 2013-07-31 | 54,651.13 | 7,628.84 | 4,517.78 | |
| 2013-04-30 | 52,804.66 | 7,789.82 | 4,517.78 | |
| 2013-01-31 | 52,095.02 | 7,918.81 | 4,517.78 | |
| 2012-10-31 | 53,573.32 | 7,923.16 | 4,517.78 | |
| 2012-07-31 | 53,649.39 | 7,660.42 | 1,444.24 | |
| 2012-04-30 | 53,034.46 | 7,521.03 | 2,488.16 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Mphasis has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
- Mphasis used its assets more efficiently than the IN IT industry average last year based on Return on Assets.
- Mphasis has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Mphasis's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Mphasis has a total score of 6/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
526299 Health
How is Mphasis's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Mphasis's finances.
The net worth of a company is the difference between its assets and liabilities.
- Mphasis is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Mphasis's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 8.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Mphasis Company Filings, last reported 3 months ago.
| Date (Data in INR Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 49,271.50 | 4,535.38 | 15,998.09 |
| 2018-09-30 | 55,586.20 | 2,180.85 | 22,474.95 |
| 2018-06-30 | 57,364.27 | 1,974.35 | 24,410.71 |
| 2018-03-31 | 54,817.82 | 3,898.80 | 21,718.69 |
| 2017-12-31 | 52,373.53 | 3,845.10 | 28,312.29 |
| 2017-09-30 | 50,217.70 | 3,927.00 | 25,416.53 |
| 2017-06-30 | 52,114.59 | 2,581.20 | 25,170.99 |
| 2017-03-31 | 61,524.06 | 2,601.60 | 28,845.40 |
| 2016-12-31 | 64,440.45 | 3,607.71 | 33,543.19 |
| 2016-09-30 | 67,061.49 | 2,659.40 | 35,360.49 |
| 2016-06-30 | 65,221.03 | 1,452.43 | 32,861.83 |
| 2016-03-31 | 58,550.30 | 4,607.62 | 25,944.99 |
| 2015-12-31 | 61,077.01 | 2,158.31 | 23,400.96 |
| 2015-09-30 | 59,265.43 | 3,853.82 | 23,893.34 |
| 2015-06-30 | 56,759.74 | 4,065.32 | 26,559.47 |
| 2015-03-31 | 54,797.72 | 5,752.73 | 25,140.42 |
| 2014-03-31 | 51,149.75 | 5,396.16 | 17,327.90 |
| 2014-01-31 | 51,767.73 | 4,795.40 | 20,961.90 |
| 2013-10-31 | 49,344.58 | 5,542.86 | 17,375.67 |
| 2013-07-31 | 50,824.78 | 8,184.88 | 16,919.69 |
| 2013-04-30 | 48,427.10 | 7,532.70 | 23,307.74 |
| 2013-01-31 | 46,289.66 | 2,661.25 | 31,012.90 |
| 2012-10-31 | 44,047.33 | 3,228.30 | 29,316.70 |
| 2012-07-31 | 45,288.95 | 3,339.00 | 25,751.17 |
| 2012-04-30 | 42,843.55 | 3,164.23 | 23,384.55 |
- Mphasis's level of debt (9.2%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (9.9% vs 9.2% today).
- Debt is well covered by operating cash flow (230.2%, greater than 20% of total debt).
- Mphasis earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess Mphasis's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Mphasis has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
526299 Dividends
What is Mphasis's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
₹2,000 of
Mphasis
shares you are expected to receive
₹41
in your first year as a dividend.
Dividend Amount
- Mphasis's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.5%).
- Mphasis's dividend is above the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 19 Analyst Estimates (S&P Global) | See Below |
| India IT Industry Average Dividend Yield | Market Cap Weighted Average of 40 Stocks | 1.6% |
| India Market Average Dividend Yield | Market Cap Weighted Average of 1400 Stocks | 1.4% |
| India Minimum Threshold Dividend Yield | 10th Percentile | 0.3% |
| India Bottom 25% Dividend Yield | 25th Percentile | 0.5% |
| India Top 25% Dividend Yield | 75th Percentile | 1.9% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in ₹) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-03-31 | 30.25 | 19.00 |
| 2020-03-31 | 27.68 | 20.00 |
| 2019-03-31 | 24.95 | 19.00 |
| Date (Data in ₹) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2018-05-10 | 20.000 | 1.917 |
| 2017-05-26 | 17.000 | 2.422 |
| 2016-11-03 | 20.000 | 3.625 |
| 2016-07-25 | 0.000 | 0.000 |
| 2015-09-09 | 16.000 | 3.382 |
| 2014-07-31 | 7.000 | 1.759 |
| 2014-02-07 | 17.000 | 4.125 |
| 2012-12-05 | 17.000 | 4.245 |
| 2012-11-15 | 17.000 | 4.307 |
| 2012-03-01 | 6.500 | 1.679 |
| 2010-11-22 | 4.000 | 0.959 |
| 2009-11-25 | 3.500 | 0.546 |
| 2009-11-24 | 3.500 | 0.512 |
| 2009-04-23 | 2.000 | 0.465 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Mphasis's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (2.7x coverage).
- Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
Income/ dividend checks
We assess Mphasis's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Mphasis afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Mphasis has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
526299 Management
CEO
| COMPENSATION | ₹86,140,000 |
| AGE | 46 |
| TENURE AS CEO | 2.3 years |
CEO Bio
Mr. Nitin Omprakash Rakesh has been the Chief Executive Officer of Marble II Pte. Ltd. since January 2017. Mr. Rakesh has been Chief Executive Officer of Mphasis Limited since January 29, 2017 and also serves as its Executive Director since February 2019. He served as its Whole-Time Director until February 2019. Mr. Rakesh served as the President of Syntel, Inc. since April 21, 2014 until November 3, 2016. Mr. Rakesh served as President of Americas for Business Development & near Shoring Center at Syntel, Inc. from September 3, 2012 to April 21, 2014, where he headed Business Development and North American operations. He led Syntel's North American sales and business development efforts. He served as Managing Director of Motilal Oswal Financial Services Limited. He was responsible for developing and implementing Syntel's nearshoring strategies. Between 2008 to 2012, Mr. Rakesh served as the Chief Executive Officer and Managing Director at Motilal Oswal Asset Management Company Ltd., where he piloted Exchange Traded Fund (EFT) in India. During his tenure, Motilal Oswal Asset Management Company Ltd. was named “Most Innovative ETF, Asia Pacific” at the 2011 ETF Awards in New York, and the “Most Innovative Mutual Fund, India” in 2010 at the Crisil - S&P Mutual Fund Awards. Mr. Rakesh joined Motilal Oswal Group in September 2008. He served as the Chief Executive Officer and Executive Director at State Street Syntel Services where he was leading India operations hub for STT’s global business operations until 2008. Mr. Rakesh served as a Vice President and Head of B&FS BPO Operations at Syntel Inc. since February 2006. He was employed at Syntel since 2002 in various capacities with the business process outsourcing unit. He developed and led Syntel's Knowledge Process Outsourcing business from 2002 until 2008, playing a pivotal role in positioning KPO as one of the fastest growing and profitable businesses within Syntel. Mr. Rakesh served in various capacities at TCG Group from December 1999 to September 2002, with his last assignment as the Head of Sales, Banking & Financial Services at TCG Software Services. He was employed at Unit Trust of India and was responsible for venture capital deals, setting up of Offshore Mutual Funds and secondary market Research cell, Product Development and Risk Management divisions. He has been an Executive Director of Mphasis Limited since January 29, 2017. He served as Director of Syntel, Inc. since July 13, 2014 until November 3, 2016. He received an MBA in Finance from Narsee Monjee Institute of Management Studies, Mumbai and a B.E. in Computer Science from Delhi Institute of Technology, Delhi University. He is also an alumnus of Harvard Business School’s CEO Workshop. He is a distinguished leader in the IT services industry. Mr. Rakesh has a proven track record of delivering profitable growth at industry leading operating margins. Mr. Rakesh has deep domain expertise in Banking, Financial Services and Insurance verticals. He has strong customer-orientation, large deal experience and a track record of delivering transformative digital solutions. Mr. Rakesh has an entrepreneurial mindset and a focus on launching innovative new service offerings, including service offerings in automation. Mr. Rakesh served at Syntel in various capacities (most recently as the CEO) from 2012 to 2016 and also before that from 2002 to 2008. American Business Awards 2018 recognized Mr. Rakesh as the ‘Executive of the Year - Computer Services’, felicitating him with the Gold Stevie Award under the Management award category. Nitin recently won the ‘2018 Outstanding 50 Asian Americans in Business’ Award, recognizing him for the innovative growth strategy translating Mphasis into one of the fastest growing digital company.
CEO Compensation
- Insufficient data for Nitin to compare compensation growth.
