Earnings Update: Here's Why Analysts Just Lifted Their Mphasis Limited (NSE:MPHASIS) Price Target To ₹2,610

It's been a good week for Mphasis Limited (NSE:MPHASIS) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.4% to ₹3,030. It was a credible result overall, with revenues of ₹34b and statutory earnings per share of ₹21.25 both in line with analyst estimates, showing that Mphasis is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Mphasis

Taking into account the latest results, the consensus forecast from Mphasis' 28 analysts is for revenues of ₹142.1b in 2025. This reflects a credible 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.4% to ₹89.62. In the lead-up to this report, the analysts had been modelling revenues of ₹143.7b and earnings per share (EPS) of ₹90.41 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 5.9% to ₹2,610despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Mphasis' earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Mphasis, with the most bullish analyst valuing it at ₹3,781 and the most bearish at ₹1,460 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Mphasis' revenue growth is expected to slow, with the forecast 7.6% annualised growth rate until the end of 2025 being well below the historical 12% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.0% annually. So it's pretty clear that, while Mphasis' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Mphasis going out to 2027, and you can see them free on our platform here..

You still need to take note of risks, for example - Mphasis has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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