ScoreWhy is Mphasis Ltd. ?
1
High Management Efficiency with a high ROE of 20.32%
2
Company has a low Debt to Equity ratio (avg) at 0 times
3
Poor long term growth as Net Sales has grown by an annual rate of 9.97% and Operating profit at 8.77% over the last 5 years
4
Flat results in Dec 25
- DEBTORS TURNOVER RATIO(HY) Lowest at 4.77 times
5
With ROE of 18.6, it has a Expensive valuation with a 5.5 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 -8.00%, its profits have risen by 10.7% ; the PEG ratio of the company is 2.8
6
Reducing Promoter Confidence
- Promoters have decreased their stake in the company by -9.51% over the previous quarter and currently hold 30.59% of the company
- Promoters decreasing their stake may signify reduced confidence in the future of the business
7
Below par performance in long term as well as near term
- Along with generating -8.00% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Mphasis should be less than 10%
- Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Mphasis for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Mphasis
-7.86%
-0.26
30.21%
Sensex
7.88%
0.70
11.23%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
9.97%
EBIT Growth (5y)
8.77%
EBIT to Interest (avg)
17.77
Debt to EBITDA (avg)
0.67
Net Debt to Equity (avg)
-0.07
Sales to Capital Employed (avg)
1.38
Tax Ratio
25.61%
Dividend Payout Ratio
63.65%
Pledged Shares
0
Institutional Holding
65.04%
ROCE (avg)
29.84%
ROE (avg)
20.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
29
Industry P/E
27
Price to Book Value
5.48
EV to EBIT
22.24
EV to EBITDA
18.09
EV to Capital Employed
5.80
EV to Sales
3.40
PEG Ratio
2.83
Dividend Yield
2.06%
ROCE (Latest)
25.39%
ROE (Latest)
18.55%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
NET SALES(Q)
Highest at Rs 4,002.58 cr
PBDIT(Q)
Highest at Rs 751.68 cr.
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 1,615.78 cr
PBT LESS OI(Q)
Highest at Rs 566.20 cr.
-4What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.77 times
Loading Valuation Snapshot...
Here's what is working for Mphasis
Net Sales - Quarterly
Highest at Rs 4,002.58 cr and Grown
each quarter in the last five quartersMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs 751.68 cr. and Grown
each quarter in the last five quartersMOJO Watch
Near term Operating Profit trend is quite positive
Operating Profit (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 566.20 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 1,615.78 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for Mphasis
Debtors Turnover Ratio- Half Yearly
Lowest at 4.77 times and Fallen
each half year in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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