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Last Updated on: 23 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 526299 | NSE: MPHASIS

Mphasis Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:53 pm

Market Cap 54,556 Cr.
Current Price 2,884
High / Low3,188/2,180
Stock P/E34.2
Book Value 458
Dividend Yield1.91 %
ROCE24.0 %
ROE18.4 %
Face Value 10.0
PEG Ratio6.44

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Mphasis Ltd

Competitors of Mphasis Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
I Power Solutions India Ltd 6.41 Cr. 14.414.4/9.33 8.990.00 %3.67 %3.83 % 10.0
Hypersoft Technologies Ltd 7.47 Cr. 17.617.6/7.00 5.130.00 %8.57 %10.7 % 10.0
Newgen Software Technologies Ltd 15,162 Cr. 1,0821,548/61855.2 86.20.37 %26.6 %22.7 % 10.0
Mphasis Ltd 54,556 Cr. 2,8843,188/2,18034.2 4581.91 %24.0 %18.4 % 10.0
Kellton Tech Solutions Ltd 1,380 Cr. 142184/83.619.3 50.10.00 %15.9 %15.7 % 5.00
Industry Average123,699.00 Cr744.1924.84127.110.67%18.89%15.80%6.56

All Competitor Stocks of Mphasis Ltd

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales2,5242,6912,8693,1243,2783,4113,5203,5063,3613,2523,2763,3383,412
Expenses2,0572,2022,3712,5712,7012,8112,9022,8892,7632,6652,6812,7372,773
Operating Profit467489498553577600618618599587596601639
OPM %19%18%17%18%18%18%18%18%18%18%18%18%19%
Other Income33474431393643404350495464
Interest14161622212326242424345350
Depreciation6262668380808082838789103131
Profit before tax424458460480516533555551534526522499522
Tax %25%26%26%25%24%25%25%25%24%25%25%25%25%
Net Profit317340341358392402418412405396392374393
EPS in Rs16.9418.1518.2319.0820.8821.3722.2421.8921.5121.0120.7819.7920.81

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthOct 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales5,7962,5945,7956,0816,0766,5467,7318,8449,72211,96113,79813,279
Expenses4,7642,1544,9255,2185,1085,4836,4077,1937,9199,84411,36510,857
Operating Profit1,0334408708639691,0621,3241,6501,8032,1182,4342,422
OPM %18%17%15%14%16%16%17%19%19%18%18%18%
Other Income14044194172223149177178133160162218
Interest3311282414131781637497161
Depreciation1455098121797176232242291325410
Profit before tax9954229388901,0991,1281,4071,5151,6311,9132,1732,068
Tax %25%28%28%29%28%26%24%22%25%25%25%25%
Net Profit7443036756327928381,0731,1851,2171,4311,6381,555
EPS in Rs35.4014.4032.1030.0537.6243.3457.6463.5265.0676.1986.9482.27
Dividend Payout %48%49%50%67%45%46%47%55%100%60%58%67%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)122.77%-6.37%25.32%5.81%28.04%10.44%2.70%17.58%14.47%-5.07%
Change in YoY Net Profit Growth (%)0.00%-129.14%31.69%-19.51%22.23%-17.60%-7.74%14.88%-3.12%-19.53%

Mphasis Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 10 years from 2014-2015 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:18%
5 Years:11%
3 Years:11%
TTM:2%
Compounded Profit Growth
10 Years:17%
5 Years:8%
3 Years:8%
TTM:-1%
Stock Price CAGR
10 Years:22%
5 Years:27%
3 Years:-4%
1 Year:24%
Return on Equity
10 Years:18%
5 Years:20%
3 Years:20%
Last Year:18%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 8:30 pm

MonthOct 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital210210210210210193186187187188188189189
Reserves4,7244,9055,2705,6455,9425,2895,0645,6436,3406,7557,7468,6068,480
Borrowings5545405754612603905435715135271981,5441,820
Other Liabilities1,6011,3201,3121,0928891,1091,5762,3392,3243,2143,3733,6623,092
Total Liabilities7,0906,9747,3677,4087,3016,9807,3688,7409,36510,68411,50614,00013,582
Fixed Assets2,4622,4042,3341,5971,9211,8842,1703,0133,0203,7744,0605,5335,558
CWIP26620561231731132610
Investments1,8991,8151,4432,1222,3961,7821,3291,3261,8461,8131,7533,0902,123
Other Assets2,7022,7483,5693,6332,9833,3123,8664,3844,4965,0875,6625,3165,901
Total Assets7,0906,9747,3677,4087,3016,9807,3688,7409,36510,68411,50614,00013,582

