Mphasis
Market Cap
₹125.4b
Last Updated
2020/04/06 12:43 UTC
Data Sources
Company Financials +
Executive Summary
Mphasis Limited provides application development and maintenance, infrastructure outsourcing, and business and knowledge process outsourcing services to clients worldwide.
Rewards
Risk Analysis
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
| 526299 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.7% | -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 Year | 29.9%20.5% | 26.9%19.1% | -19.8%-24.1% |
| 5 Year | 102.5%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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.25yrs | ₹120.80m | no data | |
| Executive VP & CFO | 5.67yrs | ₹23.56m | 0.0096% ₹12.1m | |
| VP, Company Secretary & Compliance Officer | 2.42yrs | ₹6.60m | 0.00090% ₹1.1m | |
| Chief Information Officer | no data | no data | no data | |
| Executive VP | 2.42yrs | no data | no data | |
| President of Sales & Marketing | no data | no data | no data | |
| Chief Human Resource Officer | 2.92yrs | no data | no data | |
| Senior VP and Head of Bx & PE Channel | 8.42yrs | no data | no data | |
| Head of Mphasis Next Labs and Vice President | 5.08yrs | no data | no data | |
| Head of Europe | 2.42yrs | no data | no data |
3.1yrs
Average Tenure
52yo
Average Age
Experienced Management: 526299's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 3.25yrs | ₹120.80m | no data | |
| Non Independent Director | 3.58yrs | no data | no data | |
| Independent Chairman of the Board | 4.33yrs | ₹6.04m | no data | |
| Non Executive Independent Director | 7.17yrs | ₹5.49m | no data | |
| Non Executive Director | 1.67yrs | ₹3.16m | no data | |
| Non Independent Director | 3.58yrs | ₹4.83m | no data | |
| Non Independent Director | 3.58yrs | no data | no data | |
| Non Executive Independent Director | 4.33yrs | ₹5.14m | no data | |
| Non Executive Director | 3.58yrs | ₹4.83m | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 526299 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Aug 1999 |
| MPHASIS | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Aug 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/06 12:43 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.