Mphasis Ltd. (MPHASIS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Netweb Technol.

Coforge

Inventurus Knowl

Tata Technolog.

LTM

L&T Technology

Persistent Syste

Hexaware Tech.

Wipro

Tech Mahindra

Mphasis

Why is Mphasis Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 8.98% of over the last 5 years

Flat results in Jun 26

INTEREST(9M) At Rs 166.99 cr has Grown at 37.26%
DEBTORS TURNOVER RATIO(HY) Lowest at 3.79 times

With ROE of 17.6, it has a Expensive valuation with a 4.3 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -8.17%, its profits have risen by 11.4% ; the PEG ratio of the company is 2.2

100% of Promoter Shares are Pledged

In falling markets, high promoter pledged shares puts additional downward pressure on the stock prices
The proportion of pledged holdings has increased by 100% over the last quarter

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 4.03% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.17% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Mphasis for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mphasis

-8.07%

-0.27

30.05%

Sensex

-2.63%

-0.20

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.30%

EBIT Growth (5y)

8.98%

EBIT to Interest (avg)

16.32

Debt to EBITDA (avg)

0.69

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

1.37

Tax Ratio

26.01%

Dividend Payout Ratio

63.65%

Pledged Shares

100.00%

Institutional Holding

64.81%

ROCE (avg)

29.15%

ROE (avg)

18.84%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.30

EV to EBIT

18.27

EV to EBITDA

14.88

EV to Capital Employed

4.45

EV to Sales

2.77

PEG Ratio

2.17

Dividend Yield

2.56%

ROCE (Latest)

23.60%

ROE (Latest)

17.58%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

NET SALES(Q)

Highest at Rs 4,384.05 cr

PBT LESS OI(Q)

Highest at Rs 599.93 cr.

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,752.71 cr

-7What is not working for the Company

INTEREST(9M)

At Rs 166.99 cr has Grown at 37.26%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.79 times

Loading Valuation Snapshot...

Here's what is working for Mphasis

Net Sales - Quarterly

Highest at Rs 4,384.05 cr and Grown

each quarter in the last five quarters

MOJO Watch

Near term sales trend is very positive

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 599.93 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,752.71 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Mphasis

Interest - Latest six months

At Rs 125.86 cr has Grown at 48.24%

over previous Half yearly period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 3.79 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio