BSE:526299

Stock Analysis Report

Executive Summary

Mphasis Limited provides application development and maintenance, infrastructure outsourcing, and business and knowledge process outsourcing services to clients worldwide.


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Mphasis's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 526299's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.7%

526299

-7.9%

IN IT

-3.6%

IN Market


1 Year Return

-31.0%

526299

-23.3%

IN IT

-32.1%

IN Market

Return vs Industry: 526299 underperformed the Indian IT industry which returned -23.3% over the past year.

Return vs Market: 526299 exceeded the Indian Market which returned -32.1% over the past year.


Shareholder returns

526299IndustryMarket
7 Day4.7%-7.9%-3.6%
30 Day-17.8%-23.0%-25.1%
90 Day-24.5%-25.5%-30.2%
1 Year-28.9%-31.0%-20.9%-23.3%-30.7%-32.1%
3 Year29.9%20.5%26.9%19.1%-19.8%-24.1%
5 Year102.5%73.9%16.9%5.6%-10.4%-15.2%

Price Volatility Vs. Market

How volatile is Mphasis's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Mphasis undervalued compared to its fair value and its price relative to the market?

5.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 526299 (₹672.05) is trading below our estimate of fair value (₹711.83)

Significantly Below Fair Value: 526299 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 526299 is poor value based on its PE Ratio (11.4x) compared to the IT industry average (7.3x).

PE vs Market: 526299 is poor value based on its PE Ratio (11.4x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: 526299 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 526299 is overvalued based on its PB Ratio (2.3x) compared to the IN IT industry average (0.6x).


Next Steps

Future Growth

How is Mphasis forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 526299's forecast earnings growth (8.9% per year) is above the savings rate (6.5%).

Earnings vs Market: 526299's earnings (8.9% per year) are forecast to grow slower than the Indian market (19.2% per year).

High Growth Earnings: 526299's earnings are forecast to grow, but not significantly.

Revenue vs Market: 526299's revenue (9.2% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: 526299's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 526299's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Mphasis performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 526299 has high quality earnings.

Growing Profit Margin: 526299's current net profit margins (12.9%) are lower than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: 526299's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: 526299's earnings growth over the past year (3.8%) is below its 5-year average (11.9% per year).

Earnings vs Industry: 526299 earnings growth over the past year (3.8%) underperformed the IT industry 7.2%.


Return on Equity

High ROE: 526299's Return on Equity (20.1%) is considered high.


Next Steps

Financial Health

How is Mphasis's financial position?


Financial Position Analysis

Short Term Liabilities: 526299's short term assets (₹40.8B) exceed its short term liabilities (₹21.7B).

Long Term Liabilities: 526299's short term assets (₹40.8B) exceed its long term liabilities (₹6.7B).


Debt to Equity History and Analysis

Debt Level: 526299's debt to equity ratio (9.9%) is considered satisfactory.

Reducing Debt: 526299's debt to equity ratio has reduced from 10.5% to 9.9% over the past 5 years.

Debt Coverage: 526299's debt is well covered by operating cash flow (181.1%).

Interest Coverage: 526299's interest payments on its debt are well covered by EBIT (43.3x coverage).


Balance Sheet

Inventory Level: 526299 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 526299's debt is covered by short term assets (assets are 7.5x debt).


Next Steps

Dividend

What is Mphasis's current dividend yield, its reliability and sustainability?

4.02%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 526299's dividend (4.02%) is higher than the bottom 25% of dividend payers in the Indian market (0.96%).

High Dividend: 526299's dividend (4.02%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: 526299's dividend payments have been volatile in the past 10 years.

Growing Dividend: 526299's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.8%), 526299's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 526299's dividends in 3 years are forecast to be covered by earnings (51% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Nitin Rakesh (47yo)

3.25s

Tenure

₹120,800,000

Compensation

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 ser ...


CEO Compensation Analysis

Compensation vs Market: Nitin's total compensation ($USD1.58M) is above average for companies of similar size in the Indian market ($USD660.18K).

Compensation vs Earnings: Nitin's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nitin Rakesh
CEO & Executive Director3.25yrs₹120.80mno data
V. Suryanarayanan
Executive VP & CFO5.67yrs₹23.56m0.0096% 12.1m
Subramanian Narayan
VP, Company Secretary & Compliance Officer2.42yrs₹6.60m0.00090% 1.1m
Debashis Singh
Chief Information Officerno datano datano data
Eric Winston
Executive VP2.42yrsno datano data
William Santos
President of Sales & Marketingno datano datano data
Srikanth Karra
Chief Human Resource Officer2.92yrsno datano data
Sudhir Mathur
Senior VP and Head of Bx & PE Channel8.42yrsno datano data
Jai Ganesh
Head of Mphasis Next Labs and Vice President 5.08yrsno datano data
Guru Grewal
Head of Europe2.42yrsno datano data

3.1yrs

Average Tenure

52yo

Average Age

Experienced Management: 526299's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nitin Rakesh
CEO & Executive Director3.25yrs₹120.80mno data
Amit Dixit
Non Independent Director3.58yrsno datano data
Davinder Brar
Independent Chairman of the Board4.33yrs₹6.04mno data
Narayanan Kumar
Non Executive Independent Director7.17yrs₹5.49mno data
Marshall Lux
Non Executive Director1.67yrs₹3.16mno data
David Johnson
Non Independent Director3.58yrs₹4.83mno data
Amit Dalmia
Non Independent Director3.58yrsno datano data
Jan Hier
Non Executive Independent Director4.33yrs₹5.14mno data
Paul Upchurch
Non Executive Director3.58yrs₹4.83mno data

3.6yrs

Average Tenure

59yo

Average Age

Experienced Board: 526299's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 526299 insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mphasis Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Mphasis Limited
  • Ticker: 526299
  • Exchange: BSE
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹125.361b
  • Shares outstanding: 186.54m
  • Website: https://www.mphasis.com

Number of Employees


Location

  • Mphasis Limited
  • Bagmane World Technology Center
  • Marathalli Outer Ring Road
  • Bengaluru
  • Karnataka
  • 560048
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
526299BSE (Mumbai Stock Exchange)YesEquity SharesININRAug 1999
MPHASISNSEI (National Stock Exchange of India)YesEquity SharesININRAug 1999

Biography

Mphasis Limited provides application development and maintenance, infrastructure outsourcing, and business and knowledge process outsourcing services to clients worldwide. It operates through Banking and Capital Market, Insurance, Information Technology, Communication and Entertainment, and Emerging Industries segments. The company 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, enterprise architecture and integration, and application maintenance and support services; infrastructure services for enterprises; and product engineering services. It also provides block chain, devops automation, information technology and information technology enabled, and mortgage services. The company serves customers operating in the 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. Mphasis Limited has a partnership with QEDIT to offer privacy-enhancing technology solutions on blockchain to enterprises. The company was incorporated in 1992 and is headquartered in Bengaluru, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 12:43
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.