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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Mphasis Ltd

About the Company - Mphasis Ltd

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
Ms. Jan Kathleen HierDirector
Mr. Kabir MathurDirector
Mr. Pankaj SoodDirector
Mr. Courtney Della CavaDirector
Mr. David Lawrence JohnsonDirector
Mr. Amit DixitDirector
Mr. Amit DalmiaDirector
Mr. Marshall Jan LuxDirector
Mr. Maureen Anne ErasmusDirector
Mr. Narayanan KumarDirector

MphasiS Ltd. Share Price Update

Share PriceValue
Today₹2,593.50
Previous Day₹2,587.15

Basic Stock Data of Mphasis Ltd

Market Cap 50,814 Cr.
Current Price 2,690
High / Low2,838/1,660
Stock P/E32.4
Book Value 419
Dividend Yield1.82 %
ROCE28.9 %
ROE21.9 %
Face Value 10.0

Data Source: screener.in

Competitors of Mphasis Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ramco Systems Ltd 1,091 Cr. 308357/188 1010.00 %32.6 %37.1 % 10.0
3i Infotech Ltd 882 Cr. 52.263.9/25.9 25.20.00 %2.59 %0.45 % 10.0
Zensar Technologies Ltd 12,068 Cr. 533644/25919.7 1440.94 %14.5 %11.2 % 2.00
Cybertech Systems & Software Ltd 532 Cr. 171215/84.825.3 53.11.16 %20.0 %13.8 % 10.0
Nucleus Software Exports Ltd 3,977 Cr. 1,4861,830/53419.2 2570.67 %27.1 %20.3 % 10.0
Industry Average286 Cr213.0412.84116.060.55%19.36%16.57%8.4

Mphasis Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,4742,5242,6912,8693,1243,2783,4113,5203,5063,3613,2523,2763,338
Expenses2,0092,0572,2022,3712,5712,7012,8112,9022,8892,7632,6652,6812,737
Operating Profit466467489498553577600618618599587596601
OPM %19%19%18%17%18%18%18%18%18%18%18%18%18%
Other Income37334744313936434043504954
Interest15141616222123262424243453
Depreciation616262668380808082838789103
Profit before tax427424458460480516533555551534526522499
Tax %24%25%26%26%25%24%25%25%25%24%25%25%25%
Net Profit326317340341358392402418412405396392374
EPS in Rs17.4316.9418.1518.2319.0820.8821.3722.2421.8921.5121.0120.7819.79

Mphasis Ltd Quarterly Chart

Mphasis Ltd Profit & Loss

MonthOct 2012Oct 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5,3575,7962,5945,7956,0816,0766,5467,7318,8449,72211,96113,79813,396
Expenses4,3084,7642,1544,9255,2185,1085,4836,4077,1937,9199,84411,36510,997
Operating Profit1,0491,0334408708639691,0621,3241,6501,8032,1182,4342,399
OPM %20%18%17%15%14%16%16%17%19%19%18%18%18%
Other Income16814044194172223149177178133160162182
Interest153311282414131781637497106
Depreciation1741455098121797176232242291325342
Profit before tax1,0289954229388901,0991,1281,4071,5151,6311,9132,1732,133
Tax %23%25%28%28%29%28%26%24%22%25%25%25%
Net Profit7927443036756327928381,0731,1851,2171,4311,6381,606
EPS in Rs37.7135.4014.4032.1030.0537.6243.3457.6463.5265.0676.1986.9485.19
Dividend Payout %45%48%49%50%67%45%46%47%55%100%60%58%

Mphasis Ltd Profit & Loss Yearly Chart

Mphasis Ltd Growth

Compounded Sales Growth
10 Years:10%
5 Years:16%
3 Years:16%
TTM:-4%
Compounded Profit Growth
10 Years:8%
5 Years:14%
3 Years:11%
TTM:-4%
Stock Price CAGR
10 Years:21%
5 Years:22%
3 Years:17%
1 Year:23%
Return on Equity
10 Years:17%
5 Years:21%
3 Years:21%
Last Year:22%

Mphasis Ltd Balance Sheet

MonthOct 2012Oct 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital210210210210210210193186187187188188189
Reserves4,1954,7244,9055,2705,6455,9425,2895,0645,6436,3406,7557,7467,722
Borrowings3235545405754612603905435715135271981,580
Other Liabilities1,4051,6011,3201,3121,0928891,1091,5762,3392,3243,2143,3732,817
Total Liabilities6,1337,0906,9747,3677,4087,3016,9807,3688,7409,36510,68411,50612,308
Fixed Assets1,1972,4622,4042,3341,5971,9211,8842,1703,0133,0203,7744,0604,728
CWIP12266205612317311320
Investments2,5191,8991,8151,4432,1222,3961,7821,3291,3261,8461,8131,7531,949
Other Assets2,4042,7022,7483,5693,6332,9833,3123,8664,3844,4965,0875,6625,631
Total Assets6,1337,0906,9747,3677,4087,3016,9807,3688,7409,36510,68411,50612,308

Mphasis Ltd Reserves and Borrowings Chart

Mphasis Ltd Cash Flow

MonthOct 2012Oct 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 9667561986167316647239501,3211,4551,7161,462
Cash from Investing Activity -727-483225-380-175267507280142-810-271196
Cash from Financing Activity -103-318-429-186-568-710-1,380-1,342-825-861-1,389-1,440
Net Cash Flow136-45-750-12221-149-112638-21756217

Mphasis Ltd Financial Efficiency Indicators

MonthOct 2012Oct 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days4341109393938454534356867
Inventory Days
Days Payable
Cash Conversion Cycle4341109393938454534356867
Working Capital Days5-102232844424429342925
ROCE %23%20%8%16%15%18%19%24%26%25%27%29%

Mphasis Ltd Financial Efficiency Indicators Chart

Mphasis Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters56.03%55.99%55.95%55.90%55.80%55.72%55.70%55.65%55.63%55.58%55.57%55.52%
FIIs21.82%20.80%20.85%21.10%21.09%20.48%20.71%18.89%17.72%17.19%16.60%15.72%
DIIs17.15%18.46%17.95%17.79%18.04%18.16%17.78%19.54%21.00%21.05%22.55%23.71%
Public4.99%4.75%5.25%5.21%5.07%5.64%5.80%5.93%5.65%6.19%5.27%5.06%
No. of Shareholders65,81073,6341,07,2591,20,7851,26,8951,51,4701,77,5331,77,4561,69,2151,77,0131,53,7921,48,428

Mphasis Ltd Shareholding Pattern Chart

No. of Mphasis Ltd Shareholders

Mphasis Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
HDFC Mid-Cap Opportunities Fund - Regular Plan21649690.98509.77
Axis Midcap Fund13741931.37323.57
Canara Robeco Emerging Equities10310871.29242.78
HDFC Large and Mid Cap Fund - Regular Plan8507341.49200.32
Invesco India Contra Fund8323961.62196
Franklin India Prima Fund8221902.09193.6
Mirae Asset Focused Fund8036472.08189.23
ICICI Prudential Value Discovery Fund7786740.52183.35
UTI Value Fund7692222.27181.12
Nippon India Growth Fund7000000.77164.83

Mphasis Ltd ROCE Trend

Mphasis Ltd EPS Trend

Mphasis Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)87.0576.3865.1863.5756.05
Diluted EPS (Rs.)86.3775.6164.4363.0955.50
Cash EPS (Rs.)104.2091.6677.9875.9361.71
Book Value[Excl.RevalReserv]/Share (Rs.)421.15369.66348.93312.51281.90
Book Value[Incl.RevalReserv]/Share (Rs.)421.15369.66348.93312.51281.90
Revenue From Operations / Share (Rs.)732.38636.84519.77474.07415.14
PBDIT / Share (Rs.)137.76121.29103.4998.0080.58
PBIT / Share (Rs.)120.50105.8190.5685.5976.50
PBT / Share (Rs.)115.34101.8487.1781.2375.57
Net Profit / Share (Rs.)86.9476.1865.0563.5257.64
NP After MI And SOA / Share (Rs.)86.9476.1865.0563.5257.64
PBDIT Margin (%)18.8119.0419.9120.6719.40
PBIT Margin (%)16.4516.6117.4218.0518.42
PBT Margin (%)15.7415.9916.7717.1318.20
Net Profit Margin (%)11.8711.9612.5113.3913.88
NP After MI And SOA Margin (%)11.8711.9612.5113.3913.88
Return on Networth / Equity (%)20.6420.6018.6420.3220.44
Return on Capital Employeed (%)25.7625.3223.3424.2426.49
Return On Assets (%)14.1013.3012.9413.5314.56
Total Debt / Equity (X)0.020.070.070.090.10
Asset Turnover Ratio (%)1.050.900.750.670.60
Current Ratio (X)2.131.962.402.042.06
Quick Ratio (X)2.131.962.402.042.06
Dividend Payout Ratio (NP) (%)52.8285.0853.6642.4636.02
Dividend Payout Ratio (CP) (%)44.0770.7144.7635.5133.64
Earning Retention Ratio (%)47.1814.9246.3457.5463.98
Cash Earning Retention Ratio (%)55.9329.2955.2464.4966.36
Interest Coverage Ratio (X)26.6930.6230.5322.5286.39
Interest Coverage Ratio (Post Tax) (X)17.8420.2320.1915.5962.80
Enterprise Value (Cr.)32991.4162998.7932810.4611841.3618315.94
EV / Net Operating Revenue (X)2.395.273.371.342.37
EV / EBITDA (X)12.7127.6516.956.4812.21
MarketCap / Net Operating Revenue (X)2.455.303.431.402.38
Retention Ratios (%)47.1714.9146.3357.5363.97
Price / BV (X)4.279.135.112.133.51
Price / Net Operating Revenue (X)2.455.303.431.402.38
EarningsYield0.040.020.030.090.05

Mphasis Ltd Profitability Ratios (%)

Mphasis Ltd Liquidity Ratios

Mphasis Ltd Liquidity Ratios (%)

Mphasis Ltd Interest Coverage Ratios (%)

Mphasis Ltd Valuation Ratios

Fair Value of Mphasis Ltd Stock

Fair Value: ₹3027.17

The stock is undervalued by 12.53% compared to the current price ₹2690

*Investments are subject to market risks

Strength and Weakness of Mphasis Ltd Stock

StrengthWeakness
  1. The stock has a high average ROCE of 20.83%, which is a positive sign.
  2. The stock has a low average Working Capital Days of 24.58, which is a positive sign.
  3. The company has higher reserves (5,787.69 cr) compared to borrowings (541.15 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (7.38 cr) and profit (250.46 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 95.79 and average Dividend Yield of 17.39%.
  2. The stock has a high average Cash Conversion Cycle of 50.25, which may not be favorable.

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