- Nitin's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure of the Mphasis management team in years:
- The tenure for the Mphasis management team is about average.
Management Team
Nitin Rakesh
CEO & Executive Director
₹86M
46
2.3 yrs
Surya Suryanarayanan
Executive VP & CFO
₹22M
4.7 yrs
Subramanian Narayan
VP, Company Secretary & Compliance Officer
₹5M
1.4 yrs
Debashis Singh
Chief Information Officer
Eric Winston
Executive VP
1.4 yrs
Srikanth Karra
Chief Human Resource Officer
54
1.9 yrs
Sudhir Mathur
Senior VP and Head of Bx & PE Channel
7.4 yrs
Jai Ganesh
Head of Mphasis Next Labs and Vice President
4.1 yrs
Guru Grewal
Head of Europe
1.4 yrs
Meenu Bhambhani
Head of Corporate Social Responsibility
Board of Directors Tenure
Average tenure and age of the Mphasis board of directors in years:
- The average tenure for the Mphasis board of directors is less than 3 years, this suggests a new board.
Board of Directors
Davinder Brar
Chairman of the Board
₹4M
65
3.3 yrs
Nitin Rakesh
CEO & Executive Director
₹86M
46
2.3 yrs
Narayanan Kumar
Non Executive Independent Director
₹4M
68
6.2 yrs
King Hier
Non Executive Independent Director
₹5M
64
3.3 yrs
Amit Dixit
Non Independent Director
45
2.6 yrs
Amit Dalmia
Non Independent Director
41
2.6 yrs
Dave Johnson
Non Independent Director
₹5M
64
2.6 yrs
Paul Upchurch
Non Independent Director
₹3M
50
2.6 yrs
Marshall Lux
Director
0.7 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price (₹) | Value (₹) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 12. Mar 19 | Sell | Sethu Seetharaman | Individual | 01. Mar 19 | 06. Mar 19 | -1,500 | ₹1,029.67 | ₹-1,544,500 | ||
| 08. Mar 19 | Sell | T. Manikantan | Individual | 30. Jan 19 | 26. Feb 19 | -1,311 | ₹1,018.90 | ₹-1,335,774 | ||
| 02. Jan 19 | Sell | V. Suryanarayanan | Individual | 21. Dec 18 | 28. Dec 18 | -1,678 | ₹1,350.00 | ₹-1,888,583 | ||
| 31. Dec 18 | Sell | Puneet Bhirani | Individual | 28. Dec 18 | 28. Dec 18 | -995 | ₹1,350.00 | ₹-1,343,250 | ||
| 14. May 18 | Sell | The Blackstone Group L.P. | Company | 14. May 18 | 14. May 18 | -15,460,815 | ₹960.09 | ₹-14,843,721,669 | ||
Management checks
We assess Mphasis's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Mphasis has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
526299 Company Info
Description
Mphasis Limited provides application development and maintenance, infrastructure outsourcing, and business and knowledge process outsourcing services to clients worldwide. The company operates through Banking and Capital Market, Insurance, Information Technology, Communication and Entertainment, and Emerging Industries segments. It offers cloud, cognitive, and digital services; financial crime, financial risk, and governance solutions; application management, customer relationship management, enterprise resource planning, data engineering, testing, business process management, and enterprise architecture and integration services; infrastructure services for enterprises; and product engineering services. The company also provides information technology and information technology enabled services; and mortgage services. It serves customers operating in banking, capital markets, and insurance markets, as well as other industries, including communications, energy and utilities, healthcare, life sciences, logistics, manufacturing, and travel and transportation. The company was incorporated in 1992 and is headquartered in Bengaluru, India.
Details
| Name: | Mphasis Limited |
| 526299 | |
| Exchange: | BSE |
| Founded: | 1992 |
| ₹182,034,684,279 | |
| 186,234,267 | |
| Website: | http://www.mphasis.com |
| Address: |
Mphasis Limited Bagmane World Technology Center, Marathalli Outer Ring Road, Bengaluru, Karnataka, 560048, India |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| BSE | 526299 | Equity Shares | Mumbai Stock Exchange | IN | INR | 12. Aug 1999 | |
| NSEI | MPHASIS | Equity Shares | National Stock Exchange of India | IN | INR | 12. Aug 1999 |
Number of employees
Current staff
Industry
| IT Consulting and Other Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/22 12:36 |
| End of day share price update: | 2019/04/22 00:00 |
| Last estimates confirmation: | 2019/04/08 |
| Last earnings filing: | 2019/01/24 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/03/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
