Mphasis Limited (NSE:MPHASIS) Just Reported Annual Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Mphasis Limited (NSE:MPHASIS) had a good week, as its shares rose 4.1% to close at ₹2,506 following the release of its full-year results. It was a credible result overall, with revenues of ₹133b and statutory earnings per share of ₹81.83 both in line with analyst estimates, showing that Mphasis is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mphasis after the latest results.

See our latest analysis for Mphasis

Taking into account the latest results, the current consensus from Mphasis' 29 analysts is for revenues of ₹144.0b in 2025. This would reflect a meaningful 8.5% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 10% to ₹90.79. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹144.5b and earnings per share (EPS) of ₹90.56 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹2,452. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Mphasis analyst has a price target of ₹2,902 per share, while the most pessimistic values it at ₹1,461. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Mphasis shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Mphasis' revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. Compare this to the 131 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.4% per year. 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. The consensus price target held steady at ₹2,452, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

However, before you get too enthused, we've discovered 1 warning sign for Mphasis that 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com