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MPHA

MphasisNSEI:MPHASIS Stock Report

Market Cap

₹567.6b

7D

-8.4%

1Y

132.5%

Updated

26 Nov, 2021

Data

Company Financials +
MPHASIS fundamental analysis
Snowflake Score
Valuation0/6
Future Growth3/6
Past Performance3/6
Financial Health5/6
Dividends4/6

MPHASIS Stock Overview

Mphasis Limited operates as an information technology solutions provider that specializes in cloud and cognitive services worldwide.

Mphasis Competitors

Capgemini

ENXTPA:CAP

€33.7b

Teleperformance

ENXTPA:TEP

€21.0b

Oracle Financial Services Software

BSE:532466

₹360.4b

WNS (Holdings)

NYSE:WNS

US$4.2b

Price History & Performance

Summary of all time highs, changes and price drops for Mphasis
Historical stock prices
Current Share Price₹3,059.20
52 Week High₹3,659.75
52 Week Low₹1,300.05
Beta0.65
1 Month Change-8.72%
3 Month Change5.68%
1 Year Change132.52%
3 Year Change204.96%
5 Year Change485.33%
Change since IPO1,954.02%

Recent News & Updates

Shareholder Returns

MPHASISIN ITIN Market
7D-8.4%-2.4%-3.3%
1Y132.5%49.8%43.0%

Return vs Industry: MPHASIS exceeded the Indian IT industry which returned 50.2% over the past year.

Return vs Market: MPHASIS exceeded the Indian Market which returned 47.7% over the past year.

Price Volatility

Is MPHASIS's price volatile compared to industry and market?
MPHASIS volatility
MPHASIS Average Weekly Movement5.0%
IT Industry Average Movement6.6%
Market Average Movement6.0%
10% most volatile stocks in IN Market9.0%
10% least volatile stocks in IN Market3.8%

Stable Share Price: MPHASIS is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MPHASIS's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199219,313Nitin Rakeshhttps://www.mphasis.com

Mphasis Limited operates as an information technology solutions provider that specializes in cloud and cognitive services worldwide. The company operates through Banking and Capital Market; Logistics and transportation; Information Technology, Communication and Entertainment; Insurance; and Others segments. It offers application, blockchain, business process, cognitive, cloud, cyber security, DevOps, digital, enterprise automation, design, infrastructure, modernization, data, and product engineering, as well as governance, risk, and compliance services.

Mphasis Fundamentals Summary

How do Mphasis's earnings and revenue compare to its market cap?
MPHASIS fundamental statistics
Market Cap₹567.56b
Earnings (TTM)₹13.24b
Revenue (TTM)₹105.59b

42.9x

P/E Ratio

5.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MPHASIS income statement (TTM)
Revenue₹105.59b
Cost of Revenue₹61.34b
Gross Profit₹44.24b
Expenses₹31.01b
Earnings₹13.24b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)70.65
Gross Margin41.90%
Net Profit Margin12.53%
Debt/Equity Ratio10.1%

How did MPHASIS perform over the long term?

See historical performance and comparison

Dividends

1.3%

Current Dividend Yield

54%

Payout Ratio

Valuation

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

42.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MPHASIS (₹3059.2) is trading above our estimate of fair value (₹1593.92)

Significantly Below Fair Value: MPHASIS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MPHASIS is poor value based on its PE Ratio (42.9x) compared to the Indian IT industry average (27.9x).

PE vs Market: MPHASIS is poor value based on its PE Ratio (42.9x) compared to the Indian market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: MPHASIS is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: MPHASIS is overvalued based on its PB Ratio (9.4x) compared to the IN IT industry average (2.2x).


Future Growth

How is Mphasis forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

19.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MPHASIS's forecast earnings growth (19.7% per year) is above the savings rate (6.7%).

Earnings vs Market: MPHASIS's earnings (19.7% per year) are forecast to grow slower than the Indian market (20.1% per year).

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

Revenue vs Market: MPHASIS's revenue (16.8% per year) is forecast to grow faster than the Indian market (12.7% per year).

High Growth Revenue: MPHASIS's revenue (16.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MPHASIS's Return on Equity is forecast to be high in 3 years time (25.1%)


Past Performance

How has Mphasis performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MPHASIS has high quality earnings.

Growing Profit Margin: MPHASIS's current net profit margins (12.5%) are lower than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: MPHASIS's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: MPHASIS's earnings growth over the past year (8.4%) is below its 5-year average (12% per year).

Earnings vs Industry: MPHASIS earnings growth over the past year (8.4%) underperformed the IT industry 37.6%.


Return on Equity

High ROE: MPHASIS's Return on Equity (21.9%) is considered high.


Financial Health

How is Mphasis's financial position?


Financial Position Analysis

Short Term Liabilities: MPHASIS's short term assets (₹56.0B) exceed its short term liabilities (₹37.3B).

Long Term Liabilities: MPHASIS's short term assets (₹56.0B) exceed its long term liabilities (₹10.3B).


Debt to Equity History and Analysis

Debt Level: MPHASIS has more cash than its total debt.

Reducing Debt: MPHASIS's debt to equity ratio has increased from 4% to 10.1% over the past 5 years.

Debt Coverage: MPHASIS's debt is well covered by operating cash flow (252.1%).

Interest Coverage: MPHASIS's interest payments on its debt are well covered by EBIT (51.6x coverage).


Balance Sheet


Dividend

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

1.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MPHASIS's dividend (1.25%) is higher than the bottom 25% of dividend payers in the Indian market (0.35%).

High Dividend: MPHASIS's dividend (1.25%) is low compared to the top 25% of dividend payers in the Indian market (1.44%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.7%), MPHASIS's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MPHASIS's dividends in 3 years are forecast to be covered by earnings (57.2% payout ratio).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Nitin Rakesh (50 yo)

4.83yrs

Tenure

₹115,960,000

Compensation

Mr. Nitin Omprakash Rakesh has been the Chief Executive Officer of Marble II Pte. Ltd. since January 2017.He serves as Managing Director & Director at Mphasis Limited since 2021. Mr. Rakesh has been Chief...


CEO Compensation Analysis

Compensation vs Market: Nitin's total compensation ($USD1.56M) is above average for companies of similar size in the Indian market ($USD898.19K).

Compensation vs Earnings: Nitin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MPHASIS's management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: MPHASIS's board of directors are considered experienced (5.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MPHASIS 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 employee growth, exchange listings and data sources


Key Information

  • Name: Mphasis Limited
  • Ticker: MPHASIS
  • Exchange: NSEI
  • Founded: 1992
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹567.556b
  • Shares outstanding: 187.36m
  • Website: https://www.mphasis.com

Number of Employees


Location

  • Mphasis Limited
  • Bagmane Laurel
  • Tower A, 1st Floor
  • Bengaluru
  • Karnataka
  • 560093
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 15:56
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2021/03/31


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.