Reserves and Borrowings Chart

Cash Flow

MonthOct 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +7561986167316647239501,3211,4551,7161,4622,180
Cash from Investing Activity +-483225-380-175267507280142-810-271196-2,496
Cash from Financing Activity +-318-429-186-568-710-1,380-1,342-825-861-1,389-1,44077
Net Cash Flow-45-750-12221-149-112638-21756217-239

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Oct 2013
Free Cash Flow-100.00295.00402.00709.00-389.00-542.00-570.00-512.00-525.00-196.001.00-553.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthOct 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days4110939393845453435686767
Inventory Days
Days Payable
Cash Conversion Cycle4110939393845453435686767
Working Capital Days-10223284442442934292516
ROCE %20%8%16%15%18%19%24%26%25%27%29%24%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters55.95%55.90%55.80%55.72%55.70%55.65%55.63%55.58%55.57%55.52%55.45%40.35%
FIIs20.85%21.10%21.09%20.48%20.71%18.89%17.72%17.19%16.60%15.72%14.84%18.32%
DIIs17.95%17.79%18.04%18.16%17.78%19.54%21.00%21.05%22.55%23.71%24.63%35.84%
Public5.25%5.21%5.07%5.64%5.80%5.93%5.65%6.19%5.27%5.06%5.08%5.49%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.00%
No. of Shareholders1,07,2591,20,7851,26,8951,51,4701,77,5331,77,4561,69,2151,77,0131,53,7921,48,4281,47,3501,67,593

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Mid-Cap Opportunities Fund - Regular Plan3,376,9601.18771.33900,7342024-11-21274.91%
Kotak Emerging Equity Fund - Regular Plan2,053,5941.04469.06900,7342024-11-21127.99%
Nippon India Growth Fund1,000,0000.82228.41900,7342024-11-2111.02%
Kotak Equity Opportunities Fund - Regular Plan950,0000.97216.99900,7342024-11-215.47%
HDFC Large and Mid Cap Fund - Regular Plan900,7341.06205.74900,7342024-11-210%
Franklin India Prima Fund822,1901.71187.8900,7342024-11-21-8.72%
Mirae Asset Midcap Fund779,6291.16178.08900,7342024-11-21-13.45%
Tata Digital India Fund779,1031.93177.95900,7342024-11-21-13.5%
Mirae Asset Focused Fund762,3602.2174.13900,7342024-11-21-15.36%
UTI Value Fund750,0001.88171.31900,7342024-11-21-16.73%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)82.4287.0576.3865.1863.57
Diluted EPS (Rs.)81.8386.3775.6164.4363.09
Cash EPS (Rs.)103.98104.2091.6677.9875.93
Book Value[Excl.RevalReserv]/Share (Rs.)465.31421.15369.66348.93312.51
Book Value[Incl.RevalReserv]/Share (Rs.)465.31421.15369.66348.93312.51
Revenue From Operations / Share (Rs.)702.55732.38636.84519.77474.07
PBDIT / Share (Rs.)139.66137.76121.29103.4998.00
PBIT / Share (Rs.)117.94120.50105.8190.5685.59
PBT / Share (Rs.)109.43115.34101.8487.1781.23
Net Profit / Share (Rs.)82.2686.9476.1865.0563.52
NP After MI And SOA / Share (Rs.)82.2686.9476.1865.0563.52
PBDIT Margin (%)19.8718.8119.0419.9120.67
PBIT Margin (%)16.7816.4516.6117.4218.05
PBT Margin (%)15.5715.7415.9916.7717.13
Net Profit Margin (%)11.7011.8711.9612.5113.39
NP After MI And SOA Margin (%)11.7011.8711.9612.5113.39
Return on Networth / Equity (%)17.6720.6420.6018.6420.32
Return on Capital Employeed (%)22.4525.7625.3223.3424.24
Return On Assets (%)11.0014.1013.3012.9413.53
Total Debt / Equity (X)0.170.020.070.070.09
Asset Turnover Ratio (%)1.031.050.900.750.67
Current Ratio (X)1.582.131.962.402.04
Quick Ratio (X)1.582.131.962.402.04
Dividend Payout Ratio (NP) (%)60.6452.8285.0853.6642.46
Dividend Payout Ratio (CP) (%)47.9744.0770.7144.7635.51
Earning Retention Ratio (%)39.3647.1814.9246.3457.54
Cash Earning Retention Ratio (%)52.0355.9329.2955.2464.49
Interest Coverage Ratio (X)16.4126.6930.6230.5322.52
Interest Coverage Ratio (Post Tax) (X)10.6717.8420.2320.1915.59
Enterprise Value (Cr.)45867.3832991.4162998.7932810.4611841.36
EV / Net Operating Revenue (X)3.452.395.273.371.34
EV / EBITDA (X)17.3812.7127.6516.956.48
MarketCap / Net Operating Revenue (X)3.402.455.303.431.40
Retention Ratios (%)39.3547.1714.9146.3357.53
Price / BV (X)5.134.279.135.112.13
Price / Net Operating Revenue (X)3.402.455.303.431.40
EarningsYield0.030.040.020.030.09

