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Mphasis

NSEI:MPHASIS
Snowflake Description

Flawless balance sheet with outstanding track record and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MPHASIS
NSEI
₹182B
Market Cap
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Last updated 2019/04/19 12:47
Company description

Mphasis Limited provides application development and maintenance, infrastructure outsourcing, and business and knowledge process outsourcing services to clients worldwide. The last earnings update was 85 days ago. More info.

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MPHASIS Share Price and Events
7 Day Returns
-1.3%
NSEI:MPHASIS
2.6%
IN IT
1.1%
IN Market
1 Year Returns
8.3%
NSEI:MPHASIS
25.3%
IN IT
-0.9%
IN Market
MPHASIS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mphasis (MPHASIS) -1.3% -0.8% 12.3% 8.3% 99.8% 140.6%
IN IT 2.6% 4.7% 8.9% 25.3% 48.1% 80%
IN Market 1.1% 1.8% 5.7% -0.9% 41% 72.2%
1 Year Return vs Industry and Market
  • MPHASIS underperformed the IT industry which returned 25.3% over the past year.
  • MPHASIS outperformed the Market in India which returned -0.9% over the past year.
Price Volatility
MPHASIS
Industry
5yr Volatility vs Market

MPHASIS 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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mphasis.

NSEI:MPHASIS Discounted Cash Flow Data Sources
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.

Calculation of Discount Rate/ Cost of Equity for NSEI:MPHASIS
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 NSEI:MPHASIS 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.

NSEI:MPHASIS DCF 1st Stage: Next 10 year cash flow forecast
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 6,886.81
2021 10,876.57 Analyst x15 6,867.86
2022 11,356.92 Est @ 4.42% 6,152.24
2023 11,965.25 Est @ 5.36% 5,560.80
2024 12,684.90 Est @ 6.01% 5,057.62
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 ₹55,915.81
NSEI:MPHASIS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹16,546.06 × (1 + 7.55%) ÷ (16.56% – 7.55%) 		₹197,462.89
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹197,462.89 ÷ (1 + 16.56%)10 		₹42,649.79
NSEI:MPHASIS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹55,915.81 + ₹42,649.79 		₹98,565.60
Equity Value per Share
(INR)		 = Total value / Shares Outstanding
= ₹98,565.60 / 186.23 		₹529.26
NSEI:MPHASIS Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:MPHASIS represents 1.00123x of BSE:526299
(This could be a different class, a depositary receipt, a different currency, or all of these things.) 		1.00123x
Value per Share
(Listing Adjusted, INR)		 = Value per Share (INR) x Listing Adjustment Factor
= ₹ 529.26 x 1.00123 		₹529.91
Value per share (INR) From above. ₹529.91
Current discount Discount to share price of ₹978.65
= -1 x (₹978.65 - ₹529.91) / ₹529.91 		-84.7%

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.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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?
Raw Data
NSEI:MPHASIS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹54.74
BSE:526299 Share Price ** BSE (2019-04-18) in INR ₹977.45
India IT Industry PE Ratio Median Figure of 84 Publicly-Listed IT Companies 16.19x
India Market PE Ratio Median Figure of 2,736 Publicly-Listed Companies 16.34x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mphasis.

NSEI:MPHASIS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:526299 Share Price ÷ EPS (both in INR)

= 977.45 ÷ 54.74

 17.85x

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?
Raw Data
NSEI:MPHASIS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 17.85x
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 584 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

NSEI:MPHASIS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 17.85x ÷ 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?
Raw Data
NSEI:MPHASIS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹264.76
BSE:526299 Share Price * BSE (2019-04-18) in INR ₹977.45
India IT Industry PB Ratio Median Figure of 108 Publicly-Listed IT Companies 1.36x
India Market PB Ratio Median Figure of 3,627 Publicly-Listed Companies 1.11x
NSEI:MPHASIS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:526299 Share Price ÷ Book Value per Share (both in INR)

= 977.45 ÷ 264.76

 3.69x

* 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.
X
Value checks
We assess Mphasis's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
    5. 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.

MPHASIS 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!
Annual Growth Rate
11.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mphasis expected to grow at an attractive rate?
  • 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
Raw Data
NSEI:MPHASIS Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:MPHASIS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 11.6%
NSEI:MPHASIS 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 9.6%
India IT Industry Revenue Growth Rate Market Cap Weighted Average 9.4%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*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
Raw Data
NSEI:MPHASIS Analysts Growth Expectations Data Sources
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 numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:MPHASIS Future Estimates Data
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
NSEI:MPHASIS Past Financials Data
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.

Super high growth metrics
High Growth Checks
  • Mphasis's earnings are expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).
  • Mphasis's revenue is expected to grow by 12.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:MPHASIS 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.

NSEI:MPHASIS Future Estimates Data
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
NSEI:MPHASIS Past Financials Data
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.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mphasis is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Show me more growth companies in the IT industry
X
Future performance checks
We assess Mphasis's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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.

MPHASIS 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
Below we compare Mphasis's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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
Mphasis's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mphasis Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:MPHASIS Past Revenue, Cash Flow and Net Income Data
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).
Show me more strong past performing companies in the IT industry
X
Past performance checks
We assess Mphasis's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
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.

MPHASIS 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Mphasis's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • 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.
Raw Data

All data from Mphasis Company Filings, last reported 3 months ago.

NSEI:MPHASIS Past Debt and Equity Data
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.
Show me more healthy companies in the IT industry
X
Financial health checks
We assess Mphasis's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Mphasis has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

MPHASIS 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
Dividend payments
2.05%
Current annual income from Mphasis dividends. Estimated to be 2.96% next year.
If you bought ₹2,000 of Mphasis shares you are expected to receive ₹41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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 (1.94%).
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.
Raw Data
NSEI:MPHASIS Annualized Past and Future Dividends
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.

NSEI:MPHASIS Future Dividends Estimate Data
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
NSEI:MPHASIS Past Annualized Dividends Data
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
2009-04-20 2.000 0.474

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).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
Show me more dividend paying companies in the IT industry
X
Income/ dividend checks
We assess Mphasis's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
    7. 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.

MPHASIS Management

 What is the CEO of Mphasis's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nitin Rakesh
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:

2.1
Average Tenure
  • The tenure for the Mphasis management team is about average.
Management Team

Nitin Rakesh

TITLE
CEO & Executive Director
COMPENSATION
₹86M
AGE
46
TENURE
2.3 yrs

Surya Suryanarayanan

TITLE
Executive VP & CFO
COMPENSATION
₹22M
TENURE
4.7 yrs

Subramanian Narayan

TITLE
VP, Company Secretary & Compliance Officer
COMPENSATION
₹5M
TENURE
1.4 yrs

Debashis Singh

TITLE
Chief Information Officer

Eric Winston

TITLE
Executive VP
TENURE
1.4 yrs

Srikanth Karra

TITLE
Chief Human Resource Officer
AGE
54
TENURE
1.9 yrs

Sudhir Mathur

TITLE
Senior VP and Head of Bx & PE Channel
TENURE
7.4 yrs

Jai Ganesh

TITLE
Head of Mphasis Next Labs and Vice President
TENURE
4.1 yrs

Guru Grewal

TITLE
Head of Europe
TENURE
1.4 yrs

Meenu Bhambhani

TITLE
Head of Corporate Social Responsibility
Board of Directors Tenure

Average tenure and age of the Mphasis board of directors in years:

2.6
Average Tenure
57
Average Age
  • The average tenure for the Mphasis board of directors is less than 3 years, this suggests a new board.
Board of Directors

Davinder Brar

TITLE
Chairman of the Board
COMPENSATION
₹4M
AGE
65
TENURE
3.3 yrs

Nitin Rakesh

TITLE
CEO & Executive Director
COMPENSATION
₹86M
AGE
46
TENURE
2.3 yrs

Narayanan Kumar

TITLE
Non Executive Independent Director
COMPENSATION
₹4M
AGE
68
TENURE
6.2 yrs

King Hier

TITLE
Non Executive Independent Director
COMPENSATION
₹5M
AGE
64
TENURE
3.3 yrs

Amit Dixit

TITLE
Non Independent Director
AGE
45
TENURE
2.6 yrs

Amit Dalmia

TITLE
Non Independent Director
AGE
41
TENURE
2.6 yrs

Dave Johnson

TITLE
Non Independent Director
COMPENSATION
₹5M
AGE
64
TENURE
2.6 yrs

Paul Upchurch

TITLE
Non Independent Director
COMPENSATION
₹3M
AGE
50
TENURE
2.6 yrs

Marshall Lux

TITLE
Director
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • Mphasis insiders have only sold shares in the past 3 months.
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
X
Management checks
We assess Mphasis's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. 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.

MPHASIS News

Simply Wall St News

Did You Miss Mphasis's (NSE:MPHASIS) Impressive 133% Share Price Gain?

One great example is Mphasis Limited (NSE:MPHASIS) which saw its share price drive 133% higher over five years. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers)

Simply Wall St - –

A Close Look At Mphasis Limited’s (NSE:MPHASIS) 24% ROCE

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

Simply Wall St - –

Should You Be Worried About Insider Transactions At Mphasis Limited (NSE:MPHASIS)?

So we'll take a look at whether insiders have been buying or selling shares in Mphasis Limited (NSE:MPHASIS). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Over the last year we saw more insider selling of Mphasis shares, than buying.

Simply Wall St - –

Boasting A 21% Return On Equity, Is Mphasis Limited (NSE:MPHASIS) A Top Quality Stock?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows Mphasis has a return on equity of 21% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St - –

What Kind Of Shareholders Own Mphasis Limited (NSE:MPHASIS)?

The big shareholder groups in Mphasis Limited (NSE:MPHASIS) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Companies that used to be publicly owned tend to have lower insider ownership.

Simply Wall St - –

Should You Buy Mphasis Limited (NSE:MPHASIS) For Its Dividend?

Dividends play an important role in compounding returns in the long run and end up forming a sizeable part of investment returns. … Historically, Mphasis Limited (NSE:MPHASIS) has paid dividends to shareholders, and these days it yields 2.0%. … Does Mphasis tick all the boxes of a great dividend stock?

Simply Wall St - –

Why Mphasis Limited (NSE:MPHASIS) Could Be Your Next Investment

Participate in a short research study and receive a 6-month subscription to the award winning Simply Wall St research tool (valued at $60)! … I've been keeping an eye on Mphasis Limited (NSE:MPHASIS) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe MPHASIS has a lot to offer.

Simply Wall St - –

A Look At The Intrinsic Value Of Mphasis Limited (NSE:MPHASIS)

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Mphasis Limited (NSE:MPHASIS) as an investment opportunity. … by taking the expected future cash flows and discounting them to their present value. … Discounted Cash Flows (DCF).

Simply Wall St - –

Is Mphasis Limited (NSE:MPHASIS) A Cash Cow?

If you are currently a shareholder in Mphasis Limited (NSE:MPHASIS), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … What is free cash flow … Free cash flow (FCF) is the amount of cash Mphasis has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations.

Simply Wall St - –

All You Need To Know About Mphasis Limited's (NSE:MPHASIS) Financial Health

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Mphasis Limited (NSE:MPHASIS) with a market-capitalization of ₹193b, rarely draw their attention. … Today we will look at MPHASIS’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this information is centred entirely on financial health and is a top-level understanding, so I encourage you to look further.

Simply Wall St - –

MPHASIS 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
MPHASIS
Exchange: NSEI
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
Staff numbers
22,239
Mphasis employees.
Industry
IT Consulting and Other Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 12:47
End of day share price update: 2019/04/18 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.

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