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Mphasis Ltd as of November 23, 2024 is: 2,937.15

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 23, 2024, Mphasis Ltd is Undervalued by 1.84% compared to the current share price 2,884.00

Intrinsic Value of Mphasis Ltd as of November 23, 2024 is: 3,093.09

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 23, 2024, Mphasis Ltd is Undervalued by 7.25% compared to the current share price 2,884.00

Last 5 Year EPS CAGR: 5.31%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 20.92%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 25.50, which is a positive sign.
  3. The company has higher reserves (6,185.31 cr) compared to borrowings (653.54 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (7.58 cr) and profit (271.25 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 52.25, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Mphasis Ltd:
    1. Net Profit Margin: 11.7%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 22.45% (Industry Average ROCE: 18.89%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 17.67% (Industry Average ROE: 15.8%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 10.67
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.58
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 34.2 (Industry average Stock P/E: 24.84)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.17
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

MphasiS Ltd. is a Public Limited Listed company incorporated on 10/08/1992 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L30007KA1992PLC025294 and registration number is 025294. Currently Company is involved in the business activities of Computer programming activities. Company’s Total Operating Revenue is Rs. 7389.55 Cr. and Equity Capital is Rs. 187.83 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareBagmane World Technology Center, Bengaluru Karnataka 560048investor.relations@mphasis.com
http://www.mphasis.com
Management
NamePosition Held
Mr. Davinder Singh BrarChairman
Mr. Nitin RakeshManaging Director & CEO
Mr. Maureen Anne ErasmusDirector
Mr. Amit DalmiaDirector
Mr. Amit DixitDirector
Mr. Sunil GulatiDirector
Ms. Jan Kathleen HierDirector
Mr. Kabir MathurDirector
Mr. Pankaj SoodDirector
Mr. Courtney Della CavaDirector
Mr. Marshall Jan LuxDirector
Mr. David Lawrence JohnsonDirector

FAQ

What is the latest intrinsic value of Mphasis Ltd?

The latest intrinsic value of Mphasis Ltd as on 23 November 2024 is ₹2937.15, which is 1.84% higher than the current market price of ₹2,884.00.

What is the Market Cap of Mphasis Ltd?

The Market Cap of Mphasis Ltd is 54,556 Cr..

What is the current Stock Price of Mphasis Ltd as on 23 November 2024?

The current stock price of Mphasis Ltd as on 23 November 2024 is 2,884.

What is the High / Low of Mphasis Ltd stocks in FY 2024?

In FY 2024, the High / Low of Mphasis Ltd stocks is 3,188/2,180.

What is the Stock P/E of Mphasis Ltd?

The Stock P/E of Mphasis Ltd is 34.2.

What is the Book Value of Mphasis Ltd?

The Book Value of Mphasis Ltd is 458.

What is the Dividend Yield of Mphasis Ltd?

The Dividend Yield of Mphasis Ltd is 1.91 %.

What is the ROCE of Mphasis Ltd?

The ROCE of Mphasis Ltd is 24.0 %.

What is the ROE of Mphasis Ltd?

The ROE of Mphasis Ltd is 18.4 %.

What is the Face Value of Mphasis Ltd?

The Face Value of Mphasis Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Mphasis